Disclaimer:
The information on this website is for general guidance only and does not constitute financial or investment advice. Always do your own research and seek personalised advice from a qualified financial adviser or mortgage adviser before making financial decisions. All investments carry risk and past performance is not indicative of future results.
Key Takeaways
- Engage early to shape your budget and plan.
- Advisers compare lenders and lending criteria for you.
- They guide pre-approval, structure, and settlement stages.
- Check credentials and fee disclosures before committing.
- Support is valuable for complex or non-standard cases.
In short, the answer is "Now … at the start of your home-buying journey." A mortgage adviser can serve as a valuable ally!
Embarking on the exciting journey of homeownership is a significant milestone in anyone's life. Whether you're a first-time buyer or a seasoned homeowner, the complexities of the real estate market can be overwhelming. One crucial decision that often arises during this process is whether or not to engage the services of a mortgage adviser, and when.
Why Use the Services of a Mortgage Broker?
Mortgage advisers are usually free and can save you a lot of time and money. Not all banks have the same lending criteria and whilst one bank may decline your loan another may approve it. Having a mortgage adviser working for you means that you only need to complete one application and then leave your adviser to shop around the banks to get your home loan pre-approval.
And in order to get the best rates, you really do need to shop around. Again, your mortgage adviser will do this for you! Whilst rates are important, ensuring that your home loan is structured well can save you thousands of dollars too!
TIP: If you decide to use the services of a mortgage adviser, check their credentials and experience to make sure you have an adviser who is qualified to help you. Mortgage advisers are now required by law to be registered. You can check to see if your adviser is registered by going to the Financial Service Providers Register.
Note: A broker should also disclose how they get paid, and that they are governed by the Privacy Act which means that your personal information will only be disclosed to relevant parties as part of the application process (ie Banks/lenders/Credit Agencies).
The Four Stages Where a Mortgage Adviser Helps
Stage 1: Early Planning
If you're just starting to think about buying a home, a mortgage adviser can help you:
- Understand your financial situation
- Assess your eligibility for a mortgage
- Provide insights into how much you can afford
- Understand what your hurdles are
They can also advise you on other support options for first-home buyers such as KiwiSaver withdrawal and low-deposit lending options (where available).
Stage 2: Pre-Approval Stage
Before you start house hunting, getting pre-approved for a mortgage can give you a clear idea of your budget. A mortgage adviser can guide you through this process, helping you understand the documentation required and explaining the terms of different mortgage options. They will take care of the paperwork for you and help move the process along.
A mortgage adviser is the go-between you and a lender, helping you during the entire process - from identifying your needs to the back-and-forth with your chosen bank. Your home loan expert's sole purpose is to support you through the process.
Learn More: Pre-Approvals vs Live Deals: What First Home Buyers Need to Know
Need personalised guidance?
Chat with a First Home Buyers Club affiliated mortgage adviser - no obligation!
Stage 3: Confirming a Mortgage Structure
Mortgage advisers have access to a wide range of lenders and mortgage products. They can help you compare interest rates, terms, and conditions to find a mortgage that best fits your needs.
Mortgages come in various types, including fixed-rate, floating rate, interest-only and more. A mortgage adviser can explain these options, helping you choose the one that aligns with your financial goals and lifestyle.
Navigating Special Circumstances:
If you have a unique financial situation, such as being self-employed or having a low credit score, a mortgage adviser can provide valuable advice on how to improve your chances of approval and secure a favorable mortgage.
Stage 4: Settlement
During the settlement phase a mortgage adviser can manage the handover, ensuring:
- All loan documentation is in order
- All necessary paperwork is in order
- Final steps are completed
- Enabling settlement to go smoothly
Frequently Asked Questions
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