Independent Mortgage Brokers

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In New Zealand a large number of mortgage brokers operate independently, rather than be tied to a large mortgage broking firm or group. In the main these independent brokers simply prefer to be independent, and they back themselves to find enough new business to keep them financially healthy.

Theresa Lee, independent mortgage broker

These brokers need special strategies, simply because new business generation tactics requiring a large marketing budget are just simply unavailable and impractical to the small mortgage broker. In general an independent mortgage broker has significant prior experience in the banking industry, and so has a good network of bankers and banks, non-bank lenders and other professionals in the financial sector, visit www.NZMortgageBrokers.net for more information. They will also have good financial management skills, which is important in the mortgage broking business because of the very variable nature of their income.

On top of their financial skills the independent broker will also need good marketing skills, simply because they need to find their own new business. A typical approach for the independent mortgage broker is to have a list of good real estate agents that they network with frequently, and this can be a regular and lucrative source of new business if the agents themselves are particularly successful. Find out more about mortgage brokers Wanganui. They can also attend open homes and other public events attended by potential house buyers, and make sure they get their name out there. All of this can be a lot of hard work, and for many independent brokers this can make up to 50% or more of their work during any one week.

This is only really possible because the average amount of work required or anyone customer application is very low in comparison to the size of the commission that the broker will earn for that loan. A $500,000 mortgage for example may occupy the broker for 2 hours in total if they don’t need to drive to see the client, but can result in a commission of over $3,000.

If the independent broker can find a good steady source of new leads then this can have very lucrative results. In reality independent brokers can handle probably 10 times the amount of new business if they didn’t have to go out looking for this business on the first place. The interesting aspect for them is that a 10x increasing new business means a 10x increase in the bottom line, and they may still only be doing a standard 40 hour week. Many brokers would kill for this sort of opportunity.

Mortgage Broking for Farmers

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Farmers buy and sell farms across New Zealand throughout the year, and the value of these transactions are generally enormous in comparison to the residential property market. In fact most city dwellers who own their on property or aspire to own a property simply have no idea of the scale of the transactions going on in rural New Zealand.

Annie Harris has just started a new career as an independent mortgage broker

Farms are being expanded in size and so farmers are purchasing adjacent or nearby properties. New farmers who have come up through the ranks of contract milkers and then sharemilkers are coming onto the market for their first farm. Large sheep and beef farms are being sold to dairy farmer’s or dairy farm consortiums for conversion to a very large dairy farm. Retired farmers are selling up. And so the list goes on. For the best mortgage brokers in Hastings, click this link.

In an average month in New Zealand around 100 farms will be sold, and the average value of the farms will be multiple millions of dollars. Almost every farm purchase will need financing of some sort, and farm financing requires specialist banking. In many cases the purchasers will have a strong relationship with their bank, and will be able to negotiate directly with their bank for the mortgage. However there is still a requirement for specialist mortgage brokers, as many clients will want to know that they are getting the best deal on the market or they may simply not be happy with their own bank. For more information check out MortgageBrokers.org.nz.

For mortgage brokers in the farming sector there are added challenges as compared to the residential sector. The scale of the mortgage means that the banks have much stricter criteria, and the broker will need to package the mortgage application in terms of a solid business plan and balance sheet for the farmer. They will need to work closely with the farmer’s accountant and other advisors, in order to build the best application.

In many cases the broker will need to arrange finance through more than one bank or finance company, as both the farmer and the banks may wish to spread their risk. For the broker this work can be very lucrative if they have the right skills and experience, as the values of the mortgages they arrange can be very high indeed. This work is generally limited to a small group of well known mortgage brokers with a good reputation in the industry, and these reputations are hard won over a long time and so are fiercely protected by the mortgage brokers.

Building a Home for Retirement

Helen Ling, mortgage broker

Many people nearing retirement decide that they will be better off in a near new or brand new home, and in particular built on flat land. A new house is much easier to live in, as the layout and all the fittings modern, the plumbing is all mains pressure, the light fittings are all modern LED, and the house is fully insulated and warm and easy to live in. Most new modern homes have a heat pump, which is an ultra efficient means to heat and cool a new home.

People nearing retirement also generally choose to live on flat land, as this is just much easier for access and it makes it much easier to move around on the property. The homeowner generally also gets to choose the layout of the property, and they can make sure it is just perfect for their long-term needs. A new home is very attractive for couples that are nearing retirement, and for most people the financing of this is very straightforward. Helen Ling, a mortgage broker who specialises in mortgages for retirement homes, believes that this trend is evergreen and is not likely to change any time soon.

