Mortgage Brokers are an intermediary between you the borrower, and the bank or lending institution that ultimately loans you the money. A mortgage brokers job is to get you the best deal on a loan.
This will ultimately be dictated by both your own requirements and how well you "shape-up" as a good security to a potential lender.
A mortgage broker can save you a lot of time hunting for the right mortgage. They have access to a large amount of data from many banks. Think of a mortgage broker as being like someone who could run around all the banks and come up with the right mortgage for you.
Many mortgage brokers advertise in local, daily papers, and also suburban papers. They are listed in the yellow pages under "Mortgage Brokers". Many of your friends or associates may have used a mortgage broker in the past. Don't be afraid to ask them who they used and if they recommend their services.
The most important thing is to make sure that you get a mortgage broker who is committed to working in your best interest. That is to get you the best mortgage deal, based on your criteria, and hopefully for the lowest cost in relation to the loan interest rate and any application or ongoing fees.
Look for a mortgage broker who is a member of the Mortgage Brokers Association of New Zealand. This means that they are a member of professional body, and thus are subject to rules and standards in relation to their service provision and ethics.
Remember that the broker does not get paid until the deal is done and you have signed on the mortgage document. Do not take the easy way out by immediately adopting their first suggestion. Ask why, how, how much, and as many other questions as you feel necessary until you are completely satisfied that you are getting the best deal possible.
This is the best part! A mortgage brokers service normally costs you nothing. They make their money by charging the chosen lending institution.
