Why Use A Mortgage Adviser

SPEAKER_01 0:10

I get asked a lot why should you use a mortgage advisor when you can go directly to the bank and just get yourself an approval there. Now, listen up. This is the episode for those that always ask that question and wondering what's the value of a mortgage advisor. I've got George Love with me today from Harcourts, and he's got a story that I call it case in point, and he calls it his war story now.

SPEAKER_00 0:33

Hello, George. So absolutely,

George Shares A Last-Minute Save

SPEAKER_00 0:36

you know, we that we need these good war stories, and and this is a classic one that I use all the time now with with my buyers. This this young person came to me, it was a first home for her and her daughter, and she was very confident with the bank that she was going to get the finance that that she needed, even though I did highly recommend that she used the broker. But she was like, No, I've worked with the bank here. I've got a while. I'm pretty sure I'm getting everything that they've asked for. Um so far it's been been all good. And then literally, right at the last minute, and the day before the auction, the the bank refused her, and she phoned me in tears. I'm out, can't do it. And I said, Well, would you be open to talk to a mortgage broker? And she's like, Yeah, but I don't think it'll do any good. I said, Look, it's just a conversation. So we put yourself in touch with her, and I think by the end of that day, we got a phone call that she could put an offer in, which was we were blown away at the speeds that that you worked at with there. I think you had 10 days for for finance, and her offer got accepted, and the conditions were all met within three days, which again blew us away. There was 10 days there, but we got it all done within three days. And this young lady, you just made her the happiest lady in the world, and her daughter. Um, I've met her and she's a beautiful little girl, and they are so delighted going into this house. It's a beautiful home, especially for their first home to be it's you you change lives there.

SPEAKER_01 2:16

Oh, thank you, George. I mean, obviously, this was not an episode to promote us, but I just really wanted to point it out because often people go to the banks, they get approval, and it's awesome. And to be honest, 90% of the time it does work out for them and it's an easy option. You've got your main bank that knows all your history, you know, and you don't need to supply as many documents. Because that's what I often hear from um people online. You know, I didn't need to give them so many documents compared to if I go to a mortgage broker, you know, they want everything. The the reason we need everything usually is because we will take you to other banks and that bank doesn't know anything about you. That's why we need your bank statements, that's why we need your pay slips, that's why we need, you know, verification of who you are as an ID. So for that particular person, what happened there was I believe her bank has a pre-approved her for a certain amount, but then they didn't like the particular

When The Property Is The Problem

SPEAKER_01 3:08

property. So it was the property that was an issue for this bank. And I'm finding that this particular bank has been flagging properties left, right, and center in carpeting because it might be in a flooding zone or it might be, you know, uh it might have had a history of an insurance claim, but that's all been resolved by now. But they still want reports, you know, like weather tightness reports and making clients spend extra money that the clients doesn't really have or doesn't really want to when the other banks are happy to take that property as a security.

SPEAKER_00 3:37

Yeah. And and I mean the other things that they don't realize as well with the banks. I mean, this young lady, her father, is a builder, you know, so he came through the property, and there was nothing that worried him about the property, everything that would need done, he can do that. And and if they don't really take these things into account as well. So it isn't really going to cost her because she's got family support and her and they're gonna do all this work for her as well. I think the other thing is I think the days of, I mean, when I first came to New Zealand back in early 2000.

SPEAKER_01 4:11

When you were five.

SPEAKER_00 4:12

When I was five, yes, it's that thank you. Thank goodness the camera's not on, is that banks used to be saying then one of their mottos was the better we know you, the more we can do for you. I I think those days are well gone now, the way that the banks run. And it's not a case of that. I think it's more a case that mortgage brokers can do that.

