new mortgage broker and new bank

[ATM]

I refixed my mortgage for 3 years not long ago using my new mortgage broker. Now my other fixed loans are up for refixing. My broker recommended switching to a new bank and said I could get a good deal. I am worried about penalty for breaking my fixed loans. Any advice? Listen to my broker?

[ScottSI]

If the broker is saying break the fixed term and shift then it is as simple as this:

1 - Ask the bank what the break fee will be so you can shift.

2 - What is the great deal you will get from the new lender?

3 - Calculate the interest difference of staying & shifting taking into account the break fees (don't forget legal costs also) using a amortisation calculator like brett whissel (think that's right but Google it)

4 - If no difference why shift?????

5 - Before you shift anyway go back to your original bank and say bank xxx will give me this rate can you beat it - they will at least match it then but often will give you a little more.

Brokers get commission on the loans they sign to a bank, this us how they make their money. If you want to listen to them blindly and not actually base your decision on hard data that is your call, personally it's all about data for me.

Question: Why are you using a broker if the loans are in place, why not look at interest rates at www.interest.co.nz and then just tell your manager you want them to match xxx or you will move.

A broker needs to be paid so this means the bank generally can't discount the rate as much. We use to get up to 0.5% off listed rates without to much effort except on super low deals.

I don't understand why people jump banks every 5 minutes instead of building a relationship - banks are your business partners if you are an investor

[rocket]

Yes I believe the same. A working relationship in any industry is important. Unlike many countries we have limited banks & hence we can't keep switching or else we will come back full circle. & then what? ?
Unless you have only few years mortgage left don't switch. ...
Interest rates are negotiable...all banks borrow at the same rate & are negotiable on their margins percentage.
Its just who's marketing & who's not.

[ATM]

Hi scott and rocket
Thanks for yr reply. Yes I believe in keeping long term relation too and am quite happy with the current bank and have been with it for a long time. The only reason I used a mortgage broker is I thought I could get a better deal when I refix when my loans expire as I am not good at shopping around and negotiating.
Maybe I could just negotiate with the current bank myself?

[Tan]

I emailed my bank in NZ and asked for a discount on their 5.8% 6 month deal about a month ago. They replied with 5.45%. Didn't even have to speak to them, no worries. If it was for longer I probably would have tried harder, but as I am in Australia I was too lazy to!

[ScottSI]

Maybe I could just negotiate with the current bank myself?

Just email them and say" what are the best rates you can do for these loans for a good customer like me as some great rates out there but would prefer not to have to shift banks if I don't have to"

They should come back lower than listed.

[Meehole]

I'd rather build a good relationship with the mortgage broker than the bank. Never forget when I split from my husband and we sold the family home. Mortgage was discharged and I went into the ASB in Glenfield Mall and the teller had nothing on screen about me or my banking history. Felt like a lost soul.
Business about relationships and negotiating, if you are only dealing with the banks every 2 - 3 years to refix the mortgage then that's not really much of a relationship in my opinion.

[Maccachic]

I'd rather build a good relationship with the mortgage broker than the bank. Never forget when I split from my husband and we sold the family home. Mortgage was discharged and I went into the ASB in Glenfield Mall and the teller had nothing on screen about me or my banking history. Felt like a lost soul.
Business about relationships and negotiating, if you are only dealing with the banks every 2 - 3 years to refix the mortgage then that's not really much of a relationship in my opinion.

Is it any different with a broker? I've found broker useful for initial set up then you read in here keep track of what's going and move when you need to be it breaking loans / switching banks no one is more motivated in saving you money than you are. Depends if you are proactive or passive as to how much involvement you want.

Last time I moved we save plenty by changing to a different account structure with a different bank reaping the rewards now.

[Meehole]

Ours is fantastic and he has dealt with investors heaps so has a huge amount of experience in this domain. Can't imagine being able to call the bank rep to run some numbers past him like we can with the broker.

[Rosco]

I refixed my mortgage for 3 years not long ago using my new mortgage broker. Now my other fixed loans are up for refixing. My broker recommended switching to a new bank and said I could get a good deal. I am worried about penalty for breaking my fixed loans. Any advice? Listen to my broker?

Use your broker. Ask him or her to compare the options for you. ie break fee with cheaper rate with cash contribution, vs current. Get them to do the donkey work, and then report to you.

Ross

[ammar]

I refixed my mortgage for 3 years not long ago using my new mortgage broker. Now my other fixed loans are up for refixing. My broker recommended switching to a new bank and said I could get a good deal. I am worried about penalty for breaking my fixed loans. Any advice? Listen to my broker?

You need to ask the bank. Recently, I broke and shifted my fixed mortgage to another bank without any penalty.

[ATM]

Thanks everyone for your replies. I think I will go and see my broker now and see what she has. I have actually kept my long relation not only with my bank but with my previous broker who helped me get the loan. But that broker has retired and that has led me to that new one now.

[ale]

Ours is fantastic and he has dealt with investors heaps so has a huge amount of experience in this domain. Can't imagine being able to call the bank rep to run some numbers past him like we can with the broker.

Are you able share the details of your mortgage broker. I have been dealing with bank directly (mainly BNZ), but need help from a good broker. Have worked with a couple of them in the past but not so good.
Thanks

[Meehole]

Are you able share the details of your mortgage broker. I have been dealing with bank directly (mainly BNZ), but need help from a good broker. Have worked with a couple of them in the past but not so good.
Thanks

Dave Windler at The Mortgage Supply in Te Atatu.

[ale]

Dave Windler at The Mortgage Supply in Te Atatu.

Thanks for the quick reply. Think I heard of him.