Mortgages with JJIn New Zealand, a mortgage broker and a mortgage adviser usually do the same job: they compare lenders, help you structure a home loan and manage the application for you. “Mortgage broker” is the everyday name people search for. “Mortgage adviser” is the term the law recognises, because since the financial advice rules changed in 2021, anyone giving mortgage advice to everyday borrowers must hold a licence or work under a licensed Financial Advice Provider.
So when you are choosing someone to help with your mortgage, the label on their website matters far less than three things: who licenses them, which lenders they can use, and how they are paid.
I get asked about this a lot, especially by first home buyers in Orewa, Whangaparaoa and across the Hibiscus Coast who are talking to more than one person for the first time. Here is how it works.
Is a mortgage broker the same as a mortgage adviser?
For most borrowers, yes. Both terms describe a person who sits between you and the lenders, works out what you can realistically borrow, recommends a lender and loan structure, and handles the paperwork through to settlement.
The difference is mostly about language. “Broker” comes from the idea of brokering a deal between two parties, and it is still the word most people type into Google. “Adviser” reflects what the job actually involves under New Zealand law: giving financial advice, with the duties that come with it.
You will see both words used, sometimes on the same website. What you should check is not the title but the licence behind it.
Why does the law use “mortgage adviser”?
New Zealand’s financial advice regime changed in March 2021. Under the updated Financial Markets Conduct Act 2013, anyone who gives financial advice to retail clients, which includes advice about home loans, must either hold a Financial Advice Provider (FAP) licence from the Financial Markets Authority or give that advice on behalf of a licensed FAP.
That change retired some older titles and brought mortgage advice under the same framework as other financial advice. A person giving that advice is a financial adviser in the eyes of the law, and the Code of Professional Conduct for Financial Advice Services applies to them.
In my case, I am a Mortgage Adviser and I give advice under the FAP licence of Mortgage Design Limited (FSP752291). My own registration is FSP1000031. You can look up any adviser’s registration on the Financial Service Providers Register, and I would encourage you to do that with anyone you are thinking of working with.
What does that licence actually require?
A licensed adviser has to put your interests first when giving advice. They need to have the competence, knowledge and skills for the advice they give, and they need to follow the Code’s standards on things like making sure you understand the advice.
They also have to give you clear information before you go ahead: how they are paid, any fees, any conflicts of interest, which lenders they work with, and how to make a complaint. Every licensed Financial Advice Provider must belong to an approved dispute resolution scheme, so you have somewhere independent to go if something goes wrong.
Is a mortgage adviser the same as a bank’s mortgage manager?
Not quite. A bank’s mobile mortgage manager or branch lender works for that bank and can only offer that bank’s products. They can be very helpful, but their job is to place your loan with their employer.
A mortgage adviser works across a panel of lenders. I compare more than two dozen bank and non-bank lenders, which means I can look at where your situation actually fits rather than trying to make it fit one bank’s policy.
That matters most when your situation is a little out of the ordinary. Self-employed income, a smaller deposit, a recent job change, a new build or a property type some banks are cautious about can all change which lender is the right fit.
How are mortgage advisers paid?
Most mortgage advisers in New Zealand are paid commission by the lender when your loan settles, so in most cases there is no fee to you. The commission comes from the lender’s distribution budget, not from your loan or your interest rate.
Some advisers also receive an ongoing trail commission while the loan stays with that lender. A small number charge a fee in certain situations, for example if a loan is repaid very early or if a deal is not one a lender will pay on. Whatever the arrangement, a licensed adviser has to tell you upfront, in writing.
I have written a longer guide on this: How do mortgage advisers get paid and is there a cost to the borrower in NZ?
Does commission affect which lender gets recommended?
It should not, and the law is designed to make sure it does not. Because advisers are paid by lenders, there is an obvious potential conflict, which is exactly why the duty to put your interests first exists and why advisers must disclose how they are paid.
A good question to ask any adviser is why they recommended this lender over the others. They should be able to give you a clear answer based on your situation, not theirs.
What should you ask before choosing a mortgage adviser?
Whatever someone calls themselves, these questions will tell you most of what you need to know:
- Who holds your licence? Ask for the name and FSP number of the Financial Advice Provider, then check it on the register.
