Brokers debate mortgage reduction operators

Mortgage reduction companies claim to provide borrowers with a system for paying off their home loans faster, charging upfront fees of $3,000 or more for the service.

But most mortgage brokers already provide such information as part of their normal service with no additional fees involved.

Usually, it is the more naïve borrower who ends up paying mortgage reduction companies’ fees.

At the NZMBA’s recent annual meeting, incoming chairman Geoff Bawden said that while NZMBA rules discourage mortgage reduction companies, they don’t prohibit them.

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