It's not just about interest rates, the ongoing relationship with the lender is also very important!
The best news is that lenders are now competing more aggressively for prime busines, typically with good deposits, in all sectors of the home loan and commercial mortgage market.
The majority of Home Loans have always been provided by Banks, plus there used to be so many Non Bank lenders going head to head on interest rates, the credit crisis put a stop to this though. If you compare New Zealand's best fixed and floating rates amongst all the lenders over a year it would often change from one week to the next. They can also have daily margins that can be cut if you negotiate, so what appears the "best" may not be on the day!
The term "Non Bank Lender" in the current market has changed and you tend to look to at Non Bank Lenders or Sub Prime Lenders, when your mainstream Bank has said "NO" to your loan application. This may be because you may have had problems proving income, insufficuient deposit, or you have had some credit hiccups in the past, meeting loan, credit card or bill payments. If you do have problems with Banks refer Non Bank Bad Credit, as this may give you some options that you may not have thought about.
Are you wondering if it is better to have a fixed or floating rate, or split some short term, some long, refer Floating Rates.
Another factor you need to consider is that Bank Home Loan up front lending fees are usually waived but what do they charge when you want to switch from a floating rate, to a fixed term and will they charge each time you come off a fixed rate expiry date? Then, who do you turn to for advice on interest rates, an offshore call centre, a talking computer or would you rather just ring us for personal free service?
Our company is kept well informed via email, plus the lenders have Business Development Managers who are always keen to meet up, or talk by phone, to keep us up to date on rates or products.
It is impossible for you, the client, to keep up to speed on all that is happening in the New Zealand market, that's our job, so we can find a home loan or mortgage solution that works for you.
There is no Broker Fee applicable on most residential Home loans that we arrange. The Bank will pay the Company a finders fee in the form of a commission that is payable once the loan settles. This is then allocated to the introducing Broker.
The exception to this is when we are dealing with some Non Bank or Private Lenders, often on more complex proposals, sometimes with poor credit or commercial deals, where a Broker Fee can be applicable. A guideline is 1% although there is a minimum fee applicable on the likes of smaller second mortgages. These fees will always be disclosed to you prior to your accepting any loan offer.
Our commitment to you is to always ask for the best fixed and floating rates from the providers of Home Loans and Mortgages in New Zealand and to do our best to negotiate for any lender charges to be waived or reduced.
Contact us for more information
or Freephone 0800 699436 (0800 OXYGEN)