Frequently Asked Questions
Why Use a Mortgage Broker?
Mortgages are complex and there are many different types of home loans available from a large number of competitive lenders. There are many things to consider including interest rates, payment terms, flexibility, hidden costs and fees etc. Greenlight Mortgages can help you choose a home loan that is suitable and appropriate to your personal circumstances. Greenlight Mortgages is familiar with the different lenders, loan products available and the bank’s requirements. By doing the leg work for you a mortgage broker can also save you considerable time.
Greenlight Mortgages deals directly with the people in the banks making the lending decisions. A broker can help you to package up your application and present it the way banks want to see it. This helps to increase your chances of getting the finance you want. Because we are experts in our field Greenlight Mortgages can offer free impartial advice and will also negotiate discounted rates and extras you wouldn't expect to receive from lenders if you did the hard yards yourself.
Who Pays a Mortgage Broker?
Generally the lender or bank pays the mortgage Broker for arranging the loan with the borrower.
The only time you'll be charged a fee for our services is if the lender will not pay us directly for what we are doing for you.
This happens in some cases, and will always discuss a fee upfront and mutually agree this in advance.
Why choose a mortgage broker who is a member of the Professional Advisers Association (PAA)?
Greenlight Mortgages is proud to be a member of the PAA.
PAA members act independently of any lender and have relevant and current experience having passed appropriate qualifications. They have to have at least $2 million in Professional indemnity insurance cover, have an acceptable personal record and have completed an approved training program. All PAA members also represent a minimum of six different lenders. In the case that something goes wrong you will also have a point of contact to make a complaint as PAA members must follow the PAA Code of Ethics. For more information see the PAA website - paa.co.nz
If the banks pay Greenlight Mortgages a commission is this then added on to the cost of our loan?
No... The lenders that use our service do so as we are another channel from which they obtain business as is as a bank branch or mobile manager. The cost of obtaining business from Greenlight Mortgages is comparable to the other channels the banks choose to use. For this reason it will cost you no more use us.
What's the difference between fixed and floating rates?
Most lenders will offer both fixed and floating interest rates. If you take a loan which has a floating interest rate it is likely the amount you have to pay back will change from time to time or when your lender changes its current floating interest rate. If you take a fixed rate your repayments will be the same for the term of that fixed rate. Lenders will generally offer fixed rate terms from 6 months to 5 years. Floating rates are more flexible than fixed rates and can be repaid at any time without penalty fees charged. The rate type best for you will depend on your situation.
At Greenlight Mortgages we can advise you on the best way to structure your loan.