When considering applying for a Home Loan or refinancing a Mortgage, many Kiwis wonder if there are benefits for using a Mortgage Broker, as opposed to going direct to their Bank.
Going direct to your Bank can work well if your situation is straightforward. But if you’d like access to a wider range of loan options, independent advice, and support with the application process, a Mortgage Adviser is the smarter choice.
There are pros and cons of each and to help you choose the right approach we have detailed the main differences.
Why go directly to your Bank?
Working directly with your Bank can feel like the simplest option, especially if you’ve banked with them for a long time. After all, they already know you and your finances and you might have other accounts with them, like KiwiSaver.
It can also be convenient to deal with just one organisation and build on an existing relationship.
But going direct to your Bank also means you’re limited to only that Bank’s products, rates and lending criteria, which may not be the most competitive for your requirements. Also, some Banks apply stricter rules to first home buyers and they may not be as flexible for borrowers with irregular income or credit issues.
They may even offer better rates to new customers, than those available to existing customers.
Pros:
- Familiarity as they know you and your finances.
- Straightforward as you deal with one organisation.
- Existing relationship so you don’t have to switch banks.
Cons:
- Limited options as you can only access their products, interest rates and terms.
- Stricter rules as they may be more conservative with lending, especially to those who don’t meet their lending criteria.
- Limited advice as Bank staff can’t offer the same impartiality as an independent adviser.
Why work with a Mortgage Adviser?
Getting advice from a Mortgage Adviser gives you access to a wide range of lenders and products, not just one Bank.
A Mortgage Adviser does the legwork for you, shopping around on your behalf and explaining your options in plain language. They can even help with the paperwork to make the process easier and less stressful.
Mortgage Advisers are especially helpful if you’re a first home buyer, or your situation is a little complex, because they can often find solutions that suit your unique requirements.
Best of all, by working with a Mortgage Adviser, you’ll have someone on your side, providing independent advice and working to get you the right deal.
Pros:
- Access to more lending options: more choice offers a better chance of approval.
- Tailored solutions and independent advice, they work for you, not the lender, matching you with the right lender for your situation.
- Guidance every step of the way: from structuring your application, to comparing loan options, to chasing approvals.
- Support for first home buyers: if you’re new to the home buying process, a Mortgage Adviser is invaluable.
Cons:
- Extra step in the process adds another layer of communication, which may not suit all borrowers.
- Varies by adviser as not all advisers work with the same lenders or have the same experience, so choosing one with proven expertise is essential.
What Mortgage Advisers can do
A Mortgage Adviser can:
- Assess your financial situation and creditworthiness
- Provide tailored advice on lending options
- Shop around and compare offers from multiple lenders
- Negotiate with lenders on your behalf
- Manage the paperwork and application process
Offer guidance on refinancing in the future
iLender is here to help with finding the right mortgage for you with less stress and a better chance of success, whether you’re buying your first home, refinancing, or adding to your property portfolio.
So feel free to reach out if you need a hand making the right decision, or just to have a chat, pick up the phone and call 0800 LENDER (536337) or email to [email protected] and we will be delighted to be your Mortgage Adviser of choice.
