Us Kiwis pride ourselves on our DIY-ing. But life is only getting more complicated. Busier. With more choices. So perhaps it’s time to consider using a trusted expert instead of number 8 wire.
Or think about it this way - would you try and muddle through fixing your car if you don't know what you are doing?
No, we didn’t think you would. It is too risky, right?
So why would you do the same with your mortgage? It is a huge risk to try and DIY your mortgage. You could end up costing yourself thousands of dollars in interest that you don’t need to pay and spending precious time trying to find rates that often only those in the industry can achieve.
If it is time to buy your first home, review your existing mortgage, or re-fix your expired interest rates, then a mortgage broker is your not-so-secret weapon.
Getting or reviewing a mortgage on your own can be difficult and time consuming. A mortgage broker can do the hard work for you and get you better deals.
Let’s look at the reasons why you shouldn’t try to DIY your mortgage.
What does a mortgage broker do?
A mortgage broker is a company or individual who liaises between borrowers (you) and lenders (banks). They work independently to find you a home loan and complete the application process on your behalf. You provide them with the information they need about your financial situation, and they can work out pre-approval, loan structures, and loan or interest comparisons for you.
Using a mortgage broker has heaps of benefits:
Access to a range of lenders and loan products
Brokers are not tied to any particular product or lender. If you go directly to a specific bank for mortgage options, they are limited to their own loan products – which might not be the best deals for you.
Brokers have access to options across all the main banks and can compare rates from each of them. They are also experienced in the industry and know the ins and outs of each bank. They can give you impartial advice, making them your personal financial advisor and advocate!
They get better rates
Mortgage brokers are often able to get better rates than what you would get directly from a bank. Brokers have connections across many lenders and can secure good rates based on their knowledge and experience. They will refer multiple clients to the various lenders each week, so banks are more willing to give them the preferential rates you can benefit from!
Their service is free
Borrowers don’t have to pay brokers anything! If you have a straightforward application then their services are free for you to access. Some brokers may have charges for particularly complex loans, or if you are only borrowing a small amount.
They take care of applications
Once you have provided the information to your broker, you just sit back and wait! They take care of the application process for you and can negotiate with lenders on your behalf. They will also be able to present you with a range of options so that you can choose the one that suits you best.
They can show you the ropes of home buying
Brokers know all about the home buying process, from the application forms right through to settlement day. It can be an intimidating process for a first home buyer, but a broker will guide you through the steps and make it a lot easier. They will keep you informed throughout the application and can liaise with your lawyer or real estate agent as needed to get things done.
They can structure the loan to suit you
Your broker can explain all the different types of loans and what structure will be best for you. You can split your loan between different interest rates or use fixed or variable rates. A mortgage broker is perfectly placed to advise you on the technicalities of a home loan.
They can offer extra services
Many mortgage brokers can also offer additional services like insurance. This is especially handy if you are buying your first home and also want to look at things like home, income, health, or life insurance.
Unless you have a hidden wealth of knowledge on all things property and finances, then your best bet is to engage a broker to help you when buying a home or refixing your mortgage.
Here at The Finance Marshall, we are really passionate about helping homeowners, both potential and existing, to get the best deal for their individual situations. And we can get that great deal for you. Get in touch with us to discuss how we could help you with your next step in the property market.