A mortgage broker is a professional advisor who gives advice to clients around the options of obtaining a mortgage.
These options include not just the structure of the mortgage, but the pricing of the mortgage. By pricing, I’m talking about interest rates and products that are available, i.e. revolving credit facilities, offset accounts, fixed interest rates, floating interest rates. They’re all critical in structuring a mortgage to suit an individual’s needs, and everyone is quite different in terms of their short and long term goals, and a mortgage needs to be structured appropriately there.
The advantage of using a mortgage broker is that they will give impartial advice. They’re covering, and they have knowledge of, the mortgages available in the market. There are many providers now in New Zealand. So, a mortgage broker should be able to give you the advice to choose the appropriate product and bank or non bank lender for your needs.
For example, if you’re having a family, you would need to keep your payments low for a period, perhaps, and then review that again when two incomes are back in the mix enabling you to pay the mortgage off a bit quicker. So, it’s that impartial advice and knowledge of the market which are beneficial in using a mortgage broker to arrange your mortgage.