
Although born in Australia Brock is not a 501 but a good New Zealand citizen with a wife and three children. After taking a B.Com. at Victoria University he had a career in finance before becoming self-employed and starting his own company. He now employs four more mortgage advisers and some ancilliary staff. In Australia 70% of mortgages are arranged through a broker and he is sure the same will soon apply here.
He gave three reasons why a purchaser should use a Broker: they get the best deal available, they provide advice and assurance and they are prepared to argue with a bank, and their advice, if taken, is free because the banks generally pay the broker a commission.
The Mortgage Advice Company is in a strong position as most mortgage advisers in the Hutt Valley are sole operators, while his company has a wide base of knowledge and experience. In the last 12 months it has arranged $200million in settlements. It has also been recognised with the Top Advisor and the Top Brokerage Awards. Brock also gives advice on Kiwi Saver. He feels the property market normally moves in cycles and currently is in recovery mode because of net immigration, (96000 this year), the creation of 113000 new jobs last year, a 4.5% growth in wages, low unemployment, and pent up demand after a very quiet period of two years. In addition a National government, if elected as seems likely, is committed to restoring the tax deductibility of interest payments on landlords' mortgages and the easing of the "bright line" test. Furthermore the banks have plenty of money to lend and there are also several other potential lenders. Brock also discussed bridging finance, reverse mortgages, and caveat and guarantor arrangements.
In answers to questions Brock said that 25% of first home buyers now use the bank of mum and dad; you cannot take a mortgage on a retirement village "licence to occupy" home, the best term for taking a mortgage now is probably two to three years as lending rates could well go up another 1%; and if a purchaser does take out a mortgage Brock can generally arrange for the bank to give a 1% cash gift.
Thank you Brock for making a potentially complicated area much more comprehendible.