It is generally advised that the homeowner use as a mortgage broker, because the broker can simply make certain that the mortgage that they end up with or whatever financing is appropriate for their changing circumstances. In most cases homeowners upgrading to a brand new house will be able to sell their existing house which often will be freehold. While the new house will probably be considerably more expensive than their old house, they can use the fact that their old house is freehold to make a sizeable deposit on the new house and keep their borrowings to a minimum.

If they have been careful with their savings they may have saved enough to ensure that they can build a new house and not even have a mortgage, and in this case the poor old mortgage broker will not even be needed. This is a very attractive solution for homeowners, as they will be left presumably with enough cash to have a reasonable retirement plus they will have a brand new house that will have minimal maintenance requirements for many years and will be very cheap to power and run and very pleasant to live in. If they have played their cards right then they could end up in a brand new house with no mortgage and a tidy cash pile that will take them through their retirement, and they should be able to have a very comfortable life even on the government pension. This group of house buyers are not a very good target for mortgage brokers, particularly in Wellington and Porirua.

The Humble Nelson Drainlayer

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In Nelson the drainlayer is largely regarded as the unsung hero, particularly after they have been called out it short notice to repair a blocked and overflowing sewer pipe. The householder is generally in a panic because they have no way of dealing with the problem themselves, and so they are always due to be relieved when the drainlayer has done the work and very happy to pay they generally fairly high fees that are charged.

Repair work can be lucrative for the drainlayer sector, but the work is always pretty disruptive for the drainlayer, as it is always urgent and almost always occurs at inconvenient times.

The best work for drainlayers Nelson in terms of convenient times is installing new drains for a new property. This is specialist work as it has to be done to a high degree of professional competency, which means the drainlayer needs to carefully work through the issues of slope for the drain, and exactly how to tap into the main sewer line in the neighborhood. The work is also physical, and sometimes there is insufficient space on the property to get in a mechanical digger, and so the drainlayer must do the digging work by hand.

The drainlaying profession is highly regulated, for obvious public health and work quality reasons, and so the drainlayer will have to put up with his work being inspected before they can backfill the drain. This is of course to the drainlayers benefit, as if the work has been inspected by a fully qualified inspector then the drainlayer will not be held personally responsible if there are some problem sometime in the future.

The Nelson drainlayer will probably find there’s a new house build on an existing property will have some complexities, particularily if the drainlayer has to work around existing drains and sewers. The problems can become very difficult if a sewer needs to be replaced from an existing bathroom or toilet all the way out to the main neighbourhood sewer line, as this can often mean excavating a trench by hand then difficult and tight working conditions.

Pretty much every job that the drainlayer works on will involve working with or near raw sewage, as even installing a new drain for a new house will require tapping into the existing main sewer line. Every other tradesmen on a building site who’s this as does every householder who watches the drainlayer workout, and for this reason most people in any community how have a very large amount of respect for the humble Nelson drainlayer.

Constructing A New House

 Work is able to start on the construction of a new house once all of the consents have been attained from the local City Council. Depending on the location of the property the developer may have to carry out any number of tasks set out by the council in order to comply with their consent, for example in a flood prone area the developer may have to build up the land under the house buy as much as half a metre.

In most cases the builder will have to put some sort of solid foundation down to support the concrete floor, and 1 typical technique is called Rib Rafting, which involves hammering a large number of posts at least two metres into the ground.

Once the land under the house has been prepared and compacted, then the Builder can start by laying out the boxing for the concrete foundations and floor. To the untrained eye this can lock very complex given that it includes large blocks of polystyrene and a lot of Steel reinforcing laid and tied and trenches between the blocks of polystyrene. In actual fact all this is really just a collection of concrete beams with steel crossing the building, with the polystyrene providing a boxing so that when the concrete is 
finally board all that is left is a nice slick polished floor, with drainage Plumbing installed where required.

Once the concrete floor has set and cured,  generally after two to three days,  then the builders can start work. This will generally involve erecting all of the timber frames and roof trusses that have been prefabricated offsite. The job of the Builder at this stage is to make sure that all the frames are erected true and as accurate as possible, and they also must do this work as safely as possible.

 In a previous era the Builder will cut and assemble the frames on site, and then erect the frames using a hammer and two or three large boxes of 4 inch nails. She was obviously a time-consuming and exhausting job.  The modern builder will receive all the framing and roof trusses delivered on site, and all I have to do is stand them up and then nail and together using the ever-present nail gun. This is it vastly faster then for the previous generation of builders.




 Once the frame is up then the next important step is for the door Joinery and  and window Joinery to be installed, and then for the roof to go on, and in most cases in New Zealanders is generally long run roofing iron laid over roofing battens and roofing paper. Once the roof has been installed satisfactorily then the outside cladding should be installed,  imitate that point the house is able to be locked up.

 From then on most of the work required by the Builder best to install the internal lining on the walls and ceilings and then to fit and finish the house and perhaps build the parts around the outside.