What does a mortgage adviser actually do?
An adviser works between you and the lenders. In a typical home-loan job they:
- check what you can borrow and afford, and flag anything that will trip up an application
- compare a panel of banks and non-bank lenders, not just one
- recommend a loan structure: Fixed/floating split, terms, offset or revolving credit
- prepare and submit the application, and chase the lender through to approval
- negotiate the rate and cashback, and coordinate with your lawyer to settlement
- remind you before each fixed term rolls off, and re-negotiate or refinance then
Takeaway: you're paying (through the lender) for lender choice, packaging of the application, and someone doing the back-and-forth for you.
Are mortgage advisers free in New Zealand?
For standard residential lending, usually yes. The lender you settle with pays the adviser an upfront commission (broadly in the region of 0.5%–0.85% of the loan) and often a small ongoing trail. You're not charged for that.
Takeaway: assume no cost to you, and confirm it in the adviser's disclosure document.
Mortgage adviser vs going direct to your bank
| Mortgage adviser | Your own bank | |
|---|---|---|
| Lenders considered | A panel of banks + non-banks | That bank only |
| Who they act for | You | The bank |
| Rate & cashback | Can shop and negotiate across lenders | Take it or leave it |
| Application & lender chasing | Adviser handles it | You do it |
| Cost to you | Usually nil (lender pays) | Nil |
| At re-fix time | Adviser reviews and re-negotiates | You have to ask |
| Best when | Refinancing, first home, self-employed, low deposit, declined before | Simple finances and a competitive offer already in hand |
When is a mortgage adviser worth it?
- Refinancing: weighing a rate saving against break fees, legal costs and cashback clawback is exactly the maths an adviser does daily. See our refinancing guide.
- First-home buyers: deposit rules, First Home Loan eligibility and which lenders are lending to your profile change often.
- Self-employed or contractor income: lenders treat this very differently; the right one can be the difference between yes and no.
- Less than 20% deposit: loan-to-value restrictions mean only some lenders have room, and pricing varies.
- Building or buying off the plans: progress-payment lending is a specialist area.
- Previously declined: an adviser can work out why and place the application where it will land.
When might you not need one?
- You're re-fixing with your current bank and their rate matches the market.
- You've already compared lenders and have a firm, competitive offer in writing.
- Your income and deposit are straightforward and you're comfortable doing the paperwork.
Takeaway: the simpler your situation and the more homework you've already done, the less an adviser adds.
How to choose a mortgage adviser in NZ
- Check they're licensed. They must give regulated financial advice under a Financial Advice Provider licence and be listed on the Financial Service Providers Register. Background on the regime is on the FMA website.
- Read their disclosure document. It sets out their lender panel, commissions, any fees and conflicts of interest.
- Ask how many lenders they work with. A wider panel means more options; a very narrow one is worth questioning.
Check your numbers first
Whether or not you use an adviser, it helps to walk in knowing what "good" looks like. MyRateCheck compares your current loan against today's lowest available rate for your fixed term and shows the interest and time you could save — free, in about a minute, with no credit check. If it's worth acting on, a licensed NZ adviser can take it from there.
Related reading: refinancing costs & break fees, how cashback works, how NZ mortgage rates are set, or how MyRateCheck works.
Common questions
Are mortgage advisers free in New Zealand?
For most residential home loans, yes. The lender you choose pays the adviser a commission, so there's usually no fee to you. An adviser may charge a fee in less common cases — very small loans, commercial or complex lending, or if a deal needs to be reworked repeatedly — and they must tell you before doing any work.
Is a mortgage adviser better than going to my bank?
It depends on your situation. Your bank can only offer its own products; an adviser compares a panel of lenders and can match you to one more likely to approve you or price you sharply. If your finances are straightforward and your bank's rate is competitive, going direct can work just as well.
Do mortgage advisers get better interest rates?
Sometimes. Advisers generally access the same carded rates you would, but they know which lenders are currently competing hardest and can often negotiate a discount or a larger cashback, especially when refinancing. The bigger value is usually lender choice and how the application is packaged, not a secret rate.
Are mortgage advisers regulated in New Zealand?
Yes. Since March 2021, anyone giving regulated financial advice to retail clients must operate under a Financial Advice Provider licence from the Financial Markets Authority (FMA) and be listed on the Financial Service Providers Register. They must also give you a written disclosure covering fees, commissions and any conflicts of interest.