Mortgage advisers vs banks in NZ: how each works and is paid

You can get a home loan by going straight to a bank or through a mortgage adviser (often called a broker). Both routes lead to the same lenders’ rules, and neither guarantees approval. The Financial Markets Authority (FMA) says “most mortgage advisers work on commission”, usually paid by the lender as a percentage of the loan, and that advisers must tell you how they are paid. Those giving financial advice “are required to be licensed by the FMA as a Financial Advice Provider” or work for a business that is. A bank deals only in its own loans, so comparing lenders is up to you. Since banks test at different rates (ANZ 6.85% to BNZ 7.10%, confirmed July 2026), the same household can get different answers: about $678,727 to $696,100 in our example. Banks decide; this is general information, not financial advice.

The two routes side by side

We list the routes alphabetically and we take no commission from either. This site is not a bank, a lender or a broker, and no bank pays us.

Neither route is better for everyone. The right choice depends on how straightforward your situation is, how much time you have, and how comfortable you are comparing lenders yourself.

What a mortgage adviser does

A mortgage adviser looks at your income, debts, deposit and goals, suggests lenders and loan structures, prepares the application and deals with the lender for you. The FMA says that “advisers should always prioritise your interests over their own when advising a loan product”, and that “not all banks and lenders are the same, your mortgage adviser can explain the pros and cons of different options”.

The FMA suggests asking an adviser directly: “Do you offer loans from a range of different lenders?” An adviser may work with several banks and non-bank lenders, but not every lender in the market, so ask which ones.

Advisers can be most useful where lender policies differ: self-employed income (see our self-employed guide), low deposits, rental income, or a complex mix of debts. Banks do not publish their living-cost benchmarks or every policy, and an adviser who works with several lenders sees how each treats similar cases.

How advisers are paid: commission and clawback

From the FMA’s mortgage advice page (last updated 14 May 2026):

• Commission. “Most mortgage advisers work on commission.” They “usually receive a payment from the lender as a percentage of the total loan amount”, when you draw down the loan.
• Ongoing commission. “They may also receive an ongoing periodic commission while you continue to hold the loan.”
• Different lenders pay differently. “Commissions can vary across lenders; some lenders pay higher commissions than others.”
• Clawback. If your loan ends or moves to another lender within a certain period, the lender may recoup some or all of the commission it paid the adviser, and “your adviser may then charge you a fee, where their commission has been ‘clawed back’”. The adviser “must tell you about this up front”.
• Disclosure. “Advisers are required to disclose to you how they are paid and how much you’ll need to pay”, and in what circumstances a fee arises.
• Cash back is separate. The FMA notes that “cash back payments and commission ‘clawback payments’ are different”.

The FMA does not publish a standard commission rate, and we do not quote one. Ask your adviser for their disclosure, which must say how they are paid, and read the clawback terms before you sign. If you might sell, refinance or switch within the first few years, the clawback terms matter.

Licensing and your protections

Financial advice to retail clients is regulated. From the FMA:

• “Those providing financial advice are required to be licensed by the FMA as a Financial Advice Provider.” Advisers “must have a licence issued by the FMA or be working for an approved business that has one” (Getting advice, last updated 15 March 2021).
• Anyone who provides advice to retail clients must “either hold a Financial Advice Provider licence” or operate under someone else’s, and to use the term Financial Advice Provider an individual or entity “must be registered on the Financial Service Providers Register” (Financial Advice Provider page, last updated 1 September 2026).
• Anyone giving advice to retail clients is subject to the Code of Professional Conduct for Financial Advice Services, which sets standards of “conduct, client care, competence, knowledge, and skill”.
• “All licensed financial advice providers must be part of an approved Dispute Resolution Scheme.” If you cannot resolve a complaint with the provider, it goes to that independent scheme.

You can check a provider on the Financial Service Providers Register before you go ahead. The same consumer credit law applies to the lender whichever route you take; the FMA took over as regulator of the Credit Contracts and Consumer Finance Act from 1 July 2026.

Worked example: the same household at five banks

Comparing lenders matters because banks test at different rates. Here is one household through our engine at each bank’s published test rate (confirmed July 2026, still shown on 10 November 2026). A couple earns $130,000 ($65,000 each), takes home about $8,311 a month, spends $3,200 a month on living costs, has a $25,000 car loan at $550 a month and $10,000 of card limits, and a $200,000 deposit.

On test rates alone the spread is about $17,400. Real differences can be larger or smaller, because each bank also uses its own living-cost benchmarks and policies, which it does not publish. Our living-cost figure here is the couple’s own, above our floor of $2,400 for two adults (our assumption, not a bank figure). A higher borrowing figure is not automatically better: the right loan is one you can repay comfortably. You can see every bank’s test rate on our test rates page and in our bank test rates guide.

Questions to ask either way

If you use an adviser: Which lenders do you work with? How are you paid, and is there ongoing commission? Is there any fee to me, and what are the clawback terms? Are you licensed, or working under a licensed Financial Advice Provider?

If you go direct to a bank: What test rate and living-cost approach will you apply? What will the low-deposit charges be, if any? How long does your pre-approval last? Would a different structure change what you can borrow?

Either way, know your own numbers first. Our guide to how banks assess your application explains the checks, and first home buyers can see where this step fits in first home buyer steps.

Rates as at 10 November 2026; test rates confirmed July 2026.

Questions people ask

How are mortgage advisers paid in NZ?

The FMA says most work on commission, usually paid by the lender as a percentage of the loan when it is drawn down, and some receive ongoing commission while you hold the loan. They must disclose how they are paid.

What is a commission clawback?

If your loan ends or moves to another lender within a certain period, the lender may recoup some or all of the adviser’s commission. The FMA says the adviser may then charge you a fee, and must tell you about this up front.

Do mortgage advisers need to be licensed?

Yes. The FMA says those providing financial advice to retail clients must hold a Financial Advice Provider licence or work under one, follow the Code of Professional Conduct, and belong to an approved dispute resolution scheme.

Is it better to use an adviser or go to my bank?

Neither is better for everyone. An adviser can compare several lenders; going direct means dealing with one bank that already knows you. Either way, the lender makes the decision.