Well advised
When it comes to money matters, expert guidance is more important than ever in today's tough economy.
photo Jahl Marshall
As a lender for more than 20 years, Brooke Reynolds has certainly worked her way up through the finance world. She started as a full-time casual teller and worked in almost every bank position imaginable. She then went on to work as a mobile mortgage lender and later studied conveyancing. Today, she has extensive, well-rounded knowledge of the whole banking process, not just lending, and owns half of Rapson Loans and Finance in Tauranga. Brooke loves using her valuable and vast wisdom to help others. Here, she tells us why a financial advisor is an important asset to have, and what to expect from them in terms of advice, knowledge and assistance.
Financial advisors are the go-between with individuals and the banks/lenders. They get to know you and understand your needs and then relay that information to the lenders. The relationship you form is important as the more they know their clients, the easier it is to achieve exactly what you want. Everyone has different needs − no two people are the same − and your adviser needs to be able to manage that and not take a ‘one fits all’ approach.
But can’t I just do that myself, you ask? Yes, absolutely you can. If you don’t mind making the appointments with lenders, taking time off work and then following up with further information and research. It all costs you time and effort, and then if they say no, what do you do? Advisers are able to go to multiple lenders and will be able to tell from the conversations you have had which banks have the policies and products that would best suit your situation. Banks have different policies and products. They are not all the same. Advisers know this and can navigate it all for you.
The majority of the time, it costs you nothing to consult a financial adviser; however, in the situation where you are using a second-tier lender/commercial lending/equity lending, there may be a fee. Most of the time this can be capitalised onto the loan. The banks will also claw back any commission paid if the loans are repaid and closed prior to 27 months (this varies with lenders, some are less) but this is a conversation to be had at the time of engagement.
Financial advisers are highly regulated. Absolutely everything must be disclosed, from what we are paid, to complaints and clawbacks, and so on. Our files are reviewed and we could get a visit from the FMA at any time. This includes any email correspondence, text messages and phone calls.
All in all, financial advisors are a valuable resource and tool to lean on for knowledge, advice and help with applications. Look out for my column in the next issue if you’d like to learn about different types of loans and the importance of structure.