Should I Use a Mortgage Adviser or Go Direct to the Bank?

If you’re a first home buyer in New Zealand, one of the early decisions you’ll face is whether to apply for your mortgage directly through a bank or work with a mortgage adviser. Both paths can lead you to the same result — a mortgage — but how you get there and what you end up with can differ significantly.

Let’s take a closer look at the pros and cons of each approach so you can decide what’s best for your situation.

What is a Mortgage Adviser (or Broker)?

A mortgage adviser is a licensed professional who acts as a go-between for you and multiple lenders. Rather than representing one bank, they work for you and explore a range of loan options from various providers. Their service is usually free to the borrower because they are paid by the lender when your loan settles.

What Does Going Direct to a Bank Mean?

Going direct means working with a bank’s home loan specialist or mobile mortgage manager to apply for a loan. You’ll work exclusively with that bank and only have access to their products, rates, and policies.

Pros of Using a Mortgage Adviser

1. Access to Multiple Lenders

Advisers work with a panel of lenders, including major banks and non-bank providers. This means they can compare a range of options to find a mortgage that suits your specific situation.

2. One Application, Multiple Options

Rather than filling out multiple applications, a mortgage adviser can use one application to approach multiple lenders.

3. Tailored Advice

A mortgage adviser looks at your full financial picture and goals, offering tailored advice on structuring your home loan, using KiwiSaver, or applying for low deposit options like the First Home Loan.

4. Support with Complex Scenarios

If you’re self-employed, have a non-standard income, or are looking at a unique property type, a mortgage adviser can identify lenders more likely to approve your application.

5. Negotiating Power

Advisers often know how to negotiate rates and fee waivers across lenders. While banks may have set offers, an adviser can leverage competition to get you a better deal.

Pros of Going Direct to a Bank

1. Established Relationship

If you’ve been with a bank for many years, you may feel comfortable dealing with someone you trust and have a relationship with.

2. Package Deals

Banks sometimes offer package deals on other products (credit cards, insurance, personal loans) that may be convenient for customers who like to keep everything under one roof.

3. Speed

Going direct may be slightly faster if you already know what you want and have all your documents ready.

What Are the Drawbacks?

Using a Mortgage Adviser:

• Some banks (e.g., certain online-only or niche lenders) may not work with advisers, so you may not see every option on the market.

• Some less experienced advisers may not be as thorough — check their qualifications, reviews, and if they are Financial Service Providers Registered (FSPR)

Going Direct to a Bank:

• You’ll only see that one bank’s lending criteria, rates, and products.

• You’ll need to do the comparison shopping and negotiation yourself.

• If the bank declines you, you may have to start again with another lender.

So Which Option is Best for You?

Use a mortgage adviser if:

• You’re a first home buyer and want extra support through the process

• You want to compare multiple loan offers with less hassle

• Your financial situation is complex or outside the box

• You want someone to help you structure your loan correctly

Go directly to a bank if:

• You’ve done your research and know which bank product you want

• You already have an established relationship with your bank

• You prefer to manage the application process yourself

Choosing the Right Path for Your Home Loan Journey

In most cases, especially for first home buyers, a mortgage adviser offers a more flexible, informative, and supportive experience — at no direct cost to you. But if you're confident, have a simple financial profile, and trust your bank, going direct can still work well.

Whatever you choose, the key is to be informed, ask questions, and don’t settle for the first offer that comes your way. The right mortgage structure can save you thousands of dollars over the life of your loan.

DISCLAIMER: This article is for informational purposes only and does not constitute financial advice. Always speak to a registered mortgage adviser or your bank before making lending decisions.