Key Takeaways
Choosing a mortgage adviser in NZ is about more than who quotes the sharpest rate on the day. A good adviser works under a licensed financial advice provider, explains how they are paid, compares lenders that genuinely suit your situation and stays useful long after settlement.
- Check the adviser is registered on the Financial Service Providers Register and works under a licensed financial advice provider.
- Ask which lenders they can access and whether any are excluded from the comparison.
- Get the payment model in writing, including lender commission, any fees and any clawback conditions.
- Expect a clear explanation of the lending rules that affect you, such as LVR and debt-to-income limits.
- Treat pre-approval as a guide to borrowing capacity, not a promise of finance.
What a mortgage adviser does in New Zealand
A mortgage adviser helps you understand your borrowing options, compares lenders and loan structures, and prepares an application that presents your finances accurately. The aim is a loan you can comfortably service, set up in a way that fits your plans, rather than simply the largest amount a lender will approve.
The right adviser makes the process clearer without making decisions for you. You should finish each conversation knowing what is being recommended, why, and what the main trade-offs are.
How advisers compare lenders and loan products
An adviser usually starts with your income, deposit, debts, spending, property plans and comfort with repayments. From there they can compare suitable lenders on pricing, credit policy, fees and flexibility. This matters because lenders assess the same borrower differently, particularly for self-employed income, smaller deposits, new builds or investment property.
A useful comparison explains why a product fits, where it may be less suitable and what assumptions sit behind the recommendation. You should come away knowing what you would repay, how long any fixed rate lasts and what happens when that period ends.
Mortgage adviser or going direct to your bank
A bank can advise on and arrange its own lending. A mortgage adviser can compare options across the lenders they have access to, which can help when your circumstances do not fit a standard application or you want a wider view of the market. Neither route is automatically right for everyone.
Some borrowers value a direct relationship with one bank, while others want help with the comparison and paperwork. Our guide to using a mortgage adviser versus going direct to the bank walks through the differences in more detail.
When specialist mortgage advice helps most
Some applications need more context than a simple salary and deposit calculation. Advice can be particularly useful in these situations:
- You are self-employed or have irregular income such as commission or contracting.
- You have a deposit under 20 percent and need to understand low-deposit options.
- You are building a new home or buying off the plans.
- You own more than one property or are buying an investment.
- Your fixed rate is ending and you want to compare a refix with refinancing.
In each case, the goal is to present the facts accurately and find lenders whose criteria genuinely fit them, not to make a complicated situation sound simpler than it is.
How mortgage advisers are regulated in NZ
The current regime began on 15 March 2021 and, since 16 March 2023, anyone giving regulated financial advice to retail clients in New Zealand must do so under a financial advice provider licensed by the Financial Markets Authority (FMA). That includes mortgage advice. Knowing how the regime works makes it easier to check an adviser before you share personal documents.
Licensing and the Financial Service Providers Register
Individual financial advisers must be registered on the Financial Service Providers Register (FSPR) and linked to the licensed provider they advise on behalf of. You can search the register online to confirm an adviser's registration and the provider they work under. If an adviser cannot tell you which licensed provider they operate under, treat that as a reason to pause.
The Code of Professional Conduct
All financial advisers must follow the Code of Professional Conduct for Financial Advice Services. The Code requires advisers to treat clients fairly, act with integrity, give suitable advice, make sure clients understand the advice and protect client information. It also sets standards of competence, knowledge and skill, including ongoing professional development.
Under the Financial Markets Conduct Act, advisers must also prioritise your interests where there is a conflict of interest, and take care, diligence and skill when advising you. The FMA's guidance on paying for financial advice explains what you should expect to be told about fees and commissions.
Disclosure you should receive
A licensed provider must give you certain information in a clear and concise way, free of charge. You should be told about the nature and scope of the advice, which lenders or products are covered, how the adviser and provider are paid, any conflicts of interest, and how to make a complaint, including the independent dispute resolution scheme the provider belongs to.
