Using a Bank vs Using a Broker


Why are so many kiwi homeowners being ripped off by their bank? If you ask most people which brands they trust the most, their bank will probably pop up in their top 5… so it makes sense that when taking on a huge amount of debt through a mortgage, most people go to the bank they trust.

Banks and Mortgage Brokers are not enemies… it’s not us vs them. However, the public perception is that you can’t trust banks or brokers and you have to take your chances with the bank that you’ve always dealt with because of a perceived ‘good’ relationship with someone at the bank. Your bank hopes that when you need a mortgage you’ll just walk in off the street and ask them for their current home loan rate and accept it there on the spot, no negotiating, just implied trust. This is a mistake.

What is not clear to many people is banks don’t have to give you their best interest rates, they don’t have to tell you about potential savings, banks have big targets and big profits. With interest rates falling over the last few years the NZ banks have enjoyed huge profits at the expense of the everyday Kiwi who is paying far higher interest rates than they need to be… far higher interest rates than what is a fair amount.

Mortgage advisers work for you, on your team, to find the best rates and mortgage structure for you, keeping the banks honest by making sure their rates stay competitive. It’s not really the broker vs the bank it more of a contest between you and the bank to get the best rates and mortgage advisers do the fighting and negotiating for you. Your bank is not going to call you up midterm with an offer of a lower interest rate…

When you work with a mortgage adviser they do the legwork for you and we know which lenders are offering the best rates at the current moment. The rates mortgage advisers are offered are usually lower than any rates you see on billboards or TV.

All day, every day, we deal with banks specifically working on mortgage deals… it’s our main area of expertise. Just like a lawyer handles the legal stuff, the accountant handles tax, agents handle property, mortgage advisers are experts in the finances and do not charge you for their services because banks pay the fees.

Mortgage Advisers can finance tricky deals because of their knowledge with various lending partners and are typically easier to get in contact with, less bureaucratic, and more willing to spend time on the phone explaining the specific details. iRefi Mortgages is a better alternative than a typical mortgage broker because we’re doing everything online. We don’t need to come to your home and meet you face to face… you don’t need a new friend, you want good rates, good service and the ability to manage your mortgages online anytime you’d like.

As a mortgage adviser/broker, we don’t work for the bank, we work for you. We’ll find the best rates on your behalf and make sure you’re getting the best possible outcome. This is where iRefi really excels because we know what to ask for and how to negotiate on getting you more from the deal. We’ll also allow other banks the opportunity to offer you even more which is great because switching banks these days is really simple (the new bank does all the work for you).

We try to make the process very easy to complete online but if you’d like to call 0800 733 462 we’ll be able to assist on the phone.

Not all mortgage advisers are good or bad, and the same is true with banks. However, one major benefit of working with iRefi is that the experience is probably a lot more consistent because it’s just a team of guys dedicated to you winning, as opposed to a large bank with thousands of employees who change jobs often.

So if you want someone to guide you through the mortgage process, and someone to hustle a bit more for lower rates on your behalf, iRefi Mortgages are your guys.

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