A relationship with a Mortgage Broker is an important process. It is vital that you know who you are dealing with and does the Company offer the services you need.
Not all do. Asking key questions and getting a better insight into your new Broker’s knowledge and expertise will end up saving you time and hassle in the long run.
iLender is here to offer some friendly advice when dealing with a new Mortgage Broker. Whether it be with one of our fantastic team members or a specialist from another firm, we suggest always bringing up these following questions.
WHAT EXPERIENCE DO YOU HAVE?
Getting to know a bit more about a Mortgage Broker should always start with finding out a bit about their work history. Find out where a Mortgage Broker has worked, what roles he/she has had and the amount of success they have achieved in their past positions. Also ask about customer testimonials that can be verified, Trademe for example is a good starting point. This may seem obvious, but it is surprising just how many people do not bother asking this simple question. While not every Mortgage Broker is going to have many years’ experience, it is important to know if they work under an experienced Brokerage. At iLender Jeff Royle has over 25 years of experience both here in New Zealand and across Europe.
HOW DOES A MORTGAGE BROKER GET PAID?
This is a very important question that can help determine whether or not a Mortgage Broker will be on your side when dealing with them. A Mortgage Broker should always be working in the best interests of their client, without any conflict of interest. In New Zealand most Banks pay about the same in terms of commission and most Banks will take back the commission if the loan is repaid within two years. If your situation dictates a non-Bank solution, there may be fees involved as commission is either reduced or non-existent. It is best to get all terms of the proposal in writing upfront so that you can make an informed decision.
IS A FIXED INTEREST LOAN A VIABLE OPTION FOR ME?
To get a feel of the different types of loans available and what your prospective Broker is like at giving advice, ask some basic questions. Benefit of fixed rates over floating rates, ability to overpay, ability to overpay and then take back the extra payments for example. You then understand how and why a Broker will recommend a structure tailored to you. So if you were to ask about fixed rate loans you will learn more about this type of mortgage and also initiate a discussion with your Broker about important details and whether or not this type of mortgage is right for you. At iLender we call this ‘value add’ as it’s you will look after, not the Bank.