As most have already heard, the OCR has gone up to 5.25% last week and we are approaching a crucial point in this economic down cycle when the pinch is about to really be felt. There is always a delayed effect with OCR increases, as it has to flow through to lending and the market. This means the previous increases are impacting us now and it is likely the worst of it will continue through the remainder of this year which still has some time left to run.
Because of this, there is significant and increasing pressure on both household and business budgets at the moment, so ensuring your finances are in the best order possible is your best defence against the economic factors at play. Approaching and starting a relationship with a financial advisor is the easiest step to carrying out this task. Plus it doesn’t cost to have a chat!
Here are 5 reasons to hire a Financial Advisor in Auckland:
- We’re the Professionals:
We spend all day every day talking about the market and finance to banks and various lenders. We naturally accumulate more information than most and understand the implications of decisions and structures with your borrowings.
I am a big fan of giving everything a go yourself, but when it is specialised knowledge, it is more often than not better to consult someone who lives and breathes an industry vs trying to tackle it yourself. It is also a more efficient use of your time to just ask rather than poke around and pick up snippets of information.
- Lender Access
Advisors have access to many lenders all with different risk appetites, rates, LVR’s and qualifying criteria and more. There are so many solutions out there that the general public are unaware of, which means we can help in situations that feel helpless, and save companies and individuals in situations that the main banks won’t usually support. There are several tiers of lenders, and yes, they become progressively more expensive. At the end of the day, it is all about what the plan forward is, how long you stay there for and what is the way out. By just approaching your bank, you will generally not be able to ascertain exactly what is the best solution for you and your situation. This is especially true for business and asset finance or people in complicated situations.
- Support at Any Time
A bank is a big beast, there is often staff turnover, wait times in the call centre etc. Having an advisor is like a cheat code for the industry. You can call or email at just about any time and we are always there with an answer. It’s like having a Chat GPT for finance on hand. It is a lifetime relationship which you often simply can’t get at a bank. We can also provide financial advice that the banks can’t and can give you inside info on what lenders are looking for, like how to present and structure your debt.
- Time and Cost
In most cases, the bank pays us, so generally there is no cost to you. But more importantly, your time is also a huge cost to factor in. When you have an advisor, you only need to provide a set of information once and then we can try at multiple places if required, do all the phone calls needed and email to and fro so you are free to carry on earning money doing what you’re doing. After the first application, we then understand your situation and case, so for future borrowing and maintenance, you don’t need to re-explain yourself and sell your case again, it is simply updated from the previous time.
- Quality of Service
This one may be a little controversial! It’s a generalisation, so will not always be the case. But in my view, financial advisors are a step up in service from dealing directly with the banks. It’s a natural filter that those hungry enough and know the industry well enough, go out on their own and take more risks and responsibility. The other points combined, lead to an all-around better service from start to finish. You just can’t beat the breadth of market knowledge, as well as the flexibility in options and solutions available.
We also only get paid if we find a solution, so are immensely motivated to make sure the client gets what they need and want.