Many people review their own mortgages but some of the ‘smarter’ people will have a mortgage adviser help to ensure that they are getting the best mortgage rate.
A mortgage adviser ultimately should be able to save you money on your mortgage.
Why An Adviser Can Do Better
There is a saying; “you don’t know what you don’t know” and often with finances people think there bank has offered them good advise and the best mortgage rate but it is not until they get a second opinion that they discover that this was not the case.
A banker is employed by the bank so their loyalty will be to their employer – the bank – not you.
Bank staff are often quite limited in there knowledge. They may know their own banks loans quite well but do they know much about the other banks products? Most are not going to be up to date with what the other banks lending criteria or what they are offering.
Good mortgage advisers are dealing with a range of banks and non-bank lenders every day and therefore know the various lending criteria and what they are offering.
Your Home Loan Needs A Service Too
You will take your car in for a regular tune-up and this ensures that it continues to do what it is meant to do in the most efficient manner. The mechanic will look at the car, plug in their diagnostic equipment and make the necessary changes.
We all know that regular service to our vehicles ensures that they run smoothly and it reduces the risk of things going wrong.
When a mortgage adviser takes a look at your loans they will be doing something similar but without getting covered in grease.
A mortgage adviser will check your loans to make sure they are as efficient as possible and that will include making sure that your loans are structured to suit your budget, that you have the ability to pay them off faster and of course to ensure that you are getting the best mortgage rate.
A mortgage or financial review should also look at any other debts, your investments (your Kiwisaver, any savings, managed funds and of course property investments) and insurances to ensure they are working for you too.
Should You Consolidate Other Debt?
If you have other more expensive debt or have acted as a guarantor to someone then these should be high priorities to review.
Some debt is expensive and really if you have any debt that is at a higher interest rate than what your home loan is then you should review those debts and look at the pro’s and con’s of consolidating your debts into your mortgage.
Most of the time it makes common sense to consolidate more expensive debts into the lower cost mortgage; however you need to consider things carefully and this is an area where a good mortgage adviser can really help. They can explain the implications of any debt consolidation and also explain the best way to structure these loans.
Getting The Best Mortgage Rate
Of course getting the best mortgage rate is an important part of a mortgage review.
Our company is North West Mortgages Limited but we trade as Mortgage Link Auckland. Some people will be more familiar with Mortgage Link West or Mortgage Link Henderson which were common references too. The reality is the name we are known for is not nearly as important as the way we do business and looking after our clients was always a top priority and something which many mortgage forget as they are more focused on how much money they can make.
While we cannot speak for how other Mortgage Link offices operate we have always negotiated with the banks to ensure that people were being offered the best interest rates on their mortgages.
The banks make it quite difficult as the have there ‘standard interest rates’ and ‘specials’ which they advertise. As a mortgage adviser know that getting us to negotiate the best mortgage rate from the bank generally results in you having a lower interest rates than those which they may be advertising.