[Question] Which is better, through bank or mortage broker?

[nicklau81]

Hi All,

First apology if this question has been asked. I have tried searching but keen to see more updated answers

In your experience buying house in NZ especially in Wellington, which one would you recommend? Get the mortgage through bank or mortgage brokers?

If you say mortgage broker is better do you have a good recommendation broker in Wellington ?

Thanks heaps all

Cheers

[Super_BQ]

I would think a mortgage broker would be more suitable for those looking for the lowest interest rate based on their credit rating. This may be more applicable for those that have bad credit rating where the major banks aren't likely to lend to them.

[kiwieagle]

Personally, I would suggest the bank. Mortgage brokers seem like they have a fiduciary duty to get you the best loan with the best terms but actually can (not always will) steer you towards what gets them the bigger commission.

[kiwi.]

I spoke with a mike pero franchise owner this week and he offered some pretty good info. Haven't decided if we'll go with him but is a definite possibility. Have heard that broker could be beneficial if you have little history in nz. But people here seem to have gone with both of these options and done ok.

[Fish]

Broker all the way IMO. Our interest rate was .5 lower than any banks would give us when we walked in on our own. Of course some brokers are better than others. Also if you're a first home buyer, brokers will help you with lots of advice and generally are on your side rather than the banks.

[NJ2NZ]

Broker all the way IMO. Our interest rate was .5 lower than any banks would give us when we walked in on our own. Of course some brokers are better than others. Also if you're a first home buyer, brokers will help you with lots of advice and generally are on your side rather than the banks.

I think I read here before that some lenders won't deal with brokers. I might use a broker for the rest, but approach those lenders directly and see who offers the best deal.