- Which lenders can you place my loan with? Some advisers have access to a wide panel; others work through an aggregator or franchise with a narrower one.
- How are you paid, and are there any fees? You should get this in writing before any work starts.
- What happens after settlement? Ask whether they review your loan when your fixed terms come up, or whether you are on your own once it settles.
- How do I make a complaint? A licensed adviser will be able to tell you their internal process and their dispute resolution scheme straight away.
Are there downsides to using a mortgage adviser?
There can be, and it is worth being clear-eyed about them. Not every adviser can place loans with every lender, so a narrow panel can mean a narrow set of options. Commission-based pay creates a potential conflict that you should understand rather than ignore. And an adviser cannot change a lender’s credit policy; if no lender will approve a loan on your current numbers, a good adviser will tell you that and help you plan the path to a yes.
For most borrowers, the upside is significant: someone who knows how different lenders assess income, deposits and property types, who structures the loan properly, and who manages the process so it does not stall. But the value depends on the adviser, which is why the questions above matter.
Do I need a mortgage adviser if I am buying on the Hibiscus Coast?
You do not need one; plenty of people go direct to their bank. But the Hibiscus Coast has a mix of property that makes lender choice matter: established family homes, beachside sections, lifestyle blocks towards Rodney, and newer subdivisions in places like Millwater and around Gulf Harbour.
Lenders treat those differently. New builds, for example, are treated differently under the Reserve Bank’s loan-to-value ratio (LVR) rules, and some lenders have more appetite for them than others. First home buyers often combine KiwiSaver, savings and gifted funds, and some may be eligible for the Kainga Ora First Home Loan. Getting the right lender for that combination is a big part of what I do.
If you are on the Whangaparaoa Peninsula, I have put together a page answering the questions I hear most from locals: Mortgage adviser for the Whangaparaoa Peninsula.
Key takeaways
- In New Zealand, “mortgage broker” and “mortgage adviser” usually describe the same job.
- “Mortgage adviser” is the legal term: anyone giving mortgage advice must be licensed or work under a licensed Financial Advice Provider.
- Licensed advisers must put your interests first and disclose how they are paid, and their provider must belong to a dispute resolution scheme.
- A bank’s mortgage manager can only offer that bank’s products; a mortgage adviser compares a panel of lenders.
- Most advisers are paid by the lender, so in most cases there is no fee to you, but always ask.
- Check any adviser’s registration on the Financial Service Providers Register before you go ahead.
Frequently asked questions
Is it better to use a mortgage broker or go directly to a bank?
It depends on your situation. Going direct can work well if your income, deposit and property are straightforward and you are happy with your bank’s offer. An adviser adds the most value when you want to compare lenders, your situation is less standard, or you want someone to manage the process for you.
How do I check if a mortgage adviser is licensed in NZ?
Search their name or their Financial Advice Provider on the Financial Service Providers Register, which is free and public. The register shows whether the provider holds a licence from the Financial Markets Authority. A licensed adviser will happily give you their FSP number if you ask.
Do mortgage advisers have access to every lender?
Not always. Panels vary between advisers and between aggregator groups. Ask which lenders an adviser can use before you start.
Can a mortgage adviser get me a better interest rate than my bank?
Nobody can promise a better rate. What an adviser can do is compare offers across several lenders, present your application in the way each lender assesses it, and look at the structure of the loan as well as the rate. Sometimes the bank you already use turns out to be the best fit, and that is a fine outcome too.
Is a mortgage adviser the same as a financial adviser?
A mortgage adviser is a type of financial adviser. Under New Zealand law, advice about home loans is financial advice, so mortgage advisers work under the same licensing framework as other financial advisers, usually specialising in lending rather than investments or insurance.
If you are working through this and want a no-cost conversation about your own situation, get in touch. I am based in Orewa and work with clients across the Hibiscus Coast, Auckland and New Zealand.
JJ van der Westhuizen (FSP1000031) is a Mortgage Adviser operating under the FAP licence of Mortgage Design Limited (FSP752291). This article is general information only and does not constitute personalised financial advice.