If you are in the market for a new home, you may be wondering if you need to use a mortgage broker in NZ. Mortgage brokers are professionals working with many lenders to find you the best mortgage terms possible.
While they can be a valuable resource, you need to be aware of some of the tactics they may use to get you to sign on the dotted line. Here are 5 mortgage broker tactics you need to know so when you need to find a mortgage broker, you will be well aware of their tactics beforehand:
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Create Urgency by Telling You Homes Are Going Fast:
Sometimes a mortgage broker will try and create urgency by telling you that homes are selling fast or that you need to act fast if you want to get into certain neighbourhoods. This is often done because it makes them feel important and makes it seem like they are working hard for their clients when in reality, they may not even know what’s available in your area or how long it would take for a lender to approve your loan application!
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Oversimplify Details About Your Home Loan:
Mortgage brokers have access to many different types of loans and can help you find the one that works best for your situation. It’s important to ask questions and get as much information as possible from them before signing on the dotted line!
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Pressure You with A Time Limit for Decisions:
There is no reason why a mortgage broker should rush you into making this important decision. Take all the time you need to research lenders and get quotes — don’t let anyone pressure you into signing before you’re ready!
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Not Be Clear that They Work with Many Lenders:
Most mortgage brokers work as independent contractors and are not required to disclose that they work with multiple lenders. This means they don’t have a single company that they represent and instead go through a variety of companies.
While this doesn’t necessarily mean anything negative, it’s important for consumers to know who they are dealing with and what their motives are before making any major financial decisions.
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Push Products to Meet Sales Quotas:
A common practice among mortgage brokers is pushing products that pay them higher commissions than other options available to clients. This can lead consumers into high-cost mortgages or other products that aren’t in their best interest over lower-cost options that could save them thousands in interest payments over the life of their loan agreement.
Conclusion:
A mortgage broker in NZ can be a good resource, but it’s helpful to know some of the tactics they use to get business.