SPEAKER_01 4:33

Yeah, we fight for them, right? We fight for our clients. Um, we are their advocate, we are their therapists,

Brokers Advocate And Pull Strings

SPEAKER_01 4:40

we are the ones in their corner. And I think a lot of people don't realize that that often your situation may seem simple. You know, you have a good job, you have a good deposit, you know, why the bank would say no to you. But as you said, that might be a case of hey, this property may need some work, but you've got a family network that will do this. And if you don't convince the banker enough, the banker may not be fighting that case for you because the banker doesn't care. At the end of the day, they come to work, they get paid salary, they go home.

SPEAKER_00 5:08

That's exactly it, Zebrine. So that I don't think there's that there's no real input for them, you know, it's just a tick of of the job, you know. And I say that with utmost respect because Megan used to work for the bank. That's how she knows so much about finance. She was a lender, and she used to be that person that would be there fighting to get to get a loan through at the last minute. These people needed it, but they're not all like that, you know, not the way you are with mortgage brokers, because most of them are on a salary, and that's it. They're they're finishing at five o'clock and they're going home.

SPEAKER_01 5:44

And to be honest, George, I'll tell you, every single banker I know that's fantastic has ended up going either on their own as a mortgage advisor because being in the bank does not satisfy them because they want to help people frustrated with the system, exactly, and often you are strictly bound by black and white rules. Yeah. So if you can't help a client, then you get frustrated because you personally feel for them. So they end up going to become a mortgage advisor or insurance advisor or real estate, you know, they end up leaving the banking industry as a system because it doesn't work for them. Absolutely. In the case of that lady, I just want to point out again that what we had to do behind the scenes is to really pull all the strings and connections that we have. Because as mortgage advisors, this is our job to build those networking connections with the banks. So when the cases like this come across, when there is urgency, we can't pull the right strings along, you know, and say, hey, look, can you do us a favor? Can you push this one up the queue? Can you look at this one urgently because this one is now a live deal, it's under offer, you know, and we need to secure the finance, otherwise, the person will lose the house.

SPEAKER_00 6:50

Yeah. No, you guys do an amazing job here, and we've experienced that firsthand several times now, you know. So yeah, take my hat off to you.

SPEAKER_01 7:00

Thank you. I'm glad that you've got another war story to share with people.

SPEAKER_00 7:03

Absolutely. We need them all. We need them all.

SPEAKER_01 7:05

Thank you. And for me, again, it's empowering when single mum, you know, can get on the letter, young people can get on the letter. Like to me, when I see them do it, I go, Well, you guys have no

Getting On The Property Ladder

SPEAKER_01 7:16

excuse. If you both are working and you've got good salaries and good deposits, come on, get on the letter.

SPEAKER_00 7:21

Exactly. You know, and it's I think it's about making you've got to make the right sacrifices as well. I think too many people want the same home as mum and dad and think they should have that and they won't accept anything less. Where if you just scaled it down, bought a house that needed a little bit of work, better TLC, you know, and build that portfolio up for yourself. That's a better way to get on the ladder. Don't go on as many holidays or trips away and as many coffees, do I dare say, you know, that was one thing the bank were looking at there for a while. But but it's true. I know when Megan and I were buying our first house, we we were on a real strict saving plan. And it was so strict. Back then we used to drink coffee, and we go, should we have a coffee? No, we won't. Okay, let's put that ten dollars into our savings account now, and straight away we would go into our app and move that money straight away. And it was little things like that, which were saving us a lot more money every single week that mattered to buy our first home.

SPEAKER_01 8:24

Exactly. You don't become a millennial overnight unless you win lotto. But even then, if you don't have the right habits and discipline, you you know, you just can't get to that big high net worth position. It's two dollars that makes a difference. That's right. It's that every single coin that you can save.

SPEAKER_00 8:40

Every single penny that you can save. Absolutely. And I think people miss that a lot, you know, and they think it's okay to go and have the takeaway every single week or two takeaways a week, you know, and it all adds up and hits the pocket.

SPEAKER_01 8:53

Exactly. Awesome, George. Thank you so much. Look forward to having you here again.

SPEAKER_00 8:57

Thank you.

SPEAKER_01 8:57

Bye.