Most of the mortgage brokers in the market provide a general service, which includes finding mortgages for Mum and Dad buyers, first home buyers and property investors. While there were obviously variations between clients and their own particular issues, in most cases the work is very similar from client to client. This is the case with most clients, and so obviously most mortgage brokers are dealing with these clients.
There are some areas of specialisation where particular mortgage brokers have found a lucrative niche that serves them well in the market. This may include brokers who specialise in rural properties or commercial properties, and it may include brokers who specialise in developments, either residential or commercial. These areas require specialist skills and a lot of experience in the market, and more often than not the specialist mortgage brokers enjoy something of a monopoly in their little niche.
Another area that some Brokers are finding lucrative for specialisation is the area old stressed borrowers. Mortgage brokers have met stressed borrowers, but only a handful of mortgage brokers have the competency to solve virtually every stressed borrower’s problems. Often for the stress borrowerthey are simply unable to make mortgage payments or are rapidly running out of money to make mortgage payments, and they are very afraid of losing their property in a mortgagee sale for example.
A more normal broker would try their hardest to find a financier or a bank to provide short term bridging finance while the owner gets their act together and gets the property sold for example. But no matter who they talk to they may not be able to find somebody who was happy to finance the deal, and so the customer is left to fend for themselves and probably end up if not going bankrupt then being wiped out financially. For the handful of brokers who really specialise in the stressed borrowing market, there are always other solutions that may simply appear out of left field to the average mortgage broker.
For example the broker may be able to come up with a deal that involves a financier that minimises the financials risk, and although it may result in less cash at the end for the property owner it may be the difference between staying solvent and going bankrupt. For more information, visit https://nzmortgagebroker.net.
Brokers like these very niche markets because it can be a lot more lucrative for them than the normal residential borrowers, simply because their clients are fundamentally desperate for solution and so will take any solution at the broker can come up with. In the normal residential market mortgage brokers have to allow for 70% of their clients not being successful in the end, and this can place a big financial strain on the mortgage broker.