How to Use a Mortgage Broker

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.

Kelly Walker, mortgage broker

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 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.

How The Mortgage Broking Sector Works

The New Zealand mortgage broking sector is basically divided up into a small handful of very large powerful companies, and a large group of small and independent broking firms.

Brittany Parr is starting her new career as a mortgage broker
Brittany Parr is starting her new career as a mortgage broker

The large companies will have a team of mortgage brokers Gisborne, often a team in every main centre, and they will have spent a lot of money on their brand and on insuring that they get a lot of new business via the Internet. The small and independent mortgage broking companies are not in a position to spend the large amount of money necessary to get themselves ranked high enough to win a meaningful amount of business over the Internet, and these companies can be either small teams of brokers or even individuals operating out of the family home. Their strategy for new business is simply to build and leverage their networks to generate referrals and repeat business.

The large mortgage broking companies do not necessarily have the best brokers in their teams, and in fact this can often be definitely not the case. The brokers they do have can basically do the work, but on the whole that’s all they need to do, as the firm supplies them with new business day in day out. These brokers can become very comfortable, because while they have to pay a significant proportion of their commission to their parent firm, they are rewarded with a constant stream of work and all they have to do is process this.

These companies offer have so much new business coming in via the Internet that they can afford to reject all except the most straightforward clients, which means that their brokers often do not get any real experience in handling difficult and complex cases. The companies will often use administrative staff to pre-screen any calls, to make sure that the new customer is going to be a “slam dunk”.

Unfortunately for brokers working in these firms they are generally tied to a very tight contract with the parent company, that means if they leave the firm they are not allowed to do mortgage broking work anywhere in New Zealand for 6 months and in their home city for 2 years. These are very onerous terms, but they seem attractive to the new broker when they sign up, simply because they expect to get a very good income in their new job. However the work can become tedious, and they can begin to see all sorts of problems with the company that they are unable to fix, but if they choose to leave then the penalties can be harsh.

Independent mortgage brokers Bay of Plenty on the other hand out of necessity do pretty much any work that comes their way, and so they get good at finding smart solutions to difficult problems. They have to work constantly at building and maintaining theirt private networks to make certain they are continually getting a supply of referrals and repeat business.

Every modern mortgage broker must have a good website, and it is frustrating for the vast bulk of the independent mortgage brokers to know that their website is only there as an elegant business card as it is not actually winning them any business at all simply because it is not visible to anyone who searches on the Internet for a mortgage broker. The only companies that benefit from Internet searches are those that have invested a lot of money to ensure that they are ranked number 1 or 2 in Google search.

Mortgage Broking as a Career

Mortgage broking is definitely a worthwhile career for those who are prepared to work hard, study hard and be very focused and determined. Mortgage brokers Manawatu are well legislated in New Zealand, and are required to have passed difficult financial examinations and are required to be registered plus belong to a recognised dispute resolution process and complaints resolution process. It is not an easy industry to break into simply because it can be a very lucrative business for those smart enough to know how to operate effectively, and therefore there is a lot of competition in the industry.

Mortgage brokers Nelson can make a very high income, simply because they are paid by commission at around 0.65% of the value of the mortgage that they write. A competent mortgage broker can easily make an annual salary of over $200,000 per year, although they will almost certainly need to belong to one of the large franchises. Large franchises do take a large cut of the commissions that are paid to the mortgage broker, but they also supply the broker with a lot more clients than they would otherwise get by operating independently.

The actual work arranging a mortgage for a client is generally only a few hours, and probably averages around 3 to 5 hours per mortgage, no matter the size of the mortgage. A brokers income is only really limited by the volume of clients they process successfully and the value of the mortgages they write, and is almost never limited by the available hours the broker has to write mortgages. For an independent broker who has to find their own clients most of their time will be spent on this marketing and sales activity.

The key aspects for a successful mortgage broker is not only the ability to be able to correctly advise the client and arrange a mortgage for them, but also their ability to win new business again and again. independent brokers will need to have a good source of referrals or repeat business, but brokers in a large franchise will generally be fed leads from the franchise.

A disadvantage for the brokers in a franchise is that they can feel very restricted by the range of work they get done and by the amount they must pay to the franchise owner, they can often feel like they are working on a treadmill. Independent brokers can have a much more varied workload, but they also need to have a good marketing and sales operation to ensure they have ongoing business.

Building a New Home: Why New Zealand Home Buyers Have It So Good

Many new home buyers in New Zealand purchase their houses off the plan from a developer. They are required to make a deposit up front, and then to make payments at certain milestones along the build process including a final payment once the house and grounds has been completed. This is quite a different process then simply buying a new house that has been put up for sale by developer, because in this case the developer has had to take all the financial risk and borrow using short-term money until the house is sold. At this point they should start looking for a good mortgage broker to help them.