Read this information before you proceed. It is one of the simplest ways to compare advisers on the same basis.
What to look for when choosing a mortgage adviser
Licensing is a baseline, not a full answer. Beyond it, look for an adviser whose lender access, experience and communication style suit your situation. Comparing two or three advisers before committing is reasonable, and a good adviser will not mind you asking direct questions.
Lender access and product choice
Ask which lenders the adviser can approach and whether any major lenders sit outside their panel. A larger panel is not automatically more useful; what matters is whether the panel includes lenders that suit your circumstances. Ask how they compare pricing, fees, credit policy and loan features, and whether they will show you options they decided not to recommend.
Experience with borrowers like you
A first home buyer in a regional town, an Auckland investor and a self-employed couple building a new home face quite different questions. Ask for examples of similar situations the adviser has worked on, without expecting personal details about other clients. Relevant experience shows up in the quality of the questions they ask you.
Communication and service after settlement
Pay attention to how the adviser communicates before you become a client. Do they explain unfamiliar terms, reply when they say they will and tell you plainly when something may be difficult? Also ask what happens after settlement. A mortgage needs reviewing when fixed terms end, and ongoing support with refixing and refinancing can be as valuable as the original application.
| Question to ask | What a good answer covers |
|---|---|
| Which licensed provider do you advise under? | The provider's name, licence and FSPR registration, plus where to find their disclosure information. |
| Which lenders can you access? | The lenders on the panel, any notable exclusions and how that affects the comparison. |
| How are you paid? | Lender commission, any client fees, and clawback or cancellation conditions, all in writing. |
| How do you manage conflicts? | How the adviser keeps your interests first when commissions differ between lenders. |
| What happens after settlement? | Reviews before fixed terms end and help if your circumstances change. |
| How do I make a complaint? | The internal complaints process and the independent dispute resolution scheme. |
How mortgage advisers are paid
Many New Zealand mortgage advisers are paid a commission by the lender when a loan settles, so the advice often comes at no direct cost to the borrower. Some advisers also charge client fees, either instead of commission or in specific situations. Whatever the model, it should be explained before you agree to proceed.
Commission, fees and clawbacks
Lender commission can include an upfront payment on settlement and sometimes an ongoing trail payment. If a loan is repaid or refinanced within a set period, the lender may claw back some of the commission, and some advisers pass a fee on to the client in that situation. Ask whether any fee could apply to you and under what conditions.
Do not assume "no fee" means "no commercial relationship". The useful question is how the adviser is paid and how that arrangement is managed when comparing lenders.
Spotting advice that fits your interests
A recommendation should connect clearly to your goals, finances and comfort with risk. Be cautious if an adviser rushes you, avoids showing alternatives or presents approval as certain. A practical test is to restate the recommendation in your own words. If you cannot explain the structure, repayments and main risks, ask the adviser to go over them again.
A lower headline rate can also be outweighed by fees, restrictive repayment rules or a fixed term that clashes with plans to sell, renovate or pay down debt. The recommendation should explain what you gain and what you give up.
Lending rules a good adviser should explain
New Zealand lending is shaped by Reserve Bank settings and consumer credit law. You do not need to be an expert in either, but your adviser should explain how they apply to you in plain language.
Loan-to-value ratio (LVR) restrictions
The Reserve Bank of New Zealand limits how much high-LVR lending banks can do. Since 1 December 2025, no more than 25 percent of a bank's new owner-occupier lending can be above 80 percent LVR, and no more than 10 percent of new investor lending can be above 70 percent LVR. The Reserve Bank's LVR page sets out the current settings and exemptions, including some construction lending.
In practice, this means a deposit under 20 percent for a home, or under 30 percent for an investment property, can still be possible but lenders ration that lending and may add low-equity pricing or conditions.
