There are a lot of myths out there about what Mortgage Brokers do and don't do, how we make our money and how relevant we are.
While we're on lockdown I thought it would be a great time to dispel a few of these myths, explain a bit more about what we do and how our business operates.
Myth #1 - Aren't brokers just middle men costing you more money?
Despite what some banks would have you believe it doesn't cost you anything to use a broker. Our service is free because the banks pay us and that cost is included in their overall funding model.
But how does that work?
Well the banks only pay us when we bring them new business, whereas they pay their employees every week. So it's a fixed cost they have when they do new lending. Because we fill a job that they might otherwise be paying their own employees to do they make some savings there an essentially pass those on to us. They will also pay us a small amount for doing other things their staff might normally do like re-fixing your loan or helping with structures.
Myth #2 - You only need a broker if the bank says no
That's crazy talk! Our clients range from high paid CEO's with multi million dollar homes through to brand new apprentices buying their first home. The reason's to use a broker are numerous but I think our tagline "Options, Advice, Service and Price" sums those reasons up best.
- Options - Are you sure your bank is giving you the best mortgage? It's not like you do it every day and just because you like the colour of your bank or you've been with them for years it doesn't mean they've got the best deal for you. Times change and so do banks so what worked once may not be the best now.
- Advice - Mortgages are what we do. There isn't a structure or option we've not worked with and we make sure you get the right advice specific to you. Whether that's how to pay your mortgage off faster, or to work around the way you make your money or simply to make things as cost effective as possible. We're not afraid to make the calls and tell you what we think... we may not always read our crystal ball right but we'll always ensure the advice we are giving is for you and we'll stand by it!
- Service - Because we're a small company we value giving you individual service. We make it work for you, it's not simply a case of booking an appointment as we've got an online service (www.onlinemortgage.co.nz) and can visit you at home or work. You'll work with your adviser (Adam, Claire or Greg) and also have the administration support of Hannah, Flo, Amber and Renee to ensure there is always someone there to meet your needs and answer your questions. A team approach with shared information means a better result for you.
- Price - Firstly we're free, so why wouldn't you give us a go? Secondly because we're not tied to any one option we can find you the best deal in the market. Even if that's just doing the running around to keep your current bank honest it all helps. To think if we saved you .20% on a home loan of $500k that's $1000/year. A pretty handy holiday right there!
Myth #3 - All you bankers and brokers are boring suit types and don't walk the talk
Anyone who knows me (Adam) will know that's not the case. I haven't worn a suit since I started My Mortgage in 2012 (except maybe to my wedding). But it's not about the fact you'll find me in shorts and jandals.. what's more important is that we're walking the talk.
All of our advisers have built houses so understand construction finance. We're all relatively young so remember what it's like to buy our first home. Adam has been investing in property for 15 years so understands the ins and outs of financing that market. We're real people who are out there doing it ourselves and we think that's important. We don't see you as a number either, we want to make sure we understand you so that we can give you the right advice for your unique set of circumstances.
These are the three common myths we get thrown at us but we're happy to dispel any other myths you may have heard about Mortgage Brokers. Get in touch with us if you'd like to discuss anything about getting a mortgage or your current mortgage. We're here to help!