Client Story 4
Young Family with High Daycare Costs
Clients: Emma C. – Tauranga (BNZ Bank)
The
Challenge:
Emma and her partner had two young children in daycare, which significantly impacted their disposable income. Despite earning good salaries, banks were hesitant to approve a mortgage due to their high monthly outgoings.
The
Solution:
I worked with BNZ to present a future-focused budget, demonstrating how their expenses would decrease as their children moved into primary school. I also structured their mortgage with an initial lower repayment period to help them manage costs until their childcare expenses reduced.
The
Outcome:
ABNZ approved their loan, allowing them to purchase their first home while still comfortably managing their family expenses. Their mortgage plan includes flexibility to increase repayments once their financial situation improves.
Let's Talk
Your mortgage is your biggest yearly cost, so why wouldn’t you talk to an unbiased expert about what is best for you? Contact me today.
Considerations to explore:
If I go to the bank directly, do I save on the ‘broker commission’, or do I not get a cashback as that goes to the broker?
This isn’t how it works in practice. The bigger picture is that brokers are essentially an outsourced service for banks, helping them manage clients, which means banks save significant costs by working with brokers.
Some banks offer brokers better rates than those available to direct clients, and many are open to negotiating rates based on what’s currently being offered in the market.
So, can you negotiate on your own? Absolutely. But brokers are experts in negotiation—we do it every day, and we’re up-to-date on the latest offers from various banks, since I receive weekly updates on their best rates.
Let's Talk
Why should I use a Broker?
Your mortgage is your biggest yearly cost, so why wouldn’t you talk to an unbiased expert about what is best for you?
Brokers are selling advice and knowledge, not loans. The banks sell loans, we advise you which banks loans are the best suited to you!
Do Brokers favour banks that pay them more?
Honestly, I believe the only way to build a lasting, referral-based business is by putting clients first and serving them well every single time.
Some banks pay a one-time upfront commission, while others offer a "trail" commission that’s paid over time, but generally, all the banks pay similar commission so it makes no difference to me which bank you chose!
Want to try negotiate directly with a bank – here are some pointers:
If you're planning to negotiate directly with your bank, I recommend highlighting why you're a valuable customer—such as your years with the bank and your good account history—and see what they offer. Once they respond, if you find better rates elsewhere, go back and push for a better deal, mentioning the more competitive rates other lenders are providing.
Keep in mind that banks will also consider how easy it is for you to switch, including whether other parts of your home loan are locked in at lower rates and if you're within the cash back clawback period (typically within 3 years, when you may need to repay part or all of any cash contribution they gave you). These factors can increase your switching costs, which might limit how much your current bank is willing to negotiate.
Good luck! If you'd like help with the process, I’m happy to assist.
Note: The above is general guidance and not financial advice.