Mortgage brokers in 2017 are a far cry from those around during the financial crisis in 2008/2009. The New Zealand cowboy mortgage brokers were in a large part responsible will the housing crash, as they had been enthusiastically arranging mortgages for amateur investors without really paying any attention to the risks and the inability the borrowers to make payments.
Back then, great Northland mortgage brokers were happy to exaggerate their clients ability to make payments, and exaggerating their clients net worth and even the value of their property portfolio, all to ensure that the client would get their mortgage and the broker would get their commission. It all came horribly unstuck in 2008 and 2009 when suddenly the housing market crashed and stressed investors were unable to sell their properties or make the mortgage payments. Mortgagee sales and bankruptcies and the inevitable personal toll was wide spread.
Now in 2017 every mortgage broker needs to be fully qualified and registered, and will have had to pass a difficult financial examination as well as get approval for registration and become party to an approved dispute resolution scheme. Mortgage brokers can no longer get away with the same tricks that they did in 2008/9, but for all that the best mortgage brokers in Hawke’s Bay are still able to help customers meet their goals.
Banking legislation has made it more difficult for borrowers to get a mortgage by insisting on a 20% deposit. A mortgage broker can help the borrower by advising ways that the borrower can meet the 20% deposit from KiwiSaver and other sources, and the broker can also help by making certain that the borrower is presented to the bank in the best possible light.
Mortgage brokers also have access to non Bank lenders who may be comfortable with lending to a client who is not acceptable to a normal bank, but they would require a higher interest rate. Mortgage brokers can even tap into high net worth individuals who are comfortable lending to clients at even higher interest rates. Often clients are happy to borrow this money if it is for the short term while they are waiting for a property to sell for example.
A number of mortgage brokers specialise in these difficult cases, and they get no one in the industry s street smart and the go-to person if you have a difficult problem. These brokers are generally in the larger centres, but they are happy to take work from anywhere in New Zealand. Often these brokers are responsible for saving investors and borrowers from financial ruin by coming up with a clever plan then strategy specific to their client.