Michael Anastasiadis here, Mortgage Broker.
With finance, not everyone is treated equally, and further down this page, I’ll give you some tips about how to navigate through this journey…
I’ve been working with finance for a long time, and nothing excites me more than helping someone get their finance approved. I absolutely LOVE it!
You know, in your heart, that you can afford that lending, and make the payments.
But, as you also know, the banks make it seem like they are doing you a major favour, and you should bow to them at all times!
Here are some tips that I’d like to share with you; feel free to reach out to discuss these with me at any time.
Banks are a business, like any other business.
As such, they need customers!
You are that customer – remember that at all times.
With no lending, they are out of business.
They are keen to loan you the money, but as they are the ultimate risk avoider, they have very tight lending criteria, and it is getting tougher, not easier.
Play the game, but be aware that it takes time to get this game completed.
Don’t get frustrated, if you are choosing to do it yourself through the bank without a broker, see the bank lending officer as your friend, not your enemy.
If using a broker such as myself, be sure to get all the documentation done fast, be accurate, and expect a few calls to clarify things. This is totally normal.
A few questions that I usually ask, and any lender will probably ask (so have these answers lined up in advance):
- Are you a permanent NZ resident?
- Do you have a good credit history?
- What’s your deposit? (if your deposit is less than 20%, using a broker might be useful)
- What’s your total combined annual income?
- Where do you want to buy, and what price range are you looking at?
Almost every loan will require a lot more than that, but those 5 questions are a great start.
Banks actually LIKE mortgage brokers – it saves banks time and effort.
This is true. Occasionally people will feel like they are doing the wrong thing using a broker.
This couldn’t be further from the truth.
Banks spend a lot of time and money to get loans processed, so brokers actually help banks out, and they realise that a broker will make the whole process much smoother.
Whether you use me or not.. You certainly should use a mortgage broker.
It costs you nothing (the bank or lender pays the broker, not you), and will help you succeed, and probably save money too. (see next point for that tip!)
Interest rates from banks are negotiable.
Yes – you read that right!
Never forget that banks need to lend money to stay in business.
Like any other business, rates and terms are negotiable.
Brokers are very good at working for you to get a better rate… yes… brokers save you money, not cost you money!
If you go ahead on your own without a broker, please DO negotiate, you’ll be surprised at what you can save over the course of a loan.
Other costs can be waived – if you are seen as a prime candidate
Yes, I’ve seen plenty of establishment fees waived, discounts given, and benefits that the average person just isn’t aware exist… if you are viewed as a prime candidate.
What is a prime candidate?
These are people that the bank really wants to do business with.
Eg – high income earners, well known families, large deposits, people with notable careers.
Brokers can help you appear to be that prime candidate!
Can you find a way to get a higher deposit organised? Can you tidy up your other debts and lines of credit so that your finances are tidy? Can you reduce monthly expenses?
These things all help.
Be aware of your credit score.
I won’t give advice on who to use, or how, but there is a credit score, and you should find out more about this. Can you improve on yours?
If you are ahead with your planning, this is something you should look into. It helps, the banks will be looking at it.
I really hope you have found this information useful. If you are ready to progress with your next home, feel free to reach out and get in touch. I genuinely love helping people through this process, so please do email me with the form below, and I’ll call you for a quick chat, even if you are just in that “thinking about it phase”, I’d love to help you out.
Michael Anastasiadis – Mortgage Broker, Bozinoff Mortgages