Why Choose a Mortgage Broker Over Going Directly to the Bank?
When it comes to buying a home or refinancing an existing mortgage, one of the most important decisions you’ll make is how to secure your loan. Many borrowers automatically go straight to their bank — it’s familiar, seemingly convenient, and often feels like the default option. But there’s another route worth considering: working with a mortgage broker.
In today’s ever-changing mortgage market, more and more property buyers are choosing mortgage brokers over going directly to the banks. Some of the reasons they choose to do so include:
- Greater Access to Loan Options
Banks offer their own mortgage products — and only their own. When you go to your bank, you’re limited to what they have on the shelf. A mortgage broker, on the other hand, works with a wide panel of lenders. This gives you access to a much broader range of home loan products across various banks, non-bank lenders, and credit unions.
This variety means a broker can find a loan that better fits your needs — whether that’s a lower interest rate, flexible repayment options, or a product tailored to investors, first-home buyers, or those with unique financial situations.
- Brokers Work for You — Not the Lender
Mortgage brokers are legally obligated to act in your best interest — a key difference from bank loan officers, who are employed by the bank and incentivised to sell their employer’s products.
A good broker will take time to understand your financial position, goals, and borrowing capacity. Then they’ll present you with options that align with your long-term objectives, not just what’s easiest to sell.
- Negotiation Power and Market Insight
Brokers work with lenders every day and understand how to navigate the lending environment. They know which lenders are tightening their criteria, which are more flexible, and which are offering promotions or discounts.
This insider knowledge, combined with the volume of business brokers bring to lenders, means they often have more bargaining power than the average borrower walking into a bank branch.
- Help with Paperwork and Process
Applying for a mortgage involves a lot of paperwork, documentation, and back-and-forth with the lender. A mortgage broker handles much of this for you — streamlining the process, keeping you updated, and helping you avoid delays or mistakes that could jeopardise your loan approval.
They’ll also help explain the fine print, ensuring you understand your obligations before signing on the dotted line.
- It Usually Costs You Nothing
In most cases, mortgage brokers are paid a commission by the lender when your loan settles. This means you get expert advice and support at no direct cost to you. It’s important to note that ethical brokers will be transparent about how they’re compensated and won’t push you toward one lender over another for personal gain.
- Loan Structure – Why It Matters
Finding a lender with a competitive rate is just the beginning — how your loan is structured can have a significant impact on your financial well-being over time.
Banks typically don’t provide tailored advice on loan structure, but a mortgage broker can. They take a more holistic view of your financial situation and consider multiple lenders to find a structure that suits your short- and long-term goals.
Why Work with Erskine Owen’s Mortgage Broker?
Our expert mortgage adviser, Wendy Ryan-Kidd, brings a wealth of knowledge and a strong track record of securing the best mortgage solutions for her clients. Her expertise is backed by glowing reviews from satisfied borrowers.
Reach out to Wendy today and experience her sharp skills to get you the best deal. wendy@erskineowen.co.nz
Ready to make your next move?
Whether you’re buying, refinancing, or growing your investment portfolio, Erskine Owen and Point Property Management are here to help. From securing the right mortgage to managing and improving your property, we’re your full-service property partner.
Get in touch: pointpm.co.nz | erskineowen.co.nz