When you are ready to purchase a home, refinance an existing home loan or looking to refix a home loan you, have a couple of options:
- Go directly to the Bank
- Find a mortgage adviser to help you
1. Go directly to the Bank
You can research the banks and lenders yourself, visit the bank or lender and discuss your situation and provide them the information that will help them approve your home loan. There is a catch though, each bank is different and has different criteria and processes to approve your loan. This means you may have to go to multiple banks, fill in multiple application forms before you are approved. This can be very frustrating!
Some people know that the bank will approve their loan and therefore think the process is easier than going to a broker and sometimes this may be true as the bank may already hold security on your property and also have access to all your banking records.
What you don’t get by going to the bank yourself is the knowledge that you are getting the best options and bank rates. The bank may appear to be working in your best interests, but really they are working for their employer (the bank) and are trying to hit their own targets so they get their bonus.
2. Use a Mortgage Adviser
There is a low number of Kiwis that use a mortgage adviser when securing a home loan. This is surprising given that there are so many advantages to using their services.
What is a mortgage adviser/broker?
Mortgage advisers work on your behalf when dealing with the banks or lenders. Mortgage advisers have more negotiating power when dealing with the bank and can often get rates lower than those advertised.
How much does it cost?
Free. No seriously it is free to use a mortgage adviser. Mortgage advisers are paid a commission by the banks or lenders.
How can a mortgage adviser save me time ?
A mortgage adviser is there with you from the beginning of the process to the very end, giving you guidance on all the steps in the process and doing all the necessary paperwork on your behalf. This leaves you with valuable extra time to find your dream house!
Find out how much you can borrow
Fill in our short questionnaire