fbpx

Why do the banks pay mortgage brokers when they already have branches?

Date Published: 28 September 2018

The banks pay The Mortgage Lab to find and prepare the entire application for them. This means they need less people in the branch which is much cheaper for them.

Additionally, the bank can control the type of business they receive. A bank might call The Mortgage Lab and say, “we don’t want high risk clients this month but we do want business owners”. And immediately, they will begin to receive those kind of clients from us. In a branch, the banks are forced to accept whatever client walks through the door.

Related Articles

New Zealanders are no strangers to credit cards, but while these cards are a mainstay in many wallets, they can also be a stumbling block on the path to home…

Read More

Paying Down Your Mortgage or Savings Into KiwiSaver

It’s a question we get asked a lot. If we have an extra amount of money in our salary, should we use the money to pay down our mortgage or…

Read More

If you’re not in finance, you probably most often hear and see the word “leverage” discussed negatively. News articles about failed investors and companies will no doubt (accurately) list overleverage…

Read More

As we approach the end of the first quarter in 2024, many New Zealanders with mortgages are contemplating their financial futures amidst a dynamic and unpredictable economic landscape. Understandably, one…

Read More