Guide to Choosing a Mortgage Lender in Auckland, New Zealand
If you’re looking for mortgage broker Auckland in New Zealand, it should come as no surprise that you are not alone. With New Zealand’s tourism and residential population booming more every day, property costs are increasing and with it the need to mortgage a home.
A mortgage is a debt instrument that allows a property buyer to take out a loan in exchange for the title of a property and an interest to be paid back on the original loan. By applying for a mortgage, the applicant enters into an agreement, should the application be accepted, with the bank to pay back a certain portion plus a portion of interest on the loan each month (or however frequently is agreed upon.).
In this case a mortgage broker Auckland would create a legally binding document stating the terms of the mortgage. The mortgage agreement would state the length that the loan must be paid back in, the interest rate on the loan as well as the conditions under which the interest rate would fluctuate over time.
Before you choose a mortgage lender in Auckland, there are some things to consider:
1) Do you need a mortgage broker?
A mortgage broker can save you time and effort by doing most of the work for you when it comes to finding a lender. While that may seem like a no brainer, brokers earn their profits by arranging deals between the lender and the homeowner. If you are not careful, a mortgage broker could set you up with a lender that offers them the highest profit while not necessarily being the best mortgage for you.
Should you decide to go with a broker, it is important to research and make sure you have a mortgage broker you trust. Ask each ask potential broker to provide you with references from their past clients. If the broker will not or is hesitant to provide references, consider that a major red flag.
That brings us to the next thing to consider:
2) Ask Around For Advice From People You Trust
Finding a mortgage lender and/or broker is one of those things that many people have experience with. Since more often than not homeowners choose to mortgage their home, it is likely that your family, friends or neighbors have information regarding their mortgage lender sand brokers.
Even if you hear about bad experiences, it will let you cross possibilities off of your list and help you filter through the options faster.
3) What Size Lender Do You Prefer?
Are you someone that prefers more personalized customer service with the small pleasures of a lender knowing your name? Then a small lender is probably best for you. If you instead prefer to get the best interest rate you can, then a larger lender is most likely your best bet.
Small lenders are generally more flexible because they understand the importance of winning your business. If you have been denied a mortgage application from a larger bank, it is generally advised to apply with a smaller company. They also tend to have faster response times because, compared with their larger competitors, they have far less paperwork to sift through.
4) Use Your Real Estate Agent As An Asset
If you are purchasing a home through a real estate agent, often the agent will have good insight and connections to a mortgage broker. Going through a real estate agent whom you trust will help you feel more at ease and also, generally, cut down on costs. Finding an Auckland mortgage broker can be daunting so using a trusted real estate agent to guide you can make that process less intimidating while saving you money.
5) Use A Mortgage Rate Calculator Tool
Once you consider these factors and have answers to the questions, you can begin actively searching within those specific niches for the mortgage broker that best fits your needs.
The best way to find an Auckland mortgage broker is by using a mortgage lender calculator tool. Sights like Glimp help you search through hundreds of options FAST.
Glimp’s service is the best because it is FREE, searches New Zealand’s best deals and has an easy to view, easy to navigate interface. The platform is so simple, you can even toggle between several different versions or scenarios of your potential mortgage plan. With the simple click of a button, you can change your possible plan to reflect varying fixed income lengths, deposit amounts and more; you don’t even have to navigate off the page and back.
How does it work?
Glimp’s process is simple; with just a few steps, by filling in a brief form with financial details and information regarding the mortgage that you want to take out, you get results in just minutes.
Try Glimp for free now or read this example search to get an idea of the process:
Let’s say you are mortgaging a home for the first time. You will be presented with the options to either refinance or mortgage your home. For the sake of this example, say you select “mortgage” where prompted.
Now enter the answers to the questions “How much you would like to borrow?” and “What is your deposit?” The minimum amount to borrow is 700,000 and the minimum deposit is 100,000. To make things easy assume 500,000 will be the amount you borrow and 100,000 will be the deposit put down.
Once you have the information input, you’re done. Click submit and watch your results present themselves in seconds!
You will be directed to a single page with all of your options laid out in an easy to understand, complete format. You can even adjust your results with toggle buttons at the top of the page. Use the buttons to change the amount you want to borrow, the number of years you are contracted to pay the loan back in and the fixed mortgage rate years (1-5 or “Floating” which means the rate does not have a fixed rate of interest and can be adjusted at any time by the mortgage holder or creditor).
These are the results of this experiment, in order of lowest to highest rate:
- HSBC Premier – Fixed Rate: 3 Years, Interest Rate: 4.89%, Monthly Repayment: $2891
- ASB Bank Special – Fixed Rate: 3 Years, Interest Rate: 5.09%, Monthly Repayment: $2949
- Bank Direct – Fixed Rate: 3 Years, Interest Rate: 5.09%, Monthly Repayment: $2949
- BNZ Special – Fixed Rate: 3 Years, Interest Rate: 5.09%, Monthly Repayment: $2949
- ICBC – Fixed Rate: 3 Years, Interest Rate: 5.09%, Monthly Repayment: $2949
- Sovereign - Fixed Rate: 3 Years, Interest Rate: 5.09%, Monthly Repayment: $2949
- WestPac - Fixed Rate: 3 Years, Interest Rate: 5.09%, Monthly Repayment: $2949
- TSB Bank - Fixed Rate: 3 Years, Interest Rate: 5.15%, Monthly Repayment: $2967
- Kiwi Bank - Fixed Rate: 3 Years, Interest Rate: 5.25%, Monthly Repayment: $2996
- SBS Bank - Fixed Rate: 3 Years, Interest Rate: 5.25%, Monthly Repayment: $2996
- The Cooperative Bank - Fixed Rate: 3 Years, Interest Rate: 5.25%, Monthly Repayment: $2996
- Resimac - Fixed Rate: 3 Years, Interest Rate: 5.3%, Monthly Repayment: $3011
- TSB Bank - Fixed Rate: 3 Years, Interest Rate: 5.45%, Monthly Repayment: $3056
- ASB Bank - Fixed Rate: 3 Years, Interest Rate: 5.49%, Monthly Repayment: $3067
- Bank Direct - Fixed Rate: 3 Years, Interest Rate: 5.49%, Monthly Repayment: $3067
- BNZ - Fixed Rate: 3 Years, Interest Rate: 5.49%, Monthly Repayment: $3067
- Housing New Zealand - Fixed Rate: 3 Years, Interest Rate: 5.49%, Monthly Repayment: $3067
- SBS Bank - Fixed Rate: 3 Years, Interest Rate: 5.49%, Monthly Repayment: $3067
- Sovereign - Fixed Rate: 3 Years, Interest Rate: 5.49%, Monthly Repayment: $3067
- ANZ Bank - Fixed Rate: 3 Years, Interest Rate: 5.59%, Monthly Repayment: $3067
- Westpac - Fixed Rate: 3 Years, Interest Rate: 5.59%, Monthly Repayment: $3067
- The Cooperative Bank - Fixed Rate: 3 Years, Interest Rate: 5.75%, Monthly Repayment: $3146
- Heartland Bank - Fixed Rate: 3 Years, Interest Rate: 7.58%, Monthly Repayment: $3810
It can seem confusing laid out in this lengthy list format but Glimp’s platform is far from it. Each option is laid out within its own individual button in a grid format, allowing you to toggle between possibilities easily on the screen. Each option is laid out in order from the lowest (ie best) rate to the highest. While many options are listed twice, it is important to recognize that lenders listed twice are actually lenders with different rates and / or monthly payments.
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