Why Use a Mortgage Adviser?
When meeting with a mortgage adviser, it's important to ask questions that will help you understand your options, make informed decisions, and feel confident about your mortgage.
Here are some of the most common questions I get asked and why they're important:
1. How much can I borrow?
Why: When you are prepared you are empowered in a situation so you know what you can afford to buy. There can be a huge difference in the bank policy which means one banks answer can vary with another one by up to $100,000 in some cases and that can mean the difference between buying or missing out. Mortgage advisers bring options to the table and advice to help you navigate the journey to home ownership.
2. What interest rates do you offer, and what factors affect my rate?
Why: Interest rates directly impact your monthly payments and the total cost of the loan. Understanding what rate you qualify for and what might improve it (like a higher credit score or larger deposit) helps you plan accordingly.
3. What are the fees and other costs?
Why: Fees and property checking (LIM Pre-contract disclosure and title) with lawyers and conveyancing costs can add up quickly, and they vary between lawyers. Understanding these costs upfront prevents surprises and allows you to compare the total cost of the home purchase process.
4. What will it cost me Can you provide a loan estimate?
Why: A loan estimate provides a detailed breakdown of the loan terms, interest rate, monthly payments, and other costs. It’s a tool you can use to prepare for when you own the home and have to manage the budget.
5. What is the minimum deposit required?
Why: Different loans require different down payments, typically ranging from 5% to 20% or more. Knowing the minimum down payment required helps you understand how much cash you need upfront and whether you might need help from family and how to structure that help.
6. What are the requirements to qualify for this mortgage?
Why: Understanding the qualification criteria (credit score, debt-to-income ratio, employment history, type of income e.eg sales commission vs wages etc.) helps you assess whether you’re likely to be approved and if you need to take steps to improve your financial profile.
7. Can I lock in the interest rate? If so, for how long?
Why: Interest rates can fluctuate. Locking in a rate protects you from increases while your loan is being processed. It’s important to know if this option is available and what it entails.
8. What happens if I decide to pay off the mortgage early?
Why: Some mortgages have prepayment penalties for paying off the loan early. Understanding these penalties helps you avoid unexpected costs if you plan to pay off your mortgage ahead of schedule.
9. How long does the approval process take?
Why: Knowing the timeline helps you plan accordingly, especially if you’re in a competitive housing market or need to bid at auction or make an offer by a specific date.
10. What documents will I need to provide?
Why: The mortgage approval process requires substantial documentation. Understanding what’s needed in advance helps you gather everything quickly and avoid delays.
11. How do you handle rate changes during the application process?
Why: Interest rates can change while your application is being processed. Things like Kiwisaver balances can drop when the share market fluctuates as we have just seen. Having a plan to navigate these changes ensures you’re not caught off guard by a higher rate than expected.
12. What will my family budget look like?
Why: Owning a home comes with your mortgage costs of principal, interest, and rates, and insurance. Knowing the full amount helps you budget accurately. We can introduce you to a money coach to build a plan so you know what the family spending plan will look like.
13. How can I prepare for a mortgage?
Why: Set up a separate account and put the amount you would likely have to pay on a mortgage into it for 3 months and see how this impacts your lifestyle. Life can be unpredictable, and it’s important to understand the consequences and options available if things get tight.
14. Is there anything I should avoid doing during the mortgage process?
Why: Certain actions (like opening new credit accounts, starting at After Pay or making large purchases) can negatively impact your mortgage approval. Understanding what to avoid helps ensure a smooth process.
15. Why Use a Mortgage Adviser instead of just calling my bank?
As Mortgage Advisers, we take care of all aspects of the application process and our application form is accepted by all of the lenders. We stay up to date with which bank prefers which type of application and which type of client – giving every type of application (no matter how big or small) the best chance for approval. A bank may review your financial situation, but will only present options that they have on offer. And this may not be the best offer you can get. They may even turn you down and not offer any hope.
An experienced mortgage Adviser has more negotiating power than a single person and is likely to get a better outcome . You would also have to spend a lot of time researching all the options like interest rates and fees, from all the different lenders. You have a lot of other decisions to make like where to buy, what to buy, organising the move, insurance etc and may not have the time or mental energy to get into negotiations with several lenders.
We also know what the bank is looking for in your bank statements in terms of account conduct and are aware how much of a difference credit card limits and other short-term loans can have an impact. We can help consolidate debts and arrange better terms on things like car loans which can make the difference between an approval to buy a house or not
The fact is that one Bank may lend you tens or even hundreds of thousands of dollars more, on the same day given the exact same circumstances, than another Bank. A good adviser will make sure that they have an overview of which Bank will give you the most on any given day.
