Should I Use a Mortgage Broker?

Sure, you could approach a bank yourself, but working with an adviser gives you a better chance of getting a yes (and it’s free), says Peter Norris of Catalyst Financial.

First of all, these days they’re mortgage ‘advisers’, but for the purpose of the article, let’s run with brokers.

Right now, mortgage brokers account for close to 40 per cent of all new mortgage business settled in New Zealand.

In Australia, that number is closer to 65 per cent, and in the UK it’s up over 90 per cent. That percentage in New Zealand is growing as more and more borrowers look to the experts for help getting a mortgage.

What they do

But what does a mortgage broker do, and should you use one? Fundamentally, using a mortgage broker should simplify the borrowing process for you. But it’s more than that. And it’s more than simply getting the best interest rate. In fact, I’ll often say to clients that bank pricing is close to last on my list of priorities when I’m helping them get a loan. The main reason for this is that banks are all largely offering the same rates and cash and, in almost all cases, it’s the advertised special which the client could get themselves. If you’re broker’s point of difference is based on price, question it. A mortgage broker acts as the middle person between you and the bank. They’re your representative. They’re the person who’s going to take all your documents (like your pay slips and bank statements) and present your mortgage application in the best possible light to give you the greatest chance of getting a loan. That last bit is key. A good mortgage broker will be the difference between how much you can borrow, and whether or not you can borrow at all.

What you don’t know

Could you deal direct with a bank? Sure, of course you can. The problem is you don’t know what you don’t know. A great banker is still working for whatever bank pays their bills. They’re constrained by their bank’s policy and have to work within that. A mortgage broker has the ability to look at your application and assess which lender will best fit your needs in the short and long term, and across all lenders. This gives you access to a wider range of options and, ultimately, a much higher chance of getting a yes.

Which structure?

Structuring your mortgage is the next important part a broker will help you with. They’ll advise you (a banker can’t advise) and help you make decisions on how to structure your mortgage is a way that suits your short and long-term plans. They’ll take into account these factors: • How long to fix your loan for? And why? • Should you put some on floating or revolving credit? • What structure makes sure you pay your loan off faster? • Whether you should use an interest-only mortgage. • Should you split across multiple lenders? • Do you have future plans, such as investment property, that need to be factored in.

I can’t believe this doesn’t cost!

All of this should be reason enough to use a mortgage broker. A good mortgage broker should give you an experience that you’d be happy to pay for. But the beauty of it is that in almost all cases, you don’t have to pay for it. A broker gets paid a commission by the banks once your loan settles and, because of that, it doesn’t cost you anything. It’s also becoming more common for mortgage brokers to be in salaried jobs, which means they’re not incentivised to go with any particular bank. This takes away any bias and ensures you get the best independent advice.

Get a good one

So, is it worth using a mortgage broker? Hell, yes, provided, of course, you have a good one. There are very few ‘no-brainers’ in buying property … but for us, using a mortgage broker is one of them. We’re in a rising rate market with rapidly changing lending rules. Navigating that without an expert could be as costly as building your own house with no building experience. You simply wouldn’t even think about doing that, let alone actually do it. A good mortgage broker is an experienced hand guiding you to where you want to go financially.

Pandemic Takes Toll on Health

Increasing numbers of Kiwis are seeking help for mental health issues, nib NZ’s Head of Partnerships & Groups, Sarah McBride, tells Brenda Ward.

As we live through one of the biggest health crises of the 21st century, the Covid-19 pandemic has taken its toll on Kiwis’ health and wellbeing. Health insurer nib NZ claims data shows a 246 per cent increase in psychiatric claims made between Jan 2019 and Dec 2021 across the entire member base, says nib’s NZ Head of Partnerships & Group, Sarah McBride. And the amount the company paid out in total hospital claims in 2021 leapt 14 per cent to NZ$148 million last year, up from the previous year’s NZ$129 million. McBride says employers are recognising more and more their staff’s health and wellbeing is a top priority. There’s been a 12.4 per cent increase in active group policies between 2020 and 2021. “We’ve seen a significant increase in organisations joining our group health plans, as well as a greater uptake from employees signing up to their workplaces’ existing employee health plans,” says McBride. “Employers are looking for new ways to attract and retain staff, and health insurance has become a great perk for new employees.” She says there’s never been a more relevant time for businesses to consider health benefits.

Job seekers

“We’ve all heard of ‘The Great Resignation’, as Covid-19 has forced people to think about what’s important to them. “A recent survey1 also found that 43 per cent of Kiwis plan to actively look for a new job this year. “Offering a corporate health plan is a fantastic way to show your people that you care and stand out among the crowd.” The company is taking a proactive approach to helping members manage their health and wellbeing, offering 12 health management programmes at no additional cost. “They’re designed to help our members take control of their health and wellbeing,” says McBride.

Wellness coaches

She says members can speak to a qualified nib wellness coach and get personalised health and wellness advice for everyday support or to help them recover from treatment. The wellness coaches can refer eligible members to one of nib’s dedicated health management programmes, which help address conditions like weight management, pain management, heart risk or cancer care. “The idea is to ensure our members who either have a chronic disease or are at risk of chronic disease have the right tools, resources and support they need to prevent both immediate and long-term health issues.” McBride says in 2021 alone, over 1,100 members took part in nib health management programmes and they’ve consistently seen reported improved health outcomes from those taking part. “For example, we’ve seen a 22-point reduction on average in the Oswestry Low Back Pain Disability Score for members who have participated in our nib Healthier Joints: Pain Management programme since February 2020.” She says this is a significant clinical improvement because it allows members to be moved from the ‘severe disability category’ to the ‘moderate disability category’. This means they’re likely to be able to manage this pain conservatively on their own without intervention and helps ensure a greater quality of life for members suffering from debilitating back pain.

Why use group schemes?

McBride says there are some great benefits to having a corporate health plan that work for both the business and employee. “By providing group cover, you’re also showing your employees that their health and wellbeing is priority,” says McBride. “For an employee, our corporate health plans offer access to tailored cover that includes hospital, specialist, and everyday treatment at an affordable price. “It also means, in the unfortunate event they may get sick or need to go to hospital, they can skip the wait for treatment in the public system and get back to work faster.”

For more information or to get a quick quote for health insurance, contact health.nib.co.nz/business

1. newshub.co.nz/home/money/2022/02/more-than-two-in-fiveworkers-plan-to-quit-their-jobs-a-sign-the-great-resignationcould-soon-hit-new-zealand-research.html