Adviser smiling

The benefits of using a mortgage adviser (commonly called mortgage broker)

Most New Zealanders do not use a mortgage adviser (often known as a mortgage broker) to arrange their home loans. This is because when looking to borrow money for property, most people don’t realise that a benefit of a professional’s help can result in them getting the best deal for their mortgage. In fact, using a mortgage adviser could save you tens, or even hundreds of thousands of dollars over the course of your mortgage term. Below are six advantages of using a mortgage adviser to help you obtain a mortgage.

1. It’s free

Milestone Direct receives commission from the banks. This allows Milestone Direct’s mortgage advisers to provide this service completely free to you!

2. We do what’s best for you

Milestone Direct’s mortgage advisers are also Authorised Financial Advisers, which means that they have to place your interests first. No matter how it impacts them, they will make the decisions that are best for your personal situation – not what will put more money in their own pockets. This may not be the case for other mortgage advisers.

3. We save you money

Because mortgage advisers deal with the banks on a daily basis, they have more power to negotiate than you do, which means that they have access to more competitive interest rates. Milestone Direct's mortgage advisers are authorised to work with multiple banks, and because they do this every day, they have a good idea of which banks currently offer the best rates.

On top of this, they are experienced in choosing the correct loan structure for your personal situation to ensure that you are paying your mortgage off as quickly as possible. Mortgage advisers can save you from paying a lot of money for fees – depending on your situation, they may be able to reduce or fully waive some of the fees that banks usually pass on to customers (such as application fees).

4. We do the work for you

When applying for a mortgage without an adviser, you have to send in multiple applications to individual banks. A mortgage adviser will do this for you, meaning that you just need to send one application, and they will compile specific information to send to each bank. From here, they will liaise with the banks, so you don’t have to spend a lot of time going back and forth with them yourself.

5. Experience

Advisers are aware of the different rules for each bank, meaning you do not have to do the research yourself to find a bank that will accept your financial situation. This means they are also able to help you weigh up the pros and cons of different lenders and loan structures.

Advisers know all the products and grants that may be available to you, such as a Welcome Home Loan or the KiwiSaver Home Start grant, which first home buyers may be eligible for. Products like these can make the process of purchasing a property a lot easier, and an adviser can help you get access to these.

If you aren’t in a position to purchase a property, a mortgage adviser will be able to tell you this before you send in an application that may get rejected and damage your credit score. They will also be able to tell you how you could work to improve your situation, and give you an idea of when you may be in a better position to purchase a property.

6. Reduced stress

A person looking to purchase property is probably already stressed enough with all the things that need to be done before their mortgage settles, but a mortgage adviser will do a lot of the work for you – letting you relax a little.

Mortgage advisers are on your team. They are there to help you through the process every step of the way – from getting pre-approved, through to the settlement of the property. They are also able to explain the jargon used by the banks, so that you have a clear understanding of each step along the way.

The bottom line

Mortgage advisers can save you time, stress, and money – and you don’t need to pay a cent for their services. Use the form below to get in touch with us and speak to one of our mortgage advisers if you’re interested in having professional help to purchase your first home, an investment property, or re-examine your existing lending.