Frequently Asked Questions

Firstly an important Testimonial:

My biggest concern with going to a mortgage broker was "would it upset my Bank?"
 
The first thing I noticed was that it actually strengthened my position in the relationship. My personal banker was suddenly more attentive and agreeable to options, which, of course, David had suggested.  He has the experience and expertise to be able to suggest a far greater range of solutions than I am even aware of, which has always been to my advantage.  He also manages to couch the financial jargon in terms I can understand.
 
Apart from David's friendly, professional manner and absolute honesty, his focus is on my position and needs, not the bank's.  He is able to suggest alternatives and to make recommendations.  In almost all cases we have stayed with our original bank but he has been able to negotiate far more favorable terms than we could.
 
After many years as a client of David's, I now always seek his guidance before making any changes to my mortgages. I strongly recommend you talk to David and get his advice before dealing with the bank, or better still, ask him to deal with the bank for you, it is much easier and more productive.   Adrien Gordon (Christchurch)

Scroll down the page for the answers to our Frequently Asked Questions:

1/ How do you get paid?

Our Disclosure Document (which you will be given) lists the lenders we work with and what they pay us. Unless agreed in advance with you there is no charge to you for arranging a mortgage so long as it remains in place for 2 years.

In some cases we may have to charge a fee if a loan is overly complicated or we are working with a lender who doesn't pay brokerage i.e. Kiwibank and BNZ. This will always be discussed up front with you before we proceed. If in any doubt, just ask.

2/ How do I know my Mortgage Broker won't push the lender paying the highest commission?

Our Disclosure Document lists exactly what each lender pays us. What you will find is there is not much difference between lenders but it is still important that our dealings with you are open and transparent.

3/ Do I have to change lenders?

Our goal is to enhance your relationship with the lender of your choice.  Yes, we can offer you many options but in most cases we are able to simply improve the mortgage you already have (see testimonial below).

4/ Won't the Bank give me a better deal if I go direct?

Our Banks offer exactly the same pricing through us as they do through their Branches or Mobile Brokers. This way the client (you) is able to choose the person they believe will give them the best advice and support.

Our advantage is that we check that the Bank has put their best foot forward and offered you a good deal.

5/ Is my personal information secure?

Yes, we go to great lengths to exceed the requirements of the Privacy Act.  We do not share your information with anyone other than those you authorise i.e. your Bank, Solicitor, Accountant etc.

6/ Why use a Mortgage Broker?

Choice and competition always mean a better deal for you the client. But more importantly it's the invisible things:

• Care: Looking out for you, acting in your best interests. If we feel something's not right, we'll tell you.
• Guidance: Helping you make good decisions and giving answers you understand.
• Protection: Helping you identify what could go wrong and what you can do to avoid or minimise losses.
• Ease: We do the stressful stuff for you, chasing Valuers, Banks, Lawyers, Real Estate Agents.
• Advice: This is a huge topic but includes fixing/floating, how much, how long, loan payments, loan term, interest rates, how to repay sooner, how to pay less interest (a long list).

We are familiar with every aspect of arranging mortgage finance and add so much value to the process.

7/ Will my Mortgage Broker still be there after my loan settles?

This is one of the strengths of David Tillman Mortgages Ltd: we want to help and support you throughout the life of your mortgage. It makes sense really, if we look after you, you'll keep coming back and refer friends and family.

This has been the foundation stone of our success.

8/ Will you help me with my fixed rate if I didn't arrange my loan through you?

The short answer is yes, and in many cases your Bank will pay for you to receive this advice.

9/ Can you access my Account?

No, we cannot and do not access your account. With your permission we can get account information on your behalf such as balances and interest rates.

10/ My Bank keeps pushing their special interest rates but are they my best option?

The cheapest interest rate can be the most expensive.

Why take a 2 year special if interest rates are predicted to rise over the next 5 years? Why take a 5 year special if rates are falling and may be cheaper in 12 months?

It's sad but true, Banks rarely line their specials up with the best strategy for you. At David Tillman Mortgages we are looking ahead with the goal of our clients paying less interest. Remember this saying:

It's not the interest rate that matters; it's the amount of interest you pay

 

11/ What other services do you offer that may help me?

