Key Takeaways
A self-employed mortgage broker in NZ helps business owners, contractors and company directors present their income in a way lenders can assess, then matches the application to lenders whose policies fit. This guide covers what a good broker does, how to check they are licensed, how they are paid, and the questions to ask before you hand over your accounts.
- Lenders treat self-employed income differently, so lender choice matters more than for a salaried borrower.
- Mortgage advisers must be licensed by the FMA or work under a licensed provider, and must follow the Code of Professional Conduct.
- Most brokers are paid commission by the lender, and they must tell you how they are paid before giving advice.
- A good broker explains the Reserve Bank's LVR and DTI rules and the lender's affordability checks in plain language.
- No broker can promise approval: the lender always makes the final decision.
Why self-employed borrowers use a mortgage broker in NZ
If you earn wages, a lender can confirm your income from payslips and an employment agreement. If you run a business, your income might arrive as drawings, shareholder salary, dividends, contract payments or trust distributions, and each lender has its own way of counting it. That extra interpretation is where a broker earns their keep.
Business income needs interpretation
Your accounts are prepared for tax, not for a mortgage application. Legitimate deductions reduce taxable profit, a one-off expense can make a good year look weak, and retained profits in a company are not automatically treated as personal income. A broker who works with self-employed clients regularly knows how to explain these figures so a lender sees the real position.
Lender policy differs more than most people expect
Lenders differ on how much trading history they want, whether they will use the latest year or an average of two, how they treat income that has recently jumped, and how comfortable they are with companies, trusts and contractors. Sending an application to a lender whose policy does not fit can lead to a decline that wastes weeks. A broker's main value is choosing the right lender first.
What a broker cannot do
A broker cannot override a lender's credit policy or the lending rules that apply to every bank. Under the Credit Contracts and Consumer Finance Act (CCCFA), lenders must make reasonable inquiries to be satisfied you can repay without substantial hardship, and the Reserve Bank sets limits on high-LVR and high-DTI lending. Be wary of anyone who suggests they can work around these rules.
What a good self-employed mortgage broker does for you
The work starts well before an application is lodged. A good broker spends time understanding your business, your household budget and your plans, then tells you plainly what lenders are likely to see.
Reviews your accounts before a lender does
Expect your broker to read your financial statements and tax returns, ask about anything unusual, and point out gaps such as overdue accounts or mixed personal and business spending. They should tell you which year or years a lender is likely to rely on and what that means for your borrowing range. If something needs your accountant's input, a good broker will say so rather than guess.
Matches your business structure to lender policy
Sole traders, partners, company shareholders, contractors and trust beneficiaries are all assessed differently. A broker should explain how your structure is likely to be treated and which lenders are comfortable with it. If you are buying your first home as a business owner, our guide to buying a first home when you are self-employed covers the deposit and timing questions that come up most.
Presents the application and manages conditions
Once a lender is chosen, the broker prepares a clear summary of your income, explains any movements in profit, and submits the supporting documents in an organised way. When the lender asks questions or issues conditional approval, the broker should tell you exactly what is outstanding and by when. For a full list of the paperwork involved, see our guide on how to qualify and apply for a self-employed home loan.
How to check a mortgage adviser is licensed and accountable
Mortgage advice in New Zealand is regulated financial advice. The current regime began on 15 March 2021 and, since 16 March 2023, anyone giving that advice must hold a financial advice provider licence from the Financial Markets Authority (FMA) or work for a business that holds one.
Licensing and the Financial Service Providers Register
You can search the Financial Service Providers Register (FSPR) to confirm a provider is registered and licensed. Ask which licensed provider the adviser works under and check the name matches. The FMA's guide to getting financial advice explains what licensed advisers must do.
The Code of Professional Conduct
Licensed advisers must follow the Code of Professional Conduct for Financial Advice Services. The code requires them to treat clients fairly, act with integrity, give suitable advice, and have the competence and knowledge to advise on the products they recommend. The FMA is clear that advisers must put your interests first, including when they receive commission.
Disclosure and dispute resolution
Before giving advice, an adviser must give you information about their services, how they are paid, any conflicts of interest, and how to complain. Licensed providers must belong to an approved dispute resolution scheme, so you have somewhere independent to go if a complaint cannot be resolved directly.
How mortgage brokers are paid in New Zealand
Understanding how your broker is paid helps you judge their recommendations. Ask for the details in writing before you commit.
Lender commission
Most mortgage brokers are paid commission by the lender when a loan settles, and some receive ongoing trail commission. This is why many brokers do not charge borrowers directly. Commission is not a problem in itself, but the adviser must disclose the arrangement and must not let it override what suits you.
Client fees and early repayment
Some advisers charge a fee in specific situations, for example if you withdraw after approval or refinance within a set period and the lender claws back their commission. These terms must be explained before you proceed. Ask what the period is, how any fee is calculated, and whether it reduces over time.
Total cost still matters more than the broker fee
A broker who charges nothing is not automatically the cheaper option if the loan they recommend costs more over time. Compare the full picture: the lender's fees, the loan structure, any cashback conditions and the flexibility to make extra repayments.