Liz Smith, professional mortgage broker

Generally when builders are courageous enough to take on the additional debt while they build a house, the reason for doing this is because it is substantially more profitable. A finished completely new house is substantially more valuable then a house that has yet to be built, and can command a significantly higher price simply because of the certainty that the house exists and it is in a wonderful new condition. The Builder knows that if they can sell the house in a buoyant market within a certain time frame then the cost of the temporary finance will become inconsequential, and their profits will be significant.

Developers building a number of homes in a new subdivision will need to pre-sell the houses before they start building each house, simply because this will reduce the overall financing costs. To get things rolling the developers often need to price the first few houses lower so that they get buyer’s on board quickly. Once potential buyers see that houses are actually starting to sell in a new subdivision then the market wakes up and a lot more buyers will come on board and compete for the remaining houses.

Mortgage brokers Christchurch are vital to enabling both of these processes, as they will have been involved in gaining short term finance for both the developer and the builder, and will also have been involved in financing the new houses for the home buyers. A smart mortgage broker will make sure that they look after their developer or builder, is this can mean that the developer or builder will recommend their services to the home buyers. It’s common in many new subdivisions for there to be a recommended mortgage broker for the home buyers.

While the banks to get involved obviously, it is mostly using the mortgage brokers Canterbury as intermediaries.

The Great New Zealand Tradies Shortage

New Zealand has a widespread problem from one end of the country to the other  which is a general shortage of good traits people. This shortage is fundamentally due to poor planning over the last few decades buy both government and the trade sector, and an inability for the government in particular to recognise  how vital the trade sector is to the growth of the New Zealand economy.

 The problem is that young people have either been actively discouraged or not proactively encouraged to enter into a trade, and instead a lot of emphasis has been put on the importance of getting a good university degree. The trouble is that trades have generally been regarded as a lower status then professional work, which is ironic given that in the end it is the trades people that are responsible for delivering the final result of any cleaning work carried out by professionals. It is the trades people that are responsible for public health and safety on a massive scale, and their input is massively devalued by Society.

This is even more ironic when you consider the advantages for Tradies. They can leave school straight into an apprenticeship and  be earning good money while there University counterparts a building up massive study debts. Apprentices attend high level courses for two to three days every week and  after 2 to 4 years they can have a good qualification that entitles them to be able to do more skilled work and eventually to set up their own business.

Apprentice builders for example can even start building your own home on the side, although government regulation prevents them from building more than 2 homes for themselves over 18 year. However the profits they can accumulate from building your own home can enable them to generate significant wealth, and get a big head start in this area over their University qualified peers. In the current market where there is a widespread shortage of good trades people of all types, prices to householders are naturally higher then otherwise, since there is no competition. Trades like plumbers builders and electricians Gisborne can really benefit from this shortage, with reference mean another good example.


The challenge for the government, if they want tens of thousands of more new homes in Auckland for example, is to put in place policies that actively encourage young people to go into apprenticeships. This is very sensible, particularly  as there is a distinct sector or young people who are just not suited to university work. Need good thing about apprenticeships in a trade is that there will always be work.

Sucking at Tinder Like a Boss

I suck at Tinder.

I don’t know what it is. Is it because my photos aren’t professional? I’m not ugly. Is it just that I live in a small town?

Girls who I match with generally don’t text very regularly. I get a few girls who think I’m really nice but don’t meet up for whatever reason, but most of the time the conversation lasts about 5-6 texts back and forth (stretched out over a few hours) and then nothing. Ghosted.

Should I be more sexual? Should I have a cheesy pickup line? Maybe they’re getting bored because I’m not flirting with them off the bat but just trying to get to know them. I probably shouldn’t ask them what they do for a living.

I don’t want to say anything sleazy on my profile though, because there are girls I know – female friends – who are active on Tinder, and I don’t want them to see my profile say anything creepy. I know they’re there because I’ve seen their profiles. I swipe right on them because even though they’re only friends, I still want to know if they would swipe right on me.

Some days I only get to see 5-10 girls on the app, and then I run out of girls in my locality. I have to adjust my settings to accept 18 year olds and 50+ year olds, and women who are too far away to date. Even then it will often run out on me. What am I doing wrong?

When I was in Shanghai I would match with half a dozen girls every day (on TanTan, the most popular Chinese dating app), equating to a date about every second day. Unfortunately I was incompetent at being with women having only just come out of a long-term relationship, and had no idea how to flirt or pick women up. I think the key to my apparent ‘success’ (with getting matches, not with getting laid because I didn’t get laid at all) was because there were so many girls in that city (Shanghai has a population of 24 million), and I was a white guy. Many Chinese girls in China will swipe right on just about every foreigner. Damn, I swipe right on almost every Asian girl I see, they’re gorgeous. Appeal of the unknown, I suppose.