How to Select a Mortgage Broker

How do you find a good quality mortgage broker? Keep reading and find out! Many mortgage broker clients don’t even really know about mortgage brokers when they first decide to purchase a property. However they soon learn once they start having difficulty with their bank or begin to suspect that they not going to get as good deal as they could. They will ask around their friends and family and will discover that mortgage brokers are there to help and what’s more their services are free.

Jennifer Culler, independent mortgage broker

Younger house buyers such as millennials tend to be sceptical of any advertising, and hence are less likely to take the advice offered by the large mortgage brokers who dominate most of the advertising medium. To find out more, visitĀ This skepticism about large advertising budgets is actually fairly reasonable and healthy, as the evidence is fairly strong that the larger firms who totally dominate the market don’t actually provide that great a service.

Nowadays millennials are just as likely to search for their chosen service provider or product on the Internet, and in this area they need to be careful as well because the same very large and dominant mortgage broking companies have also made certain through their very large marketing budget that their website always comes up in the number one slot for any Google search. Most customers tend to implicitly trust the result of a Google search, and will choose any result that comes up in the number 1 or 2 slot.

While these large companies obviously provide at least a reasonable service for the average customer, it is the more difficult situations where their service can be less than satisfactory. These large companies generally get so much new business on a daily basis through their website that they need to put admin staff at the front end to filter out any customers that are not straightforward. For more information about Otago mortgage brokers click here. Any home buyer that calls up one of these companies and reveals that their bank is not being cooperative will almost certainly be politely told to go elsewhere by the mortgage broker. They really only want new business that is pretty straightforward.

For these customers the best solution is to choose a smaller mortgage broker from page 2 or beyond in their Google search. They should obviously check out the brokers website first and make certain they feel comfortable about the services they offer, the qualifications they have and particularly that they can address the problem the customer has. Customers are much more likely to get a satisfactory outcome with the smaller mortgage brokers.


Mortgage Broking in Small Towns

Most small towns in New Zealand have at least one mortgage broker resident, and if these brokers are generally well known and invested in the community then they should have a steady supply of new clients and existing clients. However unless they are regularly supplying mortgages for farmers and other agricultural Industries then it is likely that they will not have a very lucrative business simply because of the low number of property purchases in their town and the relatively low value properties and hence low value of mortgages.

Teresa Roberts, mortgage broker

In 2017 a sizeable percentage of new customers for mortgage brokers search for their chosen broker online. In many cases those customers in small towns may know the broker and would prefer not to deal with them, or they may not know the broker and may prefer to deal with a large city broker. It is very easy for them to search online for a broker, although the sad fact is that in almost every case their search will throw up one of the small handful of very large mortgage broking firms that totally dominate the online search market in New Zealand. For Hamilton mortgage brokers click this link.This is a sad fact because there are a large number of very competent, experienced and dedicated independent brokers that’s simply do not get access to this Internet search market because they are unable to get their website rank in the top 3. However these independent brokers can still do well in the small towns if they market themselves to the local builders, real estate agents and developers, as these parties will be very happy to have a a very good mortgage broker on tap that they can recommend a prospective clients to. Everybody wins when the client gets their mortgage!

However this approach will not address the Internet search market that is currently dominated by the big firms, and these large firms are generally so well supplied with new leads that they need to put an unskilled administrative person on the front desk to prescreen the clients so that only the easiest clients are taken on board. These large firms can get away with providing mediocre service, because there will always be new clients coming in through the door via their website and Internet search. For more information visit

These large firms do have the potential to be disrupted if a competitor manages to get their own website ranked in the top 3, and this is actually a plausible business model for a modern hi tech SEO specialist company. Such a company can get their own website into a very dominant position for Internet search, and then feed the leads that are resulting directly to the independent mortgage brokers in real time. The potential for the SEO specialist company and any lucky mortgage broking company that receives the leads is for the combination to be very lucrative indeed.


Mortgage Brokers for Builders

Competent builders who also feel confident about the market can keep themselves busy all year by building spec homes. These homes do not have a buyer when they first start building, but once the frame is up and the house is covered in and roofed then the house will begin to attract buyers.

For the Builder who understands the way the market works this can be very lucrative, as once the house takes on a semi-finished appearance then buyer emotion comes into play and the builder can get a very good price, well in excess of the build cost.

Helen Sanchez, mortgage broker at

However they do need to build a house in the first place, and will need good financing to achieve this. While they may have a compliant bank, in general builders more often use a good mortgage broker to provide them with the correct type of finance.

The builder will need financing at certain stages of the project, including the section purchase, any architectural planning and design and consenting work, the flooring and the framework including the roof and external cladding and finally the internal cladding and fittings and finishing. The mortgage broker will need to arrange finance that can be advanced in stages, and if the building project is a one off for the builder then the finance will be short term and will be fully repaid once the house is sold.

However if the builder is aggressive in the market they may want to be moving their building gang from one project to the next, and they will need to have multiple projects on the go at the same time, all in various stages. If the builder and his mortgage broker are really smart they may be able to set up the financing so the finance just shifts from one project to the next, and takes on the appearance of a longer term mortgage. This requires more specialist financing, generally from a second tier lender. If the builder has been very successful in the past then he or she may be able to largely finance their own projects, and a mortgage broker will not be required although a very good accountant will be required.

This type of business requires a high degree of confidence from the builder, and also careful risk management if they want to be certain they don’t go bust if the market suddenly down turns. The cost of temporary finance is generally really high, and the last thing the builder wants is for their property to remain unsold for any length of time after they have finished it. To contact professional mortgage brokers in Papakura click this link.