A new financial advisory and mortgage broking business has launched in Devonport, offering mortgage broking services as part of the well-established Mortgage Supply Company.
Run by owners Richard Trounson and Mike Simpson, the business has access to a number of bank and non-bank mortgage lenders and will advise on lowering existing mortgage payments and securing the lowest-cost lenders.
It will also offer advice to parents on how to help their children to get onto the property ladder using tools such as Welcome Home Loans and KiwiSaver contributions.
“Often parents have got a lot of equity, but they don’t realise that equity is almost like cash in the bank,” owner and operator Richard Trounson told NZ Adviser. “My view is that if you can help your kids out at an earlier stage, then that’s a sensible and beneficial thing to do. So long as they’re not dramatically different, it’s better to pay a mortgage than it is to pay rent.”
“With ownership comes a lot of responsibility, and it also puts these people on the ladder of potential affluence- most parents have become quite well-off, just because they own a property. If you can get a person onto that ladder, then over time, you’ve got less strain on the welfare system. So I think that property ownership is a huge social benefit, and we should be trying as much as we can to make it happen.”
Trounson also said he’d like to see first time buyers have the opportunity to own an investment property rather than be owner-occupiers, as many prefer to live at home and focus on saving up money.
“The key thing we hope to achieve is to help people make wise choices regarding their mortgages and hopefully save them some money,” says Trounson.
With regards to the broker industry, Trounson says the need for the service is as strong as ever.
“I definitely see the industry as growing. About a third of mortgages are originated by this channel, and people still want to speak to someone about their mortgages. It’s getting harder and harder to speak to someone at a bank, and most people do want to be able to talk to someone and get quality advice.”