How to choose the right mortgage broker

Buying a home is a big step in anyone’s life. It’s often the biggest purchase of our lives and a mortgage is typically our biggest financial commitment we’ll ever have. That’s why it’s so important to find a mortgage broker that’s right for you.

Mortgage brokers work as an intermediary between you and the bank, or lending institution that ultimately agrees to loan you the money to buy that dream house.

They’ll help you save time searching for the right mortgage. With access to large amounts of data from many banks, they have knowledge of interest rates and application criteria for different lenders. Think of a mortgage broker as someone who can do all your dirty work - running around to several banks and lenders trying to present you with the right mortgage.

The best thing about mortgage brokers is that they don’t cost you a dime. You don’t have to pay them for their services directly, they make their money by charging your chosen lender.

With that being said, you still need to find a quality mortgage broker who will do the best job for you. Here’s what to look out for:

They’re committed to your best interests

The whole point of hiring a mortgage broker is to get the best mortgage deal. Make sure to find one that is fully committed to your best interests. Homeward Found says a mortgage broker’s goal should be to find you the best mortgage deal, based on your criteria, and hopefully for the lowest cost in relation to the loan interest rate and any application or ongoing fees.

They’re a member of the Mortgage Brokers Association

Look out for a mortgage broker who is a member of the Mortgage Brokers Association of New Zealand. This gives you more security as it means the broker is a member of a professional body and is thus subject to rules, standards and ethics when their providing their services to you.

They’re service is top notch

The number one criteria you’ll want to look out for is customer service. Many mortgage brokers can do the same job for you, but it’s their commitment to you and your needs that will set them apart. The best way to find out what they’re service is really like is through reviews from their previous customers. Check if they’ve got any Facebook reviews or ask around to find out which brokers people are speaking highly of.

Always ask questions

It’s important to remember that a mortgage broker doesn’t get their paycheck until the end of the deal when you’ve signed on the mortgage document. Don’t take the easy way out by agreeing to their first suggestion. Always ask questions - why, how, how much, and as many other questions as you feel necessary until you feel completely satisfied with the deal they’re presenting to you.

To help you with your hunt, check out the Top 10 Mortgage brokers in Auckland according to Yelp.

On the list include, Approved Mortgages, First-rate Mortgages, Global Finance and more.

If you’ve got your mortgage broker sorted and are starting the hunt for your dream home, check out our House & Land packages.