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Working With A Mortgage Broker

Posted by John Shaft on

When choosing a mortgage broker you can generally be quite comfortable that the broker is competent and effective in today’s market. To put it simply, they would not be in business if that  we’re not the case. It is very similar situation to the cafe market in New Zealand,  where it is virtually impossible to find a bad cup of coffee nowadays.

Consequently your main criteria for working with a mortgage broker is that they can drop everything and help you immediately, and you should find that most mortgage brokers can work with you no matter what town or city you are in. The Internet is a very effective information and communication medium.

A smart move before you first approach your chosen mortgage broker it is to do your numbers first to find out how much you need or would like to borrow, how much real cash you can lay your hands on for a deposit, how much you can afford to pay today and mortgage repayments, and how this ability to pay will change over time. There are good websites where you can calculate mortgage repayment rates and such like, and once and with his information you can then begin a sensible discussion with the mortgage broker.

Yes you are an investor then you should also research your ongoing tax obligations, as your mortgage broker may be able to suggest ways to structure the loan so as to minimise your final text bill.

Once you start discussions with your mortgage broker you should be prepared for challenge and possibly disappointment if they reality means that you will be very unlikely to get a mortgage of the size you’re wanting. Some mortgage brokers in Southland may have knowledge of available deals with certain banks,  but these may only be available for a short time and it may be Hit Or Miss whether you strike it lucky.

A good mortgage broker will not stop at the point where they cannot provide a mortgage for you of the size you want, but instead they will suggest a plan B or Plan C for example,  that may involve finding additional cash for the deposit to get over the banks hurdle, or may involve increasing your income temporarily, for example by taking a job if you are self employed.

Mortgage brokers in Otago are generally the experts in the field, and you should be confident that if there’s a solution they will find it, but similarly if they cannot find a solution then it is unlikely that others will.