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

Here are the main trade-offs to check before deciding which route may suit your circumstances.

What is a Mortgage Adviser (or Broker)?

A mortgage broker is a type of financial adviser. Consumer Protection says brokers do not lend money themselves, but deal with lenders on your behalf and can shop around for you. Check that the adviser is registered, that the business they represent is licensed, and how fees or commissions work.

What Does Going Direct to a Bank Mean?

Going direct means applying through a bank or lender's home loan team. That application will be assessed against that lender's products, rates, policies and affordability checks, although you can still compare other lenders separately.

Pros of Using a Mortgage Adviser

1. Access to Multiple Lenders

Advisers work with a lender panel, which may include banks and non-bank providers. Ask which lenders are on the panel, which lenders are not, and whether the adviser can explain options that may fit your situation.

2. One Application, Multiple Options

Rather than filling out separate applications for every lender, an adviser may be able to use one fact-find or application process to approach lenders on their panel.

3. Tailored Advice

A mortgage adviser can give regulated financial advice within their scope, such as loan structure, affordability, lender criteria, KiwiSaver first-home withdrawal or low-deposit options like the Kāinga Ora First Home Loan. Confirm their scope before relying on the advice.

4. Support with Complex Scenarios

If you're self-employed, have non-standard income, or are looking at a unique property type, an adviser may help identify lender criteria that could fit your circumstances. Approval still depends on the lender's assessment and the property.

5. Negotiating Power

Advisers may help compare rates, fees, cash contributions and loan conditions across their panel. A better deal is not guaranteed, so compare the total cost and conditions before accepting an offer.

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 feel simpler if you already know the lender you want and have your documents ready.

What Are the Drawbacks?

Using a Mortgage Adviser:

Not all lenders work with advisers, so you may not see every option on the market. Check that the adviser is registered, that their business is licensed as or under a Financial Advice Provider, what products they advise on, which lenders they use, which they do not use, and how they are paid.

Going Direct to a Bank:

When going direct, that application is limited to one lender's criteria, rates and products. Consumer Protection says you are not limited to your day-to-day bank and should talk to a number of lenders about rates and offers before deciding. If one lender declines, you may need to approach another lender or adviser.

So Which Route Should You Compare?

Choosing a Path for Your Home Loan Journey

Both routes can work. A mortgage adviser may add comparison and process support, while going direct may suit buyers who have already compared lenders and are comfortable managing the application themselves. Check fees, commission, lender panel, advice scope and loan conditions either way.

Whatever route you choose, ask questions and compare the total cost of borrowing, interest rates, fees, cashback conditions, repayment flexibility and break-fee risk before accepting an offer.