Mortgage broker NZ: who pays them
A mortgage broker compares home loans for you, and the bank pays them, so a standard home loan usually costs you nothing.
Usually $0 from you
$3,300–$5,400 from the bank, on a $600,000 home loan
Bank commission of 0.55%–0.90%, from adviser disclosure statements checked 21 Oct 2026. Fees and conditions are below.
How much does a mortgage broker cost in NZ?
Usually nothing. For a standard home loan with a New Zealand bank, the bank pays the broker. A few brokers charge a fee instead of commission, or on top of it.
A broker can charge you in three situations, and has to tell you about any fee in writing before starting work. The fee to ask about is clawback. If you sell, refinance or pay off the loan in the first couple of years, the lender takes its commission back from the broker, who may pass a fee on to you.
If you might move within two years, ask about these on the first call:
- The broker's clawback period, often 27–28 months after settlement.
- ANZ's first-home cash contribution, which needs you to stay with ANZ at least three years.
- Kiwibank's cash contribution, which it claws back pro rata over four years.
| When a broker can charge you | Why | What it can cost |
|---|---|---|
| You repay or move the loan within 24–28 months | The lender takes the broker's commission back | Up to $3,000 |
| The lender pays no commission | The broker earns nothing else from the loan | A fee agreed first |
| You pull out after the broker has done the work | No loan settles, so the lender pays nothing | Up to $3,000 |
Fee caps as published by advisers, checked 21 Oct 2026. Your broker's disclosure statement sets out their own fees.
How do mortgage brokers get paid?
When your loan settles, the bank pays the broker 0.55% to 0.90% of it. That money doesn't come out of your loan, and the bank prices your rate the same way whether you use a broker or not.
BNZ and Kiwibank also pay a yearly trail of 0.15% while you stay. Some non-bank lenders pay up to 1% upfront.
Each bank pays a different amount, so ask what your broker will earn on the loan they recommend. They have to tell you. Type your loan amount to see the figure for each lender.
What your broker earns on your loan
$100,000 to $3,000,000
On $600,000, your broker earns $3,300–$5,400 from the bank.
What each lender pays a mortgage broker
| Lender | How the broker is paid | What you pay | Broker earns on $600,000 |
|---|---|---|---|
| Westpac0.90% when the loan settles | 0.90% when the loan settles | $0 | $5,400 |
| ANZ0.85% when the loan settles | 0.85% when the loan settles | $0 | $5,100 |
| ASB0.85% when the loan settles | 0.85% when the loan settles | $0 | $5,100 |
| TSB0.85% when the loan settles | 0.85% when the loan settles | $0 | $5,100 |
| BNZ0.55%, plus a yearly trail | 0.55%, plus a yearly trail | $0 | $3,300 |
| Kiwibank0.55%, plus a yearly trail | 0.55%, plus a yearly trail | $0 | $3,300 |
| Non-bank lenders0.60%–1% when the loan settles | 0.60%–1% when the loan settles | $0 | $3,600–$6,000 |
Commission from 2026 adviser disclosure statements, checked 21 Oct 2026. BNZ and Kiwibank also pay 0.15% a year while you stay.
Ask a mortgage broker to call meWhat does a mortgage broker do?
A broker finds your home loan, sets it up and keeps an eye on it after you've moved in. You deal with one person from the first call to settlement, so you don't fill in forms at every bank.
They don't lend the money. The bank makes the final call on your loan. A broker:
- Checks the banks and non-bank lenders on their panel against your deposit, income and plans.
- Gathers your payslips or accounts, bank statements, ID and KiwiSaver balance, fills in the forms and makes your case to the lender.
- Asks for a rate below the advertised one, or a cash contribution, and gets the offer in writing.
- Works out how much to fix and float, for how long, any revolving credit or offset, and how to use KiwiSaver for a first home.
- Gets in touch before each fixed rate ends to see whether you should refix or move.
Also called a mortgage adviser. Brokers work under a Financial Advice Provider licence, their own or their firm's.
How does working with a mortgage broker work?
There are seven steps from the first call to settlement, and the broker does most of the work. Most people start before they go house hunting, so they know their price range. If you're refixing, start about three months before your fixed rate ends.
- On the first call you talk about what you want, when, and your deposit, income and debts. The broker gives you their disclosure statement, which covers their licence, lenders, pay, fees and complaints.
- You send ID, recent payslips (or two years of accounts if you're self-employed), bank statements, your KiwiSaver balance and any other debts.
- The broker compares lenders, suggests a loan and how to set it up, and tells you why it suits you.
- The broker applies. The lender checks your credit and what you can afford, then gives pre-approval or says no.
- Once you've got a property under contract, the broker asks for the final rate and any cash contribution, and the lender makes its offer.
