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Financial Coach vs. Mortgage Advisor – What are both roles and how are they different? 

Two important finance professionals that every homeowner should have in their corner are a mortgage adviser and a financial coach.  

Each have a different role but they work together to ensure that you fully understand how your mortgage works, how to get the best mortgage for your situation, how to use homeownership to build wealth and more. 

In this article we’ll explore what a financial coach is, the difference between a financial coach and a mortgage adviser and why you need both.   

Financial Coach: Your Money Buddy 

 “Coaching in its essence, helps you to get more out of an area of life that you’re wanting to focus on i.e. fitness, business etc. than you would be able to otherwise. Financial Coaching is helping you get more out of your money and get more out of yourself financially than you could do otherwise.” (Kelsa Dickey, Fiscal Fitness) Financial Coaching is a beautiful mix of mathematical and financial calculations and also behaviour changes and habits, helping you to take action with your money. 

 Here’s what they do: 

  1. Set Financial Goals: Do you have dreams you want to achieve with your money? Maybe it’s buying a holiday home or having that bit of extra time with the kids. A Financial Coach helps set your financial goals with the end in mind and gives you practical steps on how to get there.  
  1. Creating a Spending Plan and Sticking to It: A spending plan is like a plan for your money. It shows you how much you can spend and save each month and also uncovers patterns and hidden expenses within your spending. A Financial Coach helps you create a spending plan that fits in with your lifestyle and your financial goals. 
  1. Crush Your Debts: If you have personal loans, credit card debt or a mortgage, a Financial Coach can help you come up with an actionable plan to pay your debt off quickly, without limiting your lifestyle. They’ll also give you tips and strategies to manage your debt and improve your credit score. 
  1. Help You Invest in Your Future: Investing is like planting seeds for your future money garden. A Financial Coach can teach you about different ways to invest your money so it can grow over time, ensuring you and your family are better set up later in life.  
  1. Be Your Biggest Cheerleader: Managing money can be tough sometimes, but a Financial Coach is there to support you every step of the way. They’ll celebrate your successes and help you stay motivated, even when things get tricky. 


The Mortgage Advisor: Your Homebuying Guru 

 Let’s say you’re ready to buy a home – exciting, right? But it can also be a bit overwhelming. That’s where a Mortgage Advisor, commonly known as a mortgage broker, comes in. They’re like your personal mortgage guru who can walk you through the process of securing the right mortgage for the property you want to buy and ensure you get the best deal for your situation.   

Here’s what they do: 

  1. Explaining Mortgage Structures: Mortgages are loans you use to buy a home, but there are lots of different kinds. A Mortgage Advisor helps you understand your options and choose the one that’s right for you, based on your goals. Say you wanted to pay off your mortgage in 15 years as opposed to 30 – a Mortgage Broker can help you set up your home loan accordingly so you can pay off the maximum amount possible without running into fees from your bank.  
  1. Checking Your Finances: Before you can get a mortgage, you need to prove you can afford it. A Mortgage Advisor looks at your income, savings, assets and debts to see how much you can borrow from the bank. 
  1. Finding the Best Deal: Interest rates and mortgage terms can vary, so it’s important to shop around. A Mortgage Advisor helps you compare different lenders and negotiate the best deal for you – this can include cash back deals, a lower interest rate etc. Mortgage Brokers work with both top and second tier lenders and will recommend several options based on your financial situation.  
  1. Helping with Paperwork: Buying a home involves a lot of paperwork, but don’t worry – a Mortgage Advisor will ensure you’ve ticked all the boxes and make sure everything’s in order so that you can put your best foot forward with the bank and get approved.  
  1. They work for you: Unlike the bank, a Mortgage Broker works for you, ensuring your interests are taken care of and that you’re not only receiving the best deal, but that your home loan is properly aligned to your goals.  
  1. There for You for the Long Haul: Even after you’ve bought your home, a Mortgage Advisor is still there to help. Whether you have questions about your mortgage, are wanting to refix or refinance, or are wanting to buy an investment property or move into a bigger home, your Mortgage Broker has got your back. 
Mortgage Advisor vs. Financial Coach

So, What’s the Difference?  

In simple terms, Financial Coaches help you with all aspects of managing your money, while Mortgage Advisors specialize in helping you buy a home and get a mortgage. They’re both important allies on your money journey, but they focus on different parts of the puzzle.  

How Do Mortgage Advisors and Financial Coaches work together and when could I benefit from using both?  

If you think that a Financial Coaches job and a Mortgage Advisors job slightly overlap, you’d be right. After all, purchasing a house is one of the biggest financial decisions you’ll ever make and ensuring you’ve got a proper plan to pay off your mortgage can mean the difference between hundreds of thousands of dollars in interest that you’ll end up paying to the bank over your mortgage term.   

When You’re Looking to Buy a House 

First, a Financial Coach can help you get your finances in order. They look at things like how much you earn, how much you spend, and any debts you might have. They can help you make a plan to save money and pay off debts, so that you’re in a good position to buy a house. When you’re ready to start looking for a mortgage, your Financial Coach and Mortgage Advisor can work together to ensure you put your best foot forward with the bank when it comes to approving your application and ensure your mortgage is structured in the best way to suit your financial goals.   

Once You Have a Mortgage 

Your mortgage is one of, if not, the biggest debts you’ll ever have, and paying it off more quickly than your 25 or 30-year term can mean the difference between hundreds of thousands of dollars in interest. A Financial Coach can help you come up with a spending plan so that you can put every spare dollar into paying down your mortgage faster (we’re talking shaving decades off) and doing this all without affecting your lifestyle. A Mortgage Advisor can help you structure your loan so that you won’t have to pay any penalties when paying your mortgage off in large chunks or in increased regular repayments.   

When You’re Thinking About Purchasing an Investment Property  

Property has one of the highest returns and can be a great way to grow your passive income. A Financial Coach can assess your financial position and coach you into buying an investment property and a Mortgage Advisor can assess your equity and help you get another home loan, again, structured to align with your financial goals.   

Whether you’re trying to save money, pay off debt, or buy a home, having the right people in your corner can make a big difference. Financial Coaches and Mortgage Advisors are a valuable resource when it comes to helping you succeed in your money goals and property endeavors, and at Futurebound,  we’re stoked that we can provide Kiwis with both in order to maximize your savings, make smarter decisions when it comes to your money and grow your wealth for years to come.  

If you’re wanting to learn more about how both roles can help you achieve financial greatness, book in a 15 minute mortgage advice consult by clicking the button below.