There are no regulations stating what information mortgage brokers have to tell you – it’s up to you to find out about their services and their background. Here are five questions you could ask:
How many lenders do you work with, and who are they?
To find you the best deal, brokers need to be dealing with more than just a handful of lenders. Many deal with at least 15 or 20.
How do you get paid for the service you provide, and who pays you?
Brokers finding loans for residential property don’t normally charge the borrower – they get paid commission by the lender. A few charge you a fee for their time if your loan applications are all turned down – ask if that applies with your broker. Don’t deal with brokers who ask for cash in advance to find you a home loan.
How long have you been a mortgage broker?
An experienced broker will have greater knowledge of the loans on the market.
What training or qualifications do you have?
A good broker will have received training within the company or in a previous career such as banking.
Are you a member of the New Zealand Mortgage Brokers Association?
Choosing someone who is a member of a professional body doesn’t guarantee a particular level of service, but it is a good place to start. NZMBA members must work to a code of ethics and must have indemnity insurance. The association has a disciplinary body.
Content provided by Sorted.org.nz, Your Independent Money Guide.
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