How to become a mortgage broker in New Zealand

Becoming a mortgage broker in New Zealand can be a great career choice for those interested in real estate and mortgages. Mortgage brokers help their clients find the best home loans to buy property. Their main function is to act as intermediaries between potential borrowers and mortgage lenders. 

If you're considering this career, it’s important to understand the responsibilities and requirements involved. Mortgage brokers assess clients' financial situations and guide them through the mortgage process—from application to closing. As for the requirements, it is necessary for you to get a mortgage broker licence from the appropriate regulatory institution in the country. 

Do you think that you have what it takes to thrive in this profession? 

In this article, NZ Adviser will shed light on how to become a mortgage broker in NZ. We will cover everything from the qualifications and requirements to salaries and commissions. We will also talk about the benefits and what to expect during your first month as a mortgage broker.  

What is a mortgage broker? 

A mortgage broker in New Zealand is a professional who helps people find and apply for home loans. They work with various banks and mortgage lenders to compare mortgage options and find the best deals for their clients. 

Mortgage brokers provide guidance throughout the borrowing process. They help clients understand their choices and complete the necessary paperwork. Their goal is to make securing a mortgage easier and more accessible for homebuyers. 

Understanding the role of a mortgage broker in NZ 

The role of a mortgage broker is important before, during, and after a mortgage transaction. During the initial stage when property buyers are shopping for mortgage products, you should market your brand to your prospects. 

If a client hires you as their mortgage broker, your primary task is to research the mortgage market and look for home loan services. These will come from different mortgage providers, so be sure to partner with numerous lenders. 

Your client will also turn to you for advice when choosing the most ideal option for their personal goals and financial situation. You must also assist them when structuring their loans and calculating repayments. 

Other tasks include: 

• apply (on behalf of clients) for a home loan with their chosen mortgage lender 
• submit clients’ documents and track their mortgage applications 
• help clients with their insurance policies and property valuations 

Want to learn more about what mortgage brokers can do for their clients? Watch this video: 

The best in the industry can do all these tasks with efficiency. Check out our report on The 25 Best Mortgage Brokers in New Zealand and find out how they come out on top. 

What do you need to be a mortgage broker in NZ? 

Take maths and accounting courses 

There are no specific secondary education requirements on how to become a mortgage broker in New Zealand. However, certain subjects can be very helpful. Taking courses in the following areas can provide a strong foundation for understanding finance and property markets: 

• mathematics 
• economics 
• accounting 
• business 

Having a good grasp of math is important for calculating home loan amounts and interest rates. Economics helps you understand market trends and consumer behavior. Meanwhile, developing skills in accounting is useful for managing finances and budgets. 

Taking business courses can give you insights into how businesses operate, which is valuable when working with clients and mortgage lenders. 

Read next: List of mortgage broker courses in New Zealand

Register as a financial adviser 

To become a mortgage broker in NZ, you are required to be a registered financial adviser under your employer’s or your own Financial Advice Provider (FAP) licence. Here are two steps in getting a. FAP licence: 

• register on the Financial Service Providers Register (FSPR) 
• apply to become a member of a Dispute Resolution Scheme (DRS) 

The Financial Markets Authority (FMA) regulates financial markets in the country. As such, they also provide the licensing and registration of financial service providers. 

Once you become a financial adviser, you are expected to meet the personal requirements listed in the Code of Professional Conduct for Financial Advice Services. To comply with these requirements, you should get a New Zealand Certificate in Financial Services – Financial Advice (Level 5). 

How long does it take to become a mortgage broker in NZ? 

The entire process on how to become a mortgage broker can take between 4 weeks and 6 months. This will depend on your level of experience and qualifications. Your willingness to complete all the requirements as early as possible is a determining factor. 

This period can also be dependent on the processes of specific agencies involved. For instance, rejection of your application for a mortgage broker licence can result in an unwanted delay. To avoid this, ensure that you are eligible to apply for faster approval. 

Another example is getting employed by a bank or mortgage lender, since this is part of becoming a mortgage broker in NZ. The decision on employment depends largely on the mortgage provider. So, getting rejected will also cost you more time. 

Check out this report on the best mortgage companies to work for in New Zealand 

Benefits of becoming a mortgage broker in NZ 

Becoming a mortgage broker in NZ has many rewards. Here are a few of them: 

Sense of fulfillment 

First, mortgage brokers have the chance to help people achieve their homeownership goals. Such can give one a sense of fulfillment and purpose. There are also plenty of opportunities for learning and growth. 

Financial rewards 

Another benefit is the potential for high earnings. Successful mortgage brokers can make a good income through commissions on loans—especially as they build a loyal client base. 

Work with different types of clients 

This career also offers variety as mortgage brokers work with varying personalities. Aside from clients and partner-lenders, you can meet related industry professionals like real estate agents, bank officers, and others. Connecting with these professionals and building valuable relationships is a smart move if you want to stay on top. 

Good work-life balance 

As a mortgage broker, you have the opportunity for flexible work hours. This can help you keep a good work-life balance. Such flexibility can let you set your own schedules. 

There are also mortgage brokers who work independently or run their own businesses, giving them control over their work. 

What to expect during your first month as a mortgage broker 

When you were a financial adviser, you had the option to either join a licensed FAP or create one and register it to be licensed. Once you become a mortgage broker, you also have two choices: join an existing mortgage company or create your own business. 

Onboarding as new mortgage broker 

During your first month as a mortgage broker in NZ, you can expect to go through onboarding like any other professional. 

Use the initial weeks to learn about your employer-lender's home loan options so you can answer client questions. This is also a good opportunity to explore the local mortgage market where you plan to work. 

Be sure to connect with your colleagues and other mortgage brokers. Try to be open-minded whenever they give some tips and advice.  

If you want to learn some useful tips and strategies, check out the best mortgage advisers in New Zealand. They offer solid advice that both mortgage brokers and advisers can use! 

Working with mortgage aggregator  

If you join a bank or lender, they will add you to their current agreement with a mortgage aggregator group. A mortgage aggregator facilitates the relationship between mortgage lenders and mortgage brokers. 

NZ’s largest banks and property loan providers don’t typically talk directly to their broker-representatives. Instead, they hold agreements with numerous aggregator groups. They can assign a mentor to guide you on the day-to-day activities in the workplace. 

How much does a mortgage broker make in NZ? 

The average base pay of a mortgage broker in NZ is $68,000 per year. You can also earn more through commissions, tips, and profit sharing. This extra income can go up to $90,151, making your total income as high as $157,651 annually. 

As for the lowest possible earnings, you can get a base pay of $50,000 per year. 

Seasoned mortgage brokers might enjoy the higher end of the income bracket at $85,420 per year. All figures are sourced from Glassdoor. 

Getting ready to work as a mortgage broker 

As you prepare to work as a mortgage broker in New Zealand, it’s important to familiarise yourself with the local market and the various mortgage products available. You should also keep in mind that complying with rules and regulations is a must. 

Try to work with a client-focused approach. Understanding the needs and financial situation of your clients will allow you to provide tailored advice and solutions that best suit them. 

Overall, your dedication to providing excellent service will set you apart in the NZ mortgage broking industry. Your success as a mortgage broker can make a positive impact on the lives of those looking to secure a home. 

Did you find this guide on how to become a mortgage broker in NZ helpful? Tell us what you think in the comments section below.