Why a mortgage broker is your best tool for maximising your property potential

Why a mortgage broker is your best tool for maximising your property potential

 

The biggest barrier to purchasing property is finance. Very few people would have the cash to purchase a property outright, and for them to have been able to do so, they’ve likely leveraged mortgage to be in that position.

So, if you’re looking to purchase a property, you want to be able to use the best finance option for you and to be able to buy the best property you can afford. This is when using a mortgage broker/adviser can maximise your potential.

 

What does a mortgage broker/adviser do?

 

Good, independent (not working at a particular bank) mortgage brokers/advisers live and breathe mortgage finance, they maintain relationships with a large number of lenders from main banks, near bank and non-bank lenders. Not all banks are the same and not all lenders will be the right fit for you at various stages of your property journey. Brokers/advisers and have an intimate knowledge of what each one has to offer their customers. They keep up to date with the policies associated with each lender’s products and how likely their customer will be successful at securing funding for their property related endeavours.

Mortgage brokers/advisers help find the right lender for you and submit your application on your behalf, improving speed of application and success rates as it’s prepared to the bank’s expectations and ultimately taking a huge load of stress out of an already stressful time, so you can focus on your property goals.

 

What makes a mortgage broker/adviser such a great tool?

 

Advice
An independent broker/adviser (one not working specifically for one lender) can give you unbiased advice and present you with the lending options available to you.

Increase your borrowing power
They will analyse your finances and can suggest improvements that can significantly increase your borrowing power, even small changes can have a dramatic difference of hundreds of thousands of dollars. Who wouldn’t want to be able to buy a property with a budget increase of $200-300k?

Get you the best deal
As they have developed good relationships with the lenders they work with, they can negotiate things like interest rates and cash backs on your behalf. Often far better than you could negotiate on your own directly with one lender.

Can assist with your property purchase
Mortgage brokers/advisers will check your Sale and Purchase agreements for any issues that may concern a lender and their willingness to lend to you, saving time so you can act quickly.

Will simplify the process
There’s a lot of bank jargon when it comes to purchasing or refinancing. Brokers/advisers work with hundreds of customers and can help to translate policies and how they affect you. 

Will always find a solution for you
With so many lenders available to a mortgage broker/adviser, no matter what your circumstances, they will be able to help find a solution or offer advice as ways to improve your borrowing power.

 

Does it cost to use a Mortgage Broker/Adviser?

 

No, it’s FREE (in 95% of cases). Lenders like maintaining relationships with brokers/advisers as it makes it easier for them to find quality customers to offer finance to. So, they offer brokers/advisers commission as payment for finding them a quality customer.

There are times where there may be a fee involved to the customer, if the lender doesn’t offer this payment to the broker/adviser, however, this is not common and is usually in unique cases or related to property development. A broker/adviser will be upfront in letting you know if there will be a cost for their service when approaching a particular lender.

 

How do I know a Mortgage Broker/Adviser is really working in my best interest?

 

You may be thinking it’s too good to be true, a free service that can offer so much, so what’s the catch? Will the broker/adviser just find me lending even if I can’t afford it, just to get paid? Absolutely not, the way a broker/adviser gets paid is not just a ‘one off’ done and dusted deal. To guarantee that a customer in the bank’s eyes is genuine and to protect customers also, lenders can and will, claw back commission payments if a customer leaves the bank or doesn’t meet their mortgage payments. 

It’s in the best interest of the broker/adviser to find the right lender for you as the customer and for the bank. Otherwise, they’re putting hours of hard work and using their expertise for nothing if they don’t truly believe they can help you.

The FINAX team of mortgage advisers are experts and experienced in helping all types of customers from first home buyers, first time investors, seasoned investors and developers. Get in touch today to maximise your borrowing power: CLICK HERE

 


Melanie Evans – Property Coach |  support@luciaxiao.co.nz