Self-Employed Home Buyers, and Why Mortgage Brokers Love Them
Home buyers who are self employed can find the banks unhelpful when raising a mortgage when they want to buy a new home or upgrade their existing home. A couple may have worked with one of the main banks for 20 years and have given them all of their mortgage lending and insurance business, but if they are self employed and want a mortgage for a new home then for the bank they will just be too hard.
There is a very big demand for new homes in New Zealand, and Banks find it much easier to work with homeowners who have Rock Solid employment, good income, good savings and a good clean banking record. Banks are generally unwilling to go that extra mile for those customers who have even a slightly different situation.
A self employed couple for example could be living in a small town in New Zealand and earning what would be for anybody in New Zealand a very healthy income, and they could even own an older freehold property and have access to a useful deposit, but the bank may see this as just a bit too difficult and not worth putting any time into. The problem in small town New Zealand is that there will be comparatively very few mortgage being written in comparison to their big city counterparts, and therefore it is unlikely that the local mortgage brokers Southland will have the essential tools in their tool kits to solve difficult problems like this.
In this situation the best solution for the customer has to go to a big city mortgage broker, who would have the necessary qualifications and experience and will have operated right across New Zealand in Urban and Rural situations. While the broker and the customer maybe a long distance apart, in today’s high speed Internet environment this is of little consequence, as they can have their conversations over Skype video while the customer and broker are finding out about each other.
The customer in the small town cannot be expected to know or trust any large city mortgage brokers, but they may trust an intermediary to find a good broker for them. There is a commercial opportunity in New Zealand for an online service that provides a broking service for mortgage brokers in Otago, particularly where the customer requirements different from the norm and require a more creative solution. Big city brokers tend to understand what the banks are looking for and what they won’t miss if they don’t see it, and so they can help the customer to more creative and perhaps take certain steps to make themselves more presentable to the bank or non-bank lender.