We also offer fee based consultancy services where we assist and advise on:

• Investment property (technical and strategic)
• Wealth creation through better debt management and optimisation
• Mortgage reduction programmes that pay the mortgage off faster and considerably reduce interest costs
• Problem solving and strategic planning. Any fees are advised up front.

Note: We offer a free consultation for you to get to know us and ask questions.

12/ Can I make a lump sum payment? 

Most Banks will allow lump sum payments, however they may charge a penalty. These can vary greatly from lender to lender so feel free to consult with us first.

 

13/ Why should I use a mortgage broker if the Bank will say yes to me anyway?

To ensure you are getting the right mortgage and the best deal for you. If the Bank says Yes, are they going to offer you the best deal?  They have profit margins etc. to meet.  A broker will firstly arrange the right mortgage for your needs. Secondly, they will ensure a good deal by negotiating on your behalf where possible. (Most, but not all lenders will negotiate. We know what they will negotiate on).

There is also the time issue. One visit to us allows you to compare all the options! Also, our mortgage brokers are members of the NZMBA, and this provides protection for you. Bank staff are typically not members of the NZMBA.

 

14/ Why shouldn't I go to the Bank first, and then come to you?

You can, but what do you gain? You have two appointments rather than one in terms of your time commitment. We have a comprehensive list of lenders and products to meet all situations. But, it is clearly your choice. It is important to note that some banks will not accept counter offers from different channels. For instance, if you get a loan offer from the branch of Bank A and then we put forward another, they will offer the same terms as originally offered to you by the branch, meaning we cannot negotiate a better deal.

It doesn't look good for the Bank if they have their customers getting different offers from the various channels. So, this could mean you don't get a deal as sharp as it could have been if you had you come to us directly.

 

15/ When should I call you?

The sooner the better!  If you are considering purchasing property, call us for a pre-approval.  If you are unhappy with your current bank or just want to make sure they are still the best place for you, call us.  A month or two before the expiry of a fixed term interest rate is an excellent time to review your mortgage and banking needs.

 

16/ What happens after I call you?

We arrange for a meeting that takes around an hour, depending on the nature of your circumstances.  This information can be gathered by phone or e-mail for clients outside of Christchurch; however a face-to-face meeting is best where possible.  You will be advised what information to bring for that meeting.  If you are married, or have a partner, we prefer to meet with both, to ensure the best result for your needs. 

At the meeting we aim to learn about you and what your hopes and expectations are.  We then recommend solutions and give you the opportunity to select your preferred option.  Then we prepare the application, send it to the lender, negotiate with them on your behalf, deal with other professionals such as Solicitors, Real Estate Agents, Valuers etc. on your behalf, unless you prefer to deal directly with them. 

Once we have a loan offer, the conditions (if any) are explained to you before you accept.  Meeting times with Bank staff are arranged (if required) so you can set up new bank accounts etc.  After the loan is settled we call you to ensure everything is OK. 

We add you to our Customer Care Program where you receive newsletters and invites to free seminars etc. 

 

17/ How many Banks can you access?

We have access to over 25 lenders.

 

18/ How do I know you are doing what's best for me?

It's in our best interests.  We rely on clients coming back to us for advice and if they need another mortgage or to re-fix a mortgage.  If we don't perform, you won't come back!  Our brokers are all members of the NZMBA.

 

19/ What if I don't really know what I want?

You just need to tell us your situation and what you wish to achieve.  We will ask you for the information we need to gain the best solution for you!  We deal with experts and novices!  We have a great range of professionals we deal with. Repeat and referral business are key to our on-going success.

Our job is to do the work; you just need to tell us about you and your situation, and what it is you wish to achieve.

 

20/ I'm different from others, can you help me?

We have a range of solutions available for many circumstances; for people who are salaried, self employed, have existing debt or credit problems, are asset rich but cash poor, or have no deposit, as well as property investors, non-New Zealand residents and for commercial lending etc.

 

21/ What if I have debts and credit problems but want a mortgage?

We have lenders that specialise in this area.  We can also sometimes convince the main Banks to bend their rules to accept people with credit problems.  Generally student loans are not seen as a problem.

 

22/ How are you different from other mortgage brokers?

We have access to the same sort of lenders that other big mortgage broking groups use.  It is Service that differentiates one company or one broker, from another.  We believe we provide exemplary service and great solutions to our clients. Check our client testimonials, or call in and see for yourself!