Why use a mortgage broker?

The good ol’ Kiwi DIY mentality is pretty bloody useful when it comes to servicing your car or knocking up a fence, but when it comes to taking out a home loan in New Zealand sometimes it’s best to leave it to the experts.

We’re talking, of course, about mortgage brokers. A mortgage broker essentially acts as a middleman between you and home loan providers, and really can improve the approval process from beginning to end. How?

Better rates: Mortgage brokers typically have access to a bunch of different products across a range of lenders, enabling them (and you!) to quickly compare rates and negotiate with banks to find the home loan that best suits your circumstances.

Industry pros: Do you know what an acceleration clause is? What happens when your guarantor goes missing? Any idea what constitutes a ‘reasonable’ lending fee? Mortgage brokers deal with home loans day in, day out, and can help you decipher contract small print to ensure you’re not getting ripped off.

Impartial advice: Unlike lenders, brokers have relatively little interest in which mortgage you ultimately choose. As such, they’re a pretty good source of impartial information and advice.

Strong relationships with banks: The chances of your mortgage application being approved largely comes down to whether a lender thinks it can trust you. Good brokers have strong relationships with many different banks, which can speed up the application process and boost your chances of securing a home loan.

Free: The icing on the cake is that using a mortgage broker is completely free! They get paid by the lender, so you don’t have to worry about yet another cost to buying a house.

While there are many benefits to using a broker, it’s important to keep your options open. In addition to talking to a broker, be sure to check our New Zealand mortgage rate comparison tool for up-to- date insight into the best home loan rates in Aotearoa.