You do your best to work with the right people. After all, you know how important good advice is to your success. But sooner or later, especially as you grow more financially secure and confident, you will come to realise that what got you to where you are today could very well stop you from getting to where you want to be tomorrow. And that is especially true when it comes to your mortgage adviser.
A good mortgage adviser is one who buys into your overall vision for financial success and shepherds you to that endpoint with equal measures of considered audaciousness and cautious optimism. He or she encourages you to take bold steps and stops you from burning yourself over unnecessary risks. This good adviser understands what it takes to build wealth. And what it takes to build wealth goes beyond simply saving money.
Real, meaningful, and sustainable wealth is so much more than money in the bank. It is advancing your net asset position. It is creating one or more robust income streams. It is spending willingly but also mindfully. It is having certainty, control, and confidence in your financial affairs. All of these elements should be part of your adviser’s lexicon. If all your adviser is so myopically obsessed with saving you a few measly points in interest rate, how can he/she possibly have the mind space and skillset to make you money and advance your financial position? To me, these people are not advisers, they are merely sales agents.
That brings me back to the point of this article. A bad adviser, takes too simplistic an approach to dispensing ‘mortgage advice’. He or she values the thrill of a short-term ‘win’ (cheap mortgage) over putting in the hard yards for long-term stability and prosperity (strategic leveraging). This person readily sidetracks you into the misguided belief that saving money (the cheapest mortgage) is the same as making money (the best mortgage for you). It is not. So here it is, the one sure sign it is time to fire your mortgage adviser – if he/she sells you a mortgage for no better reason other than its rock-bottom price.
The real danger is the insidious and lasting effect bad ‘advice’ has on your financial prospects. You don’t notice it day-to-day because you spend less (on interest) so you perceive yourself as receiving a higher return. What isn’t as apparent are the missed opportunities thoughtfully executed and curated (and sometimes more expensive) loan deals open the door for you to which could very well accelerate your asset position in the long-term and significantly overshadow the interest savings you are making today. Why am I putting this out there and essentially dissing on some of my industry colleagues? Because wealth creation and long-term financial stability are important. What got you to where you are today could very well stop you from getting to where you want to be tomorrow. The last thing I want, for you, is to wake up tomorrow to find that you are stuck on today.
So the next time you are tempted to refinance base on price, I encourage you to take a step back and ask yourself what else, apart from price, is this deal and this adviser bringing to the table? The answer to this question is telling enough to guide you to make the right decision about your alliances.
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