just wondering on the benefits of using a morgage broker instead of a bank. We have had good service and excellent rates from our bank – what are the advantages of using a broker and what fees does one charge? HG
Big mortgage brokers are very large organisations who effectively give the banks many millions of dollars of mortgage business every month or week. The banks will bend over backwards to keep these brokers happy otherwise they will take their millions elsewhere. For that reason they will give the brokers VERY good deals.
In NZ they normally drop the startup fees, reduce the interest rate by about 0.25% and even contribute towards my legal fees. If you go to the bank yourself with your $100k mortgage requirements they dont tend to be quite so generous. $100k is chicken feed in comparison.
I would always go to a broker. They should cost nothing but can save heaps.
Andrew
http://www.rentmaster.co.nz
Software for LandlordsHGWells,
I will try to be objective but remember I am a broker.
If you are really happy with your current arrangement then I would suggest that you don’t need a broker, unless…
…you want to really know that you are on the best deal out there. In that case most brokers will just be happy to confirm this for you without trying to talk you into a new situation.
Most brokers don’t charge you anything for their service. They are paid a fee by the lender for bringing in business. We all use around 20-30 lenders who pay pretty similar fees but there are some brokers who may recommend a lender based on what they pay. So use a broker with a reputation you can trust or referred by someone you trust.
Cheers,
Simon Macks
Mortgage Hunter
[email protected]
0425 228 985Just like Mortgage Hunter said.
Call a broker to see if you really are on the best deal.
There is the perception out there that you’ve been with your bank for so long and they will look after me, well, not totally true, when it comes to home loans.
There is probably better loans and rates etc.. So, worth while talking to a broker, just to see.
When it comes to home loans in most cases, the final call is up to Mortgage Insurance. This is where your bank can’t do much if it is declined by them. That’s when a lot of people try brokers.
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