Mortgage broking is an interesting service for people wanting to buy properties. For a start, their services are almost always free, with the only real exception being the customer only wants professional advice or professional assistance to adjust a bank loan. The reason that mortgage brokers services are almost always free is simply because they get paid a very sizable commission from the bank or non bank lender that they arrange the loan with.
Most customers go straight to their bank to arrange the mortgage, but in New Zealand around 40% of all mortgage borrowers use a mortgage broker. The reasons people use a Wellington mortgage broker (source) are numerous, including that they don’t like or trust their bank, their bank may have turned them down for a mortgage, they don’t believe they are getting the best deal from their bank, they don’t know how to fill out the application properly, and in many cases they know or have heard about the mortgage broker and trust their independent and competent advice.
Many customers are surprised and delighted when they discover that the mortgage broker service is free, and while this aspect of their service genuinely helps mortgage brokers to gain clients, it also means that many clients don’t take their services as seriously as they should or are not totally committed. As a result the typical success rate for mortgage brokers in terms of actually arranging mortgages and energy commission is around 30% of all new clients. Mortgage brokers at www.NZMortgageBroker.net simply have to take the statistic into account when planning the cash flow for their business.
Customers of mortgage brokers should not be concerned about whether their particular problem is too difficult or messy for the mortgage broker, and should still use their services and should still expect a good service. That said, customers should also try to make certain that the broker they choose has a good reputation and is likely to be able to assist them for their particular problem. Some mortgage brokers specialise in certain areas such as solving difficult cases that banks won’t touch, and while the mortgages they are arrange will inevitably be more expensive then the equivalent Bank mortgage they should still be able to arrange the finance and solve the customer’s particular problem.
Other brokers tend to deal only with the traditional Mum and Dad borrowers, and in most cases this will be easy money for the mortgage broker as the mum and dad customers will generally easily qualify for a loan and really only just need assistance to fill out the application forms and get the best deal.