Questions to ask a self-employed mortgage broker
A first meeting should feel like a two-way assessment. These questions help you work out whether a broker understands self-employed lending and will be straight with you.
| Question to ask | Why it matters | What a clear answer includes |
|---|---|---|
| How often do you work with self-employed clients? | Experience with business income reduces avoidable declines | Examples of structures they deal with, such as companies, trusts or contractors |
| Which lenders do you work with? | A wider panel gives more policy options | The range of banks and non-bank lenders they can approach |
| How will lenders likely assess my income? | Shows whether they have read your accounts properly | Which year or years a lender may use, and why |
| How are you paid, and could I ever pay a fee? | Commission and clawback terms affect you later | Written disclosure of commission and any client fee conditions |
| What could stop this application being approved? | Tests honesty about risk | Specific issues such as declining profit, debts or deposit source |
Red flags to watch for
- Promising approval or a borrowing figure before seeing your accounts.
- Suggesting you leave out debts, tax arrears or business loans you have signed for as guarantor.
- Pushing you towards the maximum loan without looking at your cash flow.
- Avoiding questions about commission, fees or clawback periods.
- Being unable to name the licensed provider they work under.
Broker or bank direct?
Going straight to your own bank can work when your income is simple and your bank's policy suits it. When income is complex, a broker's ability to compare several lenders' policies is usually the deciding factor. Our comparison of using a mortgage adviser versus going direct to a bank sets out the trade-offs.
Lending rules your broker should explain
Some limits apply to every bank, whichever broker you use. A good adviser explains how they affect your application rather than leaving you to discover them at the decline stage.
Loan-to-value ratio (LVR) restrictions
The Reserve Bank limits how much high-LVR lending banks can do. Since 1 December 2025, no more than 25% of a bank's new owner-occupier lending can be to borrowers with less than a 20% deposit, and no more than 10% of new investor lending can be to borrowers with less than a 30% deposit. Low-deposit lending is still possible, but it is rationed and lenders may be stricter about it. Details are on the Reserve Bank's LVR page.
Debt-to-income (DTI) restrictions
Since 1 July 2024, banks can make only 20% of new owner-occupier lending to borrowers whose total debt is more than six times their gross annual income, and only 20% of new investor lending above seven times. Banks generally assess self-employed income on historical earnings, so your filed accounts matter. New builds and some other loan types are exempt.
Affordability checks under the CCCFA
Lenders must make reasonable inquiries into your income and expenses before lending. The prescriptive affordability regulations were revoked on 31 July 2024, which gives lenders more flexibility in how they check, but the obligation to lend responsibly remains. Since 1 July 2026 the FMA has been the regulator for consumer credit, taking over from the Commerce Commission.
How to prepare before you meet a broker
You will get more useful advice from a first meeting if you bring the right information. You do not need everything, but the more complete the picture, the more accurate the guidance.
- Your last two years of financial statements and tax returns, plus recent management accounts if the year has moved on.
- A summary of how you pay yourself: salary, drawings, dividends or distributions.
- Recent personal and business bank statements.
- Details of every debt, including business loans, vehicle finance, credit card limits and any business debt you have signed for as guarantor.
- Evidence of your deposit and where it came from.
Be upfront about anything unusual, such as a lost contract, a tax arrangement with Inland Revenue or a recent restructure. A broker can only plan around problems they know about.
How SHARE - The Advisory can help
We work with business owners, contractors and company directors on home loans, refinancing and investment lending. We review your accounts, explain how lenders are likely to see them, and compare lender policies before an application goes in. Find out more about our self-employed lending advice or get in touch with an adviser.
Conclusion
Choosing a self-employed mortgage broker is about more than finding someone with lender access. Look for a licensed adviser who understands business income, explains how they are paid, and is honest about what might hold your application back.
Prepare your accounts early, ask direct questions, and treat any borrowing figure as an estimate until the lender confirms it. The right adviser makes the decision clearer, not just faster.
Frequently Asked Questions
Do I need a mortgage broker if I am self-employed in NZ?
You do not have to use one, but a broker can help when your income comes through a company, trust or contracts, because lenders count those differently. If your income is simple and your own bank's policy suits it, applying direct may be enough.
How much does a mortgage broker cost in New Zealand?
Most brokers are paid commission by the lender, so many borrowers pay no direct fee. Some advisers charge a fee in set situations, such as refinancing within a clawback period, and they must disclose this before giving advice.
How do I check if a mortgage adviser is licensed?
Search the Financial Service Providers Register for the adviser's business and confirm they hold, or work under, a financial advice provider licence issued by the FMA. You can also ask for their disclosure information, which must name the licensed provider.
Can a broker get me a loan the bank declined?
Sometimes, if a different lender's policy suits your income or structure better. A broker cannot get around the CCCFA, LVR or DTI rules, so a decline caused by affordability or deposit may need a different plan rather than a different lender.
How many years of accounts do lenders want from self-employed borrowers?
Many lenders ask for two years of financial statements and tax returns, but policies vary. Some will consider a shorter trading history with supporting evidence, such as contracts or experience in the same industry.