Growing reliance on mortgage experts
The Consumer Access to Mortgages 2024 report by the Finance and Mortgage Advisers Association of New Zealand revealed nearly one in five New Zealanders are planning to secure their first mortgage in the next two years, with mortgage advisers increasingly being the preferred channel.
More first-time buyers turn to mortgage advisers for expert guidance
The FAMNZ research, conducted in partnership with Agile Market Intelligence, showed that mortgage adviser usage for new loans has risen significantly. In the past year, 46% of borrowers opted for a mortgage adviser, up from 35% in prior years, signalling a shift as more borrowers seek expert guidance.
First-time home buyers, especially younger clients, are more inclined to use mortgage advisers over direct lender channels. Nearly 59% of new first-home buyers worked with advisers, highlighting the trust placed in advisers for navigating complex mortgage processes.
Michael Johnson (pictured above), director at Agile Market Intelligence, stressed the role of advisers amid high-interest rates and increased mortgage stress.
“As households face financial challenges, professional mortgage advisers are critical in helping borrowers secure competitive rates and navigate mortgage stress,” Johnson said.
Higher satisfaction and trust in adviser channel
According to the FAMNZ report, 87% of borrowers using mortgage advisers were satisfied with their experience, compared to 80% satisfaction in the proprietary channel. Adviser clients also demonstrated higher trust, with 86% expressing confidence in their mortgage adviser.
Mortgage stress affects over half of borrowers
With rising interest rates and cost-of-living pressures, nearly 60% of mortgage holders report spending over 30% of their income on repayments, indicating mortgage stress.
Moreover, 27% of stressed borrowers feel “trapped” in their current mortgage due to stringent refinancing requirements.
Saving for deposits remains a major barrier
For prospective home buyers, saving for a deposit is the primary hurdle, with 56% citing it as a major obstacle.
Concerns around affordability and navigating the application process were also noted as challenges among those looking to enter the property market.
Property investment remains a strong interest
Despite economic challenges, 18% of New Zealanders actively plan to invest in property, with another 22% open to exploring options within two years. Higher-income individuals and younger consumers are particularly drawn to property investment.
Misconceptions about adviser fees persist
Over a third of New Zealanders mistakenly believe mortgage advisers charge upfront fees, potentially deterring some from seeking advice. However, most advisers operate without direct fees to clients, with payment structures mainly reliant on lender commissions.
Positive outlook for mortgage advisers
The report noted that 44% of borrowers would consider using a mortgage adviser for future transactions, with growing familiarity and positive perceptions contributing to this trend.
This increase suggests a continued rise in adviser preference, particularly as financial pressures intensify.
Are you finding more people are now willing to use a mortgage adviser, particularly first home buyers? Share your comments below.
