Kiwis uninformed about mortgage services
A recent report by Agile Market Intelligence, in partnership with the Finance and Mortgage Advisers Association of New Zealand (FAMNZ), has revealed a significant gap in awareness among New Zealanders about the role and benefits of mortgage advisers.
The Consumer Access to Mortgages 2024 report found that only 28% of respondents were highly familiar with the services offered by mortgage advisers, while a concerning 22% were “not familiar at all.” This figure rises to 34% among non-mortgage holders.
Industry leaders urge change
Peter White (pictured above), FAMNZ’s managing director, expressed his concern over the findings, stating that the results are both “alarming and embarrassing.”
White stressed that the mortgage advisory industry must change its approach to ensure that more people understand the advantages of working with a mortgage adviser.
“It’s clear that we must do things differently so that more New Zealanders understand the advantages we bring,” he said.
White urged the industry to step out of complacency, work together, and improve communications and marketing efforts.
Misconceptions about adviser fees
A troubling aspect of the FAMNZ research is the widespread misunderstanding about the cost of mortgage advice. 36% of Kiwis believe there is a fee to access a mortgage adviser, while another 36% are unsure.
In reality, the majority of mortgage advisers do not charge any fees.
Moreover, 75% of respondents were either unsure or incorrectly believed there was an extra cost when using an adviser, reinforcing the need for better industry education.
FAMNZ’ call for unity
White highlighted the importance of a unified approach led by a strong professional body.
“While we had no idea these results would be so alarming, it confirms that we made the right call to establish FAMNZ,” he said.
FAMNZ, which recently launched its Adviser Elevate series, aims to increase market awareness, professionalism, and education in the sector.
White’s message to advisers is clear: “It’s time to stop settling for second best. Join us and let’s build together.”
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