What is a mortgage broker and what do they actually do?

In simple terms, a mortgage adviser organises and manages the process to obtain a mortgage loan from a lender on behalf of a client.

They are the link between the client and the chosen lender. They ensure your loan is completed smoothly through to settlement whether it is a refinance or a purchase.

What are the benefits of a mortgage adviser?

Using a mortgager adviser opens up the choice of lender options to you be it a bank or other financial institutions. More choice can provide better options to benefit the client for a more effective mortgage loan. Mortgage advisers can have greater negotiating power with lenders than a client to achieve a lower cost product.

Mortgage advisers are independent and impartial from the lenders and therefore provide advice and recommendations to their clients that are in the client’s best interests.

By using a mortgage adviser, the client saves time as the mortgage adviser does all the work for them and keeps them updated on how their mortgage application is progressing.

Who uses a mortgage adviser?

Whether you are a first home buyer or a seasoned investor, mortgage adviser can help to ensure you are correctly structured to meet your financial goals.

Does using a mortgage adviser cost?

It does not cost to use a mortgage adviser as lenders pay mortgage advisers for procuring business on their behalf, so it makes sense to use one.

What is refinancing?

Refinancing is when a new loan is used to payout and close an existing loan. This is normally done to receive a lower interest rate or repayment type and it normally involves one lender paying out another lender.

Can I use my Kiwisaver to purchase a property?

To be able to withdraw KiwiSaver funds to purchase a property you need to meet the following criteria:

1. You can withdraw all of your KiwiSaver apart from the government’s $1,000 kick-start payment

2. You need to have been a KiwiSaver member for a minimum of three years

3. You need to be over the age of 18 to be able to withdraw the funds

4. The property you are purchasing needs to be your first home and you cannot be purchasing an investment property