There are many reasons that people choose to use an adviser or intermediary when looking at their home loan and insurance options. For some it is not knowing where to begin with the process and needing an independent voice to help them through everything. For others it is a lack of time in their busy lives and the peace of mind that is afforded by being able to pass all the work over to a third party. Then there are others who are referred by a trusted friend or family member, because it’s “the thing that you should do!”
But, for many, the decision to use an adviser is not an option that they have considered. While we accept that an adviser’s services are not for everybody and that direct dealing is certainly within the capabilities and requirements of many, it highlights some interesting comparisons. When you think about an accountant and how they prepare a client’s end of year tax return it throws up some interest comparisons.. For many of their clients the actual procedure is very straight forward, but they prefer handing the job over to give them the confidence that their requirements are being looked after by a trained professional in order to get the best outcome at the end of the process. The same goes with lawyers. We’ve all seen the movies where somebody defends themselves to save costs, but usually this is used as an example of how things can go wrong. The old adage of a little knowledge being a dangerous thing can be very true. We have also used the analogies of builders and plumbers, where it is possible for you to do the job yourself, but in most cases we are happy to use an expert’s services to save time and stress.
One major difference between any of these professions and the role of the mortgage and insurance adviser is that currently advisers (Locally at least) don’t feel the need to charge a fee to their clients as they are generally remunerated by the providers. Maybe it’s the fact that there is no charge for their services that makes it difficult for people to see the value, but regulation under the “Financial Markets Authority”, the CCCFA and the required accreditation with lenders and insurance providers requires a level of training and ongoing education in order to be able to perform the role successfully which should provide confidence that you are dealing with an expert.
Despite the fact that around 35% of home loans in New Zealand are arranged by independent mortgage advisers, some people still see them as a means of last resort. Even some associated professionals will only recommend our services when a client’s own bank has refused their application or they are in a tricky situation and need an adviser who can think outside the square for them. But a home loan and insurance adviser should be your first choice for a number of reasons.
We are up to date on lending and product criteria from many sources. Bank and Insurance company policies change constantly and we have to be aware of these changes. While your bank may be able to offer the best of what they have, they can only offer you products from one lender – them! Your home loan and insurance adviser can offer you more options, which can dramatically reduce the time and energy spent on trying to find the most suitable loan and insurance.
Stress is usually created through a feeling out of being out of control or having someone else pulling the strings. Advisers put their clients on an even footing with lenders and insurance underwriters and we are used as advocates to put our client’s case forward in the best possible light. We know when to push and when to comply with what the lenders/insurers are asking for.
We negotiate the terms and conditions of the home loan and insurance.
We can structure your loans in the best possible way that will help you achieve your financial goals quicker.
We guide you through the process involved in purchasing property or building a new home.
We are able to put you with the lender and insurer whose products best suit your needs both now, and in the future as your requirements change. As independent advisers we will always be available when you need to speak to us, and will be there for the long term. (Are you still dealing with the same person at the bank who set up your account all those years ago?)
We deal in mortgages and personal risk insurance. We are specialists in this area and our knowledge and expertise can find the best ways to manage and protect your debt
The question to ask yourself is, “Do you want to do all this yourself?” If the answer is no, then engaging the services of an independent home loan and insurance adviser should be your first call.