Debt-to-income (DTI) restrictions
Since 1 July 2024, banks can make no more than 20 percent of new owner-occupier lending to borrowers whose total debt is more than six times their gross income, and no more than 20 percent of new investor lending above seven times income. New builds are exempt. Your adviser should be able to tell you roughly where your application sits against these limits.
Affordability checks under the CCCFA
Under the Credit Contracts and Consumer Finance Act, lenders must make reasonable inquiries to be satisfied you can repay without substantial hardship. The prescriptive affordability regulations were revoked in July 2024, but lenders still review income, expenses and existing debts. From 1 July 2026, the FMA took over from the Commerce Commission as the regulator for consumer credit.
Preparing for your first mortgage consultation
The first meeting works well when both sides can talk honestly about your position. You do not need every answer in advance, but being ready to describe what you want to buy, what you can contribute and what repayments feel manageable gives the adviser a useful starting point.
Documents to gather
- Photo identification and proof of address.
- Recent payslips, or financial statements and tax records if you are self-employed.
- Recent bank statements for your everyday and savings accounts.
- Evidence of your deposit, including KiwiSaver balances and any gifted funds.
- Details of credit cards, personal loans, student loans, hire purchase and buy now pay later accounts.
Lenders may ask for more depending on your situation, and the adviser can confirm exactly what is needed.
Explaining your deposit and goals
Be specific about where your deposit is coming from: savings, a first home buyer KiwiSaver withdrawal, a family gift or the sale of another property. Explain your wider aim too, whether that is a first home, a move, a build, refinancing or an investment. Mention anything you would rather keep in reserve after settlement, as using every dollar for the deposit can leave little room for repairs or a change in income.
Be upfront about past credit issues or missed payments. Discussing them early gives the adviser time to find a lender whose policy fits, which is far easier than dealing with a surprise late in the process.
How SHARE - The Advisory can help
SHARE - The Advisory (FSP1004072) provides mortgage advice as an authorised body under SHARE NZ Services Limited (FSP683711), a licensed financial advice provider. Our advisers compare lenders on our panel, explain the trade-offs in plain language and stay involved when your fixed terms come up for review. Our lending advice is usually paid for by the lender on settlement, and our disclosure information sets out exactly how we are paid and when a fee could apply.
Find out more about our home loan and mortgage advice, or get in touch with an adviser to talk through your situation.
Conclusion
Choosing a mortgage adviser in NZ comes down to a few checks: confirm the adviser works under a licensed provider, understand their lender access, get the payment model in writing and make sure they can explain the lending rules that apply to you. With honest information and the right questions, you can find advice that fits your home, your finances and the plans you have after settlement.
Frequently Asked Questions
Do mortgage advisers in NZ have to be licensed?
Yes. Regulated financial advice, including mortgage advice, must be given by or on behalf of a financial advice provider licensed by the FMA. Individual advisers must also be registered on the Financial Service Providers Register.
Is it free to use a mortgage adviser in NZ?
Often, because many advisers are paid a commission by the lender when the loan settles. Some charge fees in certain situations, such as if the loan is repaid early, so ask for the payment model in writing.
Is a mortgage adviser better than going direct to a bank?
Neither is automatically better. A bank advises on its own lending, while an adviser can compare lenders on their panel. Consider the complexity of your situation and the level of support you want.
How much deposit do I need to buy a home in NZ?
Many lenders look for 20 percent for an owner-occupied home, but some lend with less under the Reserve Bank's LVR speed limits or schemes such as the First Home Loan. A smaller deposit can affect pricing and conditions.
What should I bring to a mortgage adviser meeting?
Bring identification, income evidence, recent bank statements, deposit details and information about any debts. Self-employed borrowers should also bring financial statements and tax records.
Does mortgage pre-approval mean my loan is approved?
No. Pre-approval is based on the information available at the time and is usually subject to conditions such as a valuation, property checks and confirmation that your finances have not changed.