Mortgage Broker Frequently Asked Questions
What do your services cost?
Free as Mortgage Brokers get paid by the Banks, however, if your situation falls outside of the main banks, there may need to be a fee. This will be discussed well in advance. Clients are always kept well aware of what is going on, and are never surprised with any unexpected fees.
Even when people have loads of questions, a Mortgage Broker will keep communicating so you know exactly what is going on:
Why should I use a mortgage broker?
Advice – brokers are qualified to give advice, that banks simply cannot give. Your broker is like your own personal money coach, working for you, to take all things into consideration, then shop around for you, and even use networks, relationships, and old school haggling, to get you better deals and a more well rounded deal that suits your situation. Do your research, as indicated below to ensure you find someone with the right skill set for this.
Comfort and confidence – this is big stuff! Having a broker working for you, makes this stressful situation so much easier. Its very useful having that skilled extra person to discuss things, and take your stress levels right back down.
Network – brokers will have a network of trusted people they work with, that can help you. Property valuers, accountants, lawyers. Work with a trusted team to help you achieve your goals.
Select the right home – all brokers do is work with people purchasing property, that’s it! The knowledge they have of the market is extensive. You can tap that knowledge and rest at ease with that extra brain working as part of your team.
Being available – unlike the banks, you can usually contact your broker at a moments notice, to discuss anything regarding your property purchase, your mortgage, your situation. Brokers are almost like a life coach on call!
The Market has spoken – many years ago, people were happy with the banks, and mortgage brokers weren’t getting many deals done. Now in New Zealand, almost half of home loans are done via brokers, a huge increase. People are voting with their feet – using a broker is a great service.
More information about why using a Mortgage Broker is a good idea – HERE: https://www.michaelmortgageman.co.nz/why-should-you-use-a-mortgage-broker/
What is the difference between a bank and a mortgage broker?
Banks ultimately lend the money, and if going direct through the bank, you are limited to their loans and financial products. A Mortgage Broker is able to look at a far wider range of lending options, and work with you to find your best option.
What documentation is needed to use a Mortgage Broker?
As you’d expect, there are various documents and pieces of information needed to arrange a loan for a property. Your Mortgage Broker will work closely with you on this, as its important and your broker wants to make the process as smooth as possible.
More information available here: http://www.michaelmortgageman.co.nz/wp-content/uploads/2020/09/MA-Privacy-Policy.pdf
Should I use Fixed or Variable loans?
Depends on your situation. There really is no correct answer here except to say that every single situation is different, and the clients job is to stay as informed as possible. Work closely with your entire team – legal, accounting, and financial as well. A Mortgage Broker will have these types of discussions with people often, and provide timely and well thought out advice.
How long does it take to organise my mortgage?
The paperwork can take a few hours and then 5-7 working days for the Banks to approve. At times of hyper property activity, the banks and lenders can be slower than that due to extreme pressure, however your Mortgage Broker / Mortgage Advisor will always keep you informed throughout the entire process.
Do you work with first home buyers?
Yes we do – we have an article here that might help with regards to getting that first deal across the line for you:
How do Mortgage Brokers get paid?
Generally the lender, in most cases a bank, will pay a commission to the Mortgage Broker. The service, usually, will not cost the client.
How many lenders do you deal with?
Several. There is no clear answer here as the actual number changes as the market changes, and the various lenders change their terms as well. Suffice to say its multiple lenders, giving you the best opportunity to get a loan that is just right for you.
Are there fees if I refinance?
Depends on a few factors, and this can change from time to time as well. This is another great reason to work with a Mortgage Broker because working through the intricacies of a bank loan can be tedious and time consuming.
Do you negotiate and shop around for me?
One of the key reasons for using a Mortgage Broker / Mortgage Advisor is to get the best loan in place for your unique situation. Your broker can negotiate and shop around, it depends on which lenders are on the shortlist for your specific situation. Don’t worry, your broker will stay in close communication with you.
Can you help me if I’m not in Wellington NZ?
Absolutely! The joys of the internet and phone mean that you can use a Mortgage Broker from anywhere you like in New Zealand. In fact, why waste your time hanging around banks and driving from place to place when you can use technology and work with your preferred person!
Are Mortgage Brokers Free?
Free as Mortgage Brokers get paid by the Banks, however, if your situation falls outside of the main banks, there may need to be a fee. This will be discussed well in advance.
When do I need to see a Lawyer?
As soon as you have decided to look for a property, the earlier the better. We recommend a good, early, communication plan with your entire team including your Mortgage Broker, accountant, and lawyer / solicitor.
How much does a Lawyer cost?
Allow between $2-$3k. Always best to discuss this at your first meeting. If a Kiwisaver withdraw is required, a Trust Deed or multiple property and LIM checks the cost will be higher that this.
I am self-employed, can you help?
Yes, you do however need to have your latest Financial Statements / Annual Report completed by an Accountant with your Tax Returns available.
Should I own the property in my own name, or a Trust or Company?
If the property is for you to live in, this is something you should discuss with your Lawyer at your initial meeting. If it will be an Investment Property, you should discuss with your Accountant. We would also suggest you find a property accountant, someone who deals in property all the time rather than just as a side part of their business.
Contact me here: https://www.michaelmortgageman.co.nz/#contact
I’d love to talk to you about your finance and mortgage needs!
Learn more here: https://www.michaelmortgageman.co.nz/blog/
More about the benefits of using a Mortgage Broker here: http://www.michaelmortgageman.co.nz/why-should-you-use-a-mortgage-broker/
Michael Anastasiadis – Mortgage Broker Wellington
Michael Anastasiadis – Mortgage Broker Wellington
PS – I often get asked about the crazy property market here in New Zealand – here is a video I shot that talks about that and some wider property thoughts from my experiences as a Mortgage Broker / advisor, working across a range of situations, banks, and lenders: