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What’s the difference between using a mortgage advisor and going directly to the bank?

In New Zealand, potential homeowners have two main options: approaching a bank directly or enlisting the services of a mortgage advisor. Let’s explore the difference between the two and help you make an informed decision that suits your needs and preferences.

The Bank Experience: When it comes to home loans, the first option that often comes to mind is approaching a bank directly. Banks are financial institutions that offer various financial products, including mortgages. Here are some key aspects of dealing with banks:

Familiarity and convenience: Many people find comfort in approaching their existing bank for a mortgage. They already have an established relationship and are familiar with the bank's processes and personnel. This can streamline the application process and make it more convenient for customers.

Limited product options: While banks offer a range of mortgage options, they are limited to their own products. This means you might miss out on potentially better rates and terms available from other lenders. It's essential to compare multiple banks to find the best deal that suits your financial situation.

Direct communication: Working directly with a bank means you have direct access to their loan officers and customer service representatives. You can ask questions, seek clarifications, and receive personalised guidance throughout the process.

The Mortgage Advisor Advantage: In recent years, mortgage advisors have gained popularity in New Zealand's home loan market. Mortgage advisors are professionals who act as intermediaries between borrowers and lenders. Here's what you can expect when working with a mortgage advisor:

Extensive market access: One of the key benefits of using a mortgage advisor is their ability to access a wide range of lenders and loan products. Advisors have relationships with multiple banks, non-bank lenders, and other financial institutions, giving you access to a broader selection of mortgage options. This can increase your chances of finding a loan that best matches your specific requirements.

Tailored expertise and guidance: Mortgage advisors are knowledgeable about the lending industry and keep up with market trends and changes in lending criteria. They leverage their expertise to evaluate your financial situation, goals, and preferences to identify suitable loan options. Their guidance can prove invaluable in navigating the complexities of the mortgage landscape.

Negotiation and support: Mortgage advisors can negotiate loan terms on your behalf, potentially securing better interest rates, loan features, and repayment conditions. Additionally, advisors provide ongoing support throughout the application process, including paperwork, documentation, and liaising with lenders, saving you time and effort.

Ultimately, the decision between a bank and a mortgage advisor depends on your individual circumstances and preferences. Consider the following factors to help you make an informed choice:

Time and convenience: If you prefer a familiar and streamlined process, approaching your existing bank might be a good option. However, if you value having access to multiple lenders and tailored expertise, a mortgage advisor can be beneficial.

Product range: If you are seeking a specific loan product or want to compare offerings from different lenders, a mortgage advisor's extensive market access can be advantageous.

If you’re still unsure which is the best option for you, I’m happy to have a no obligation chat about your circumstances and preferences to help you figure out the best option to secure your financial goals!

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