Header Ad Module



No announcement yet.

2nd house, do I need a broker or is going straight the bank ok?

  • Filter
  • Time
  • Show
Clear All
new posts

  • 2nd house, do I need a broker or is going straight the bank ok?

    Im a kiwi in ozz earning pretty good coin, and been spending way to much having a good time,
    So now its time to settle and try invest so when i come home ive got something to show for myself
    Anyway my question is, is there advantges of using brokers, or is it ok to go straight trhough the bank.
    Kiwi bank has said if i jump over to them, they will give me interest rates locke at 5.25% for 6 years, sounds pretty good,So what would be the advantage of a broker?? probably an easy answer to this, but im a little retarded in this field, so any helps much appreciated.

  • #2
    Broker's aren't really that necessary. I used one but for my first house purchase, but that was due to being a complete newbie.

    The main advantage of brokers is they give good advice regarding where to consider builders / lawyers / reports on propertys (ie sale history). I would say your interest rate is already great so no need to worry about that.

    It depends if you want the extra services for a little cost. Some cost little to nothing.


    • #3

      Are you sure you can get 5.25% at 6 years? The rate and term seem odd. I have not heard of a 6 yr rate before. And nothing as low as 5.25% for over 5 yrs.

      It may be 5.25% at 6 months. If you are correct and your bank is offering 5.25% 6 yrs then GO for it. A broker is unlikely to get you as good as this rate.



      • #4
        Hey Shane

        yeah this is what he told me over the phone, it did seem a bit odd. and this rate will only occur if I bring my current home loan over from the bank of nz to kiwi bank then get another loan for an investment property on top of that...

        being very new to all this and a mathmaticle mutant, do you guys use some kind of calculator where you throw in all your figures in (selling price, rental return, rates, insurance,property manager etc) and it gives you the % yielding?? or how do you figure out how it will all work??


        • #5
          Hmmm ok well i guess someone with all the knowlege and contacts wouldnt go astray, and having bugger all time to find them myself, i think i might use the broker but still go through kiwibank, if it can work that way.. thanks contrail


          • #6
            When I was in Melbourne I used a Broker who also did the property visits as I was buying over the Internet. It was great to have their pair of eyes and feedback - plus it was more than helpful as the properties I purchased I may not have bothered with - had I seen them as they all needed some work e.g. one property was used as a toilet by the previous owner's dog. I recall that property was bargain and I doubt I had any competition.


            SEARCH PropertyTalk, About PropertyTalk

            BusinessBlogs - the best business articles are found here


            • #7
              HAha thanks Donna, taking it all aboard!!

              I emailed the bloke at kiwi bank after the last comments just to double check what he had said, or now maybe what i thoguht he had said!!??
              and the "quick reply" was ""We only offer fixed rates up to 5 years and it would be higher than that. If you bring over the existing loan I can give you a better deal than if you just purchased the new property with us.""

              So ive bumed out there, so defiantly going to use a broker.


              • #8
                Look here http://www.interest.co.nz/borrowing/mortgages for an idea on interest rates.


                • #9
                  Thanks Tan, thats a handy little site


                  • #10
                    Hi Kiwiinoz, Kiwibank are pretty strict on criteria and also charge some of the highest fees, including when refixing rates. A good broker will be able to move quickly, give you impartial advice, help with structure and choose a bank that will suit your particular situation. No to mention knowing what deals are on offer on any given day.
                    Craig PopeCraig Pope Mortgages & Insurance


                    • #11
                      Hey Craig, thats kind of strange that they are strict on criteria, i asked about for a few days, seing who would give me a mortgage with a 10& deposit whilst living in Australia, and kiwi bank were the only ones who would take me on!!
                      But yesss defiantly using a broker now


                      • #12
                        Hi Kiwiinoz, One of the things a good mortgage broker can do is help you grow a portfolio with a multi bank relationship. It is not always the best thing to have all your properties with one lender. If you are doing your own finale work this is much harder to manage. Particularly important if you ever end up doing a combination of buy and hold and trade strategics. Banks will manage their risk by taking as much security they can.


                        • #13
                          Well guys heres what I ended up with, just went unconditional today woopwoop http://www.trademe.co.nz/Browse/List...x?id=507565451

                          I saw this advertised earlier this year for 465k but it didnt sell, so they were putting up for auction, I spotted it as soon as it was put back up on trademe and wasted no time. Long story short, i got it for 380k and had to get it vlaued for the banks, and it came through at $430k, the area is great, and the house isnt bad, could do with a little modernising, OOoooh and it also comes fully furnished. looking at the figures it will be slightly positivily geared, and is located nicely for long term gains..... hoooray


                          • #14
                            Congrats on your purchase. Did you use a broker in the end?
                            Premium Villa Holidays in Turkey


                            • #15
                              hi KiwiOZ,

                              I have used both methods, straight to bank and broker. What happened was , I went to the bank first and the rate they gave me was the same as the one advertised outside the bank which was not good. So i went to a broker which gave me a better rate than that. Which is odd as the bank needs to pay broker some commission.

                              So i went back to the bank and showed them the rate that the broker gave me, and asked the bank to beat that rate. And they did. So i went with the bank, but the broker was helpful also.

                              My advice is don't get stuck with one bank. Try a few and broker also if you like.