Around 40% of the customers obtaining mortgages New Zealand use mortgage broker to achieve this. The remaining 60% go directly to their bank for other financier, but the banks are very happy to pay a commission to mortgage brokers Waikato because the brokers perform such a valuable service.
The reason why most people use a mortgage broker is because there’s something because process is so difficult to navigate for the average person, and they use a broker also to make absolutely certain they are getting the best deal on the market. Mortgage brokers like Jamal Smith, pictured right, almost all come from within the banking industry, and they have excellent and deep experience with how the banks operate and what their requirements are, and using this experience the brokers are in a position to prevent their clients do the banks in the best possible light.
The brokers often solve a number of problems for the banks particularly around pre screening many applicants for a mortgage, and providing professional advice to the customer on what mortgages and payments are appropriate for their particular situation. The brokers are prepared to put quite a lot of work into each customer because they are well rewarded especially in this current period of expensive houses and high mortgages. Brokers generally turn around 0.65% commission from the banks once the loan has been advanced, which floor a $200,000 mortgage translates into $1,300 for a few hours work. Most brokers will have a set of quality systems and processes which means that the actual effort they personally need to do will be minimised once they have concluded discussions with the customer.
Mortgage brokers Westland who work for a large firms more generally have a steady supply of leads coming in the door, and while this means a steady workflow and a steady income they will also be required to make high payments to the broking companies franchise owner. The work can also be somewhat repetitive, especially as the large broken firms tend to filter out any potential clients that look a bit difficult.
Independent mortgage brokers have a somewhat different situation in that they will most certainly will not have leads streaming in through the door, and instead will have to devote a large proportion of their time to find a new business. Fortunately the commission structure for the industry is generous which means that the brokers do not need to be working right of mortgages for every hour every day, and in reality they could spend 20% of their time writing mortgages and still have a very high incme.