The mortgage brokering community only acts as filter

Question

I have purchased an apartment in Auckland (good location - harbour view) for the sum of $217,000, freehold. Settlement is due on completion i.e. early January 2006.

At present I have $50,000 (this includes my initial deposit).

I would appreciate advice from you as to where I should consider the best mortgage deal possible i.e. banks? through a broker? or perhaps through Kiwi Bank for the best flexible rates

Yours sincerely

JENNY

Answer

Jenny, I cannot give specific direct advice without full details of your situation as you would understand, however I'm happy to be retained as adviser/ client relationship...if you wish.

But.... put simply, why would anybody pay for advice on how to borrow money when all the main providers have staff retained to do just for you and are fighting tooth and nail for your business?

The mortgage brokering community acts as filter to the main banks and a number of insurance company based funding providers plus a range of avenues of funds for the more difficult cases, low or no deposit and impaired credit status borrowers... they have no competitive advantage price wise...for the client.

I suggest checking out Kiwibank, HSBC and TSB Bank, plus your own bank if not among these.... take the cheapest option you can get.. However watch for expensive add-ons like various insurances.. Stay away from them or a least make sure you carefully compare costs and terms (and of course presuming you have need). And be careful of fixed rates as they are not always in the client’s best interest.

Original Article published June 2005