Build a new house is a bid deal and you need to plan well.
When most people decide that they want to build a new house, the first thing that they do is head down to their local bank where they hold their current account to check if they are eligible to take out a mortgage for the new build.
This might seem like the most sensible thing to do, but most bank staff have little experience in new build finance and nor do they know what its like to build a new home.
Instead of visiting your bank, you would be better off speaking to a mortgage broker that understands how new build finance differs from the basic mortgages.
But where can you find a good local mortgage broker that knows about new builds?
In New Zealand you could use myself (Stuart Wills) or one of the mortgage brokers from The Mortgage Supply Company, or if you want to look elsewhere here are a few tips to help you.
1: Finding a Mortgage Advisor or Broker Online
The internet has simplified the process of getting financial advice in many ways, but you need to know what to search for.
There are many mortgage brokers, banks or some of the non-bank lenders that claim to be able to assist with new build finance, but many have limited products or do not really have the experience that will give you the confidence needed.
When looking for a mortgage broker to help with your new build I would suggest that you;
- Always try and go for one who is a ‘whole of market’ broker, as these kinds of brokers have access to more loan options.
- Find a mortgage broker with vase new build experience, as these brokers can help you with more than just arranging the right amount of finance.
You should also avoid those brokers that are owned by a bank as they are tied to just one of maybe a few different lenders and therefore you miss out on the full choice. It’s the same as going direct to a bank, and as discussed you would want to avoid this approach too.
2: Asking Friends or Family
Another great way to find a good local mortgage broker is to ask trusted friends or family members whether they have dealt with anybody good themselves.
Some people might not like the idea of doing this as they don’t want to share their financial plans or goals with people that they know, but if you don’t mind people knowing that you are looking to buy a house, then having one of your friends or family members recommend a good broker could be a great way to find one in your area who has a good reputation.
Just be careful with friends and family as they make lack recent experience…
3: Google Search Mortgage Brokers
Of course, you could simply input the term ‘mortgage broker for new builds’ or ‘new build finance’ or new build broker‘ into Google to see a list of brokers in your local area; however often the list may include those brokers outside of your area.
It might be better to Google ‘West Auckland mortgage broker‘ or ‘North Shore mortgage broker‘ depending on where you live or work.
If you want to get a broker that is even more local you might want to try being more specific and type ‘Hobsonville mortgage broker‘ or West Harbour mortgage broker‘ etc … depending on your location.
Having A Good Local Mortgage Broker Can Help
Mortgages are typically one of the largest financial commitments that people have, and new build finance can be a little more complex than the typical home loan, so it is worth ensuring that you are able to get the best advice and have easy access to ongoing advice.
While the loan can be large, it’s often the little things (advice) that can make all the difference.
This is is where a good local mortgage broker that has experience with new builds helps and potentially save you a lot of money and stress.
Never forget to have options and protection – like mortgage protection cover (even before you start) to cover those big risks and a little extra cash for those unexpected things that tend to pop up.
Here we have suggested 3 simple ways to help you in your find a good local mortgage broker that understands new build finance and can therefore offer some great advice and help you with your new build finance.