16. What do you do that I can’t do myself to enhance the chance of success?
A good adviser also knows how to present the application to ensure it has the best chance of getting approved. As well as judging the best Bank to go to we know where it should best go within the Bank – for example, it may be that a residential application best goes to a commercial contact based on an aspect of the information provided. It’s our job to do everything to make sure it gets approved.
Tricker cases require specialist advice. First-home buyers relying on KiwiSaver funds or the bank of mum and dad, investors, and buyers dealing with code of compliance issues can benefit from dedicated advice.
We're used to seeing these issues day-in and day-out. We can give you impartial advice on which banks will lend on different property types, get the right loan structure, add value, and help you figure out what you can and can't do.
17. Will you look after us after the home is purchased?
Customers want to deal with a single person. They want someone who knows their history and can deal with them on an ongoing basis. We say we are the modern-day personal bank manager. We know our clients intimately, and people don't feel like the banks know them that way anymore.
18. How does a Mortgage Adviser Save you money?
An experienced mortgage adviser will get the best home loan option for you. They are not tied to any particular bank or lending company, so they will review all that is being offered and work out which one is the best to achieve your goals – which may include:
Getting the best possible interest rates to reduce your repayments
Paying off the loan as quickly as possible
Using a home loan to finance other purchases
Making sure you get enough money for what you want to purchase.
We are available after hours which is usually when you need an answer and have access to great deals for lawyers, building inspectors, valuers, insurance advisers, renovation experts who can quote on anything from cosmetic renovations to additional rooms, Property value reports to name a few.
A mortgage adviser is on YOUR team and will negotiate for your best interests armed with experience and knowledge.
20. How does a mortgage adviser save you time?
Applying for finance can be complicated. We know exactly what information a bank will need and make sure you get all that together before the loan application is made.
There is no need to shop around at each bank or financial institution and do all the comparison work, read the fine print or negotiate the deal yourself.
Your adviser can also help pull together the necessary paperwork for your loan application.
21. How does a mortgage adviser reduce stress around getting a mortgage?
You probably have other things to worry about than filling in forms and reading the fine print. It is stressful trying to work out legal jargon, making sure you aren’t missing any important information like interest rate increases, fees and other conditions.
Let an expert do it for you so you can get on with finding that forever home!
22. How do you choose which mortgage adviser?
Choose an adviser with experience under their belt, along with experience in the banking and/or financial industry before they became an adviser.
Read the online reviews and see if the stories resonate with you.
Also, your adviser will need to know some quite personal details about your finances. You need someone who you feel comfortable with, communicate well with and who you can trust.
By asking these questions, you’ll gain a clearer understanding of the mortgage process, the costs involved, and the options available to you. This will enable you to make a well-informed decision that aligns with your financial goals.
Google Business Reviews: what my clients say!
Karen Cheng
⭐⭐⭐⭐⭐ Stephen helped us into our first home.Cool, calm, and collected under tight time frames and in a different city, Stephen partnered with us by finding a bank who would lend for the particular type read more
Emma Harney
⭐⭐⭐⭐⭐ A huge thank you to My Money for helping us to secure a mortgage on our first home. We weren't sure it was going to be possible on our budget and we're absolutely thrilled with the result they got read more
Aaron Nicholls
⭐⭐⭐⭐⭐ I have used Stephens' services personally and recommended him to my clients many times over the last ten years and he is always professional and able to help. He can be relied on every time to do his read more
Jacqueline Batley
⭐⭐⭐⭐⭐ We contacted Stephen through a recommendation from my daughter and son - in - law who Stephen was organising a loan. We found Stephen to be effective and knowledgeable, he was very easy to deal with. Read more.
Danielle Hancock
⭐⭐⭐⭐⭐ Stephen has been great with helping us maximise our ability to put our equity to work. He has succeeded where others have failed and he is always friendly and supportive. It is great to work with Stephen and I highly recommend him.
Alaina Blair
⭐⭐⭐⭐⭐ Stephen is a fantastic broker. Stephen worked tirelessly to ensure we achieved the outcome we wanted. We recommend if you are looking for someone to make the whole process simple and ensure great rates give Stephen a call today!
Contact My Money
Email: stephen@mymoney.net.nz
Phone: 09 377 4433
