Why More Kiwis are Opting for Mortgage Advisers for their First Home Loans

Securing the perfect home can be an exciting yet daunting experience. Finding the right home loan to finance your first home can be equally challenging. In New Zealand, more Kiwis are seeking the expertise of mortgage advisers for their first home loans.

Understanding the Role of a Mortgage Adviser

A mortgage adviser provides a crucial service by helping you navigate the mortgage market and secure a suitable home loan that aligns with your financial standing and preferences. This includes evaluating your financial health, exploring the wide array of mortgage products available and providing customised advice to steer your decision-making process. This means a mortgage adviser not only acts as a conduit between you and the banks but also guides you throughout the process to ensure it is as seamless and stress-free as possible.

mortgage advisers first home loans

The Rise in the Use of Mortgage Advisers

The number of Kiwis using mortgage brokers is increasing year on year. One of the key contributors to this development is the complexity of the New Zealand housing market. There is an array of lenders offering a wide range of mortgage products, each with unique terms and conditions, which can be bewildering for first-time homebuyers. Navigating through this landscape can be simplified with the aid of a mortgage adviser. They provide detailed, personalised advice based on each client’s individual requirements and financial situation. With their established connections within the industry, they also have the potential to negotiate more favourable loan terms, such as interest rates and repayment schedules. As a result, more Kiwis are turning to these professionals to ensure they secure the best home loan option available to them.

What the NZ Banks Say

Recent statistics from the banks back this up. The Bank of New Zealand confirmed the adviser channel accounted for 34.8% of BNZ home loans compared to 30.7% of the previous financial year. BNZ general manager of home lending, Adam Ward said they welcome the “competition and choice” that mortgage brokers can bring.

As part of their FY23 results, ANZ confirmed the proportion of home loans through the adviser channel was 60%, up from 56% for FY22. The managing director of personal banking for ANZ New Zealand, Ben Kelleher said that the bank continued to value the adviser channel. “Our relationship with our broker network is one we value; they provide a good service for customers who prefer to use the services of a mortgage broker.”

In the six months to September 30, 2023, Kiwibank confirmed that the percentage of new home loans (by value) originated from mortgage advisors was 58%

For Westpac, adviser-introduced home loans represented 51.9% of Westpac NZ’s total portfolio (as at September 30), up from 50.1% the previous 12 months.

Get in Touch with our Team

The importance of mortgage advisers in guiding Kiwis through this journey is only set to increase. Here at Rapson, our service goes beyond mere advice; we offer bespoke guidance, to ensure the most beneficial loan conditions through negotiation, and enable our clients to make well-informed decisions. Please get in touch with the team at Rapson to discuss your journey to homeownership.