Are you currently in the market for a new home but feeling overwhelmed by the mortgage loan process? Navigating the world of mortgages can be complex and time-consuming, especially if you’re not familiar with the industry.
Finding the right mortgage product that suits your needs can make a significant difference in your financial future. This is where a mortgage advisor comes in as your trusted ally—someone who can simplify the process, save you time, and by getting competitive interest rates for you. In this post, we’ve provided valuable benefits of working with a mortgage advisor and why it’s a smart choice.
How You Can Benefit From a Mortgage Advisor
Using a mortgage advisor offers several advantages such as potential cost savings as mortgage advisors can find competitive mortgage deals. They provide convenience by handling paperwork and negotiations which saves you a lot of money, time, and effort.
An online mortgage advisor also minimises the need to travel to locations so you get information faster. The online process allows the mortgage advisor to approach several lending institutions with one set of documents so you don’t have to repeatedly fill out applications. Time is of the essence when putting an offer on a home. Having multiple options puts you in control of the process.
Lendal Mortgages works with over 27 lenders to give you the best rate and home loan for your needs. Unsure about your ideal property? We can arrange pre-approval for your mortgage, giving you clarity on your borrowing capacity. Shop for homes confidently with a pre-approved mortgage in hand.
What Does a Mortgage Advisor Do?
The best part about working with a mortgage advisor is that their main priority is to take care of your needs by looking at all the home loan options available to you.
A mortgage advisor serves as the go-between for financial institutions, real estate companies, and people who want to buy a home. Their expertise lies in working with the borrower and the lender and to help the borrower get approved for a home loan.
An experienced mortgage advisor will gather all the necessary paperwork and information that the borrower needs from the lender so they can approve their home purchase. The advisor gives your information to multiple lenders to see who comes back with the best offer.
Additionally, your mortgage advisor will have the ability to access a wide range of mortgage products and potentially better deals than you might find on your own. It also it reduces having to deal with multiple lenders.
Is it Worth Using a Mortgage Advisor?
A mortgage loan advisor offers valuable insights into the market because they have access to a wide range of lenders and products. They can compare various mortgage options, interest rates, and terms to help you find the most suitable deals.
When you connect with a professional mortgage advisor, you get advice tailored to your unique financial situation and needs. They consider factors such as your income, credit history, and future financial goals to recommend the best mortgage options.
Another important advantage of using a mortgage advisor is that they offer continuous support throughout the mortgage process, from the initial application to the final settlement. Your mortgage advisor has product knowledge of each lender and can give you their opinion on what product is best suited for you and your financial needs.
Do You Pay a Mortgage Advisor in New Zealand?
In New Zealand, most mortgage advisors are compensated by the lenders, not by the clients. When a mortgage advisor arranges a mortgage, the lender pays them a commission based on your mortgage value. Therefore, clients most of the time do not incur any direct costs for the advisor’s services.
What Are the Exceptions When It Comes to Fees?
On the other hand, there may be exceptions where a mortgage advisor might charge a fee directly to the client. This can happen in special circumstances, such as when dealing with complex financial situations, non-standard loans, or if the mortgage is particularly small. However, mortgage advisors will always be upfront about fees, so you don’t experience any hidden costs.
How Do Mortgage Advisors Get Paid in New Zealand?
Mortgage advisors in New Zealand get a commission-based payment. Once your mortgage is settled, you’ve received your home loan, and have bought your house, the mortgage advisor will get a commission from the lender. This makes it an ideal choice for home buyers who need assistance without the extra cost.
To give you peace of mind, mortgage advisors in New Zealand are always transparent about any fees or commissions they earn. They will disclose how they are compensated, including any commissions received from lenders. This ensures you’re fully informed about potential conflicts of interest and the advisors motivation. Here are ways a mortgage advisor is paid in New Zealand.
Commission From Lenders
As mentioned before, mortgage advisors are paid upfront by the lender when the loan has been approved. They will earn a certain percentage as they get paid a commission for every successful home loan. Banks set their own commission rates which may range between 0.6% and 1% of the loan amount.
Furthermore, some banks that offer lower upfront commissions may provide an ongoing reward to the mortgage advisor of 0.2% for every year you keep the same mortgage.
Potential Additional Fees
Here are certain scenarios where you may have to pay additional fees:
- In some cases, mortgage advisors may charge other fees. For example, if a mortgage is paid off or discharged within 27 months, you might incur a fee.
- Finance companies sometimes require a fee to be added to the loan instead of paying a commission to the mortgage advisor. Clients will be informed about these fees well before they are confirmed.
- If a client decides not to continue working with a mortgage advisor after receiving services, an adviser may charge an hourly rate. This ensures that the mortgage advisor is compensated for their time and effort even if the client does not continue with the mortgage or insurance product.
Mortgage Advisor vs. Bank: Discover How Advisors Provide Unbiased, Transparent Service
So why use a mortgage advisor over a bank? Well, one of the major benefits of working with a mortgage advisor is that they manage potential conflicts of interest by adhering to strict regulations and maintaining transparency with you. They are obligated to disclose any relationships with lenders and the commissions they receive.
Mortgage advisors prioritise your needs by offering unbiased advice and presenting a range of mortgage options from different lenders to ensure they act in your best interest.
Lendal Mortgages: Your Stress-Free Path to Securing a Home Loan
If you don’t want to go through the tedious process of dealing with multiple lenders, Lendal Mortgages can make the home loan process so much easier and cost effective for you.
Contact Lendal Mortgages today so we can find the best lenders in New Zealand for your home loan. We assist you with all the information needed to get pre-approved. What’s more, our mortgage advisors can give you details on how much you can lend for your dream home loan based on your income and credit score. With the help of our professional mortgage advisors, we’ll find the best loan that’s perfect for your budget.