- Your lawyer settles the purchase with the lender.
- The broker checks in before each fixed rate ends.
The credit and affordability checks are required by the Credit Contracts and Consumer Finance Act 2003.
Mortgage broker or bank: which is better?
It depends how simple your loan is. If your own bank already offers the rate and setup you want, and you're happy to haggle, going direct is fine. If your situation is less tidy, or you'd like more than one bank's view, use a broker. It usually costs $0.
Bank staff can only offer their own bank's loans, while a broker can bring a second lender's offer to the table. Brokers arranged 66% of new owner-occupier home lending by value in 2023.
| Point | Going direct to a bank | Using a mortgage broker |
|---|---|---|
| Who they work for | The bank | Their own business |
| Who pays them | The bank, as its employee | The lender, at settlement |
| What you pay | $0 | Usually $0 |
| How many lenders | One | Every lender on their panel |
| Paperwork | You fill in the bank's forms | The broker does it |
| Rate haggling | You, with one bank | The broker, with a second offer |
| At refix time | The bank gets in touch | The broker reviews the loan |
| Licence | The bank's own | Theirs, or their firm's |
Bank staff include mobile managers such as Westpac Home Loan Experts. Broker share of lending from the Commerce Commission, 2024.
Ask a mortgage broker to call meIs a mortgage broker worth it?
Yes, for most people, especially if your loan isn't straightforward. You get several lenders' views for $0 on a standard home loan. A broker helps most if:
- it's your first home, with a KiwiSaver withdrawal, the Kāinga Ora First Home Loan or low-deposit lending to sort out. See first home loans.
- you're self-employed, because each bank reads accounts and a recent loss differently.
- your bank said no. Another bank or a non-bank lender may lend, though a non-bank loan usually costs more in interest.
- you own several properties and need lending spread across banks within each lender's limits.
- you're refinancing and need the new rate and cash contribution weighed against the break fee and any clawback. See refinancing.
Banks pay brokers different amounts, from 0.55% at BNZ to 0.90% at Westpac. Ask what your broker will earn on the loan they suggest, and ask to see at least three actual offers.
Three offers is the Commerce Commission's recommendation.
What can't a mortgage broker do?
A broker can't promise you a loan, because the bank makes that decision after its own checks. Nor can they bend the Reserve Bank's rules for you or use lenders outside their panel. If anyone promises approval before they've seen your details, walk away and find another broker.
A mortgage broker can't:
- Approve your loan. The lender decides after its own checks.
- Lend more than the Reserve Bank allows. Its loan-to-value and debt-to-income limits apply to the bank.
- Use a lender outside their panel. No broker works with every lender, and their disclosure statement lists theirs.
- Put their commission ahead of you. The law says your interests come first.
- Advise on insurance or KiwiSaver investments without the know-how. If they don't have it, they should send you to a specialist.
- Cancel a lender's clawback. If the loan ends early, the lender takes the commission back, and the broker's terms say whether you pay a fee.
Credit Contracts and Consumer Finance Act 2003; Financial Markets Conduct Act 2013, s 431K.
How do I check a mortgage broker is licensed?
It's free and takes a few minutes, using the Financial Service Providers Register and the broker's own disclosure statement. Check on the day of your first call, because the FMA does cancel licences, most recently in March 2026.
- Search the Financial Service Providers Register for the broker's name or FSP number. The entry shows who they advise for and which complaints scheme they belong to.
- Check the same entry says their business holds a Financial Advice Provider licence, or works under someone else's.
- Read their disclosure statement. It sets out how they're paid, which lenders they use, their fees and how they handle the conflicts commission creates.
- Note their complaints scheme. If something goes wrong and the broker can't sort it out, the scheme looks at your complaint for free.
Being on the register doesn't by itself mean a broker is licensed. The FMA licenses brokers but doesn't endorse any one of them.
What should I ask a mortgage broker?
Take these to your first call and ask for the answers in writing. Push hardest on commission and offers, because those show whether the loan suits you or suits the broker.
- Which lenders do you use, and which lenders are not on your panel?
- How are you paid for this advice, and does the commission differ between lenders?
- Why do you recommend this loan, and is it the most suitable option for me?
- Can you show me at least three actual offers, including the lowest-cost one?
- What fees will I pay, and what features does the loan include?
- What information do I need to provide?
- What fees apply if I close the loan early or move to another lender?
Before you sign, ask for a written quote. It should show the loan type, amount, term, rate and every fee, including any broker fee.
Questions from the Financial Markets Authority, with the Commerce Commission's three-offer advice.
How does the Compare Loans referral work?
You fill in a short form, and one licensed mortgage broker calls you at a time you choose. Your confirmation message names the broker, and on the call they give you their disclosure statement.
After that, you deal with the broker directly. Compare Loans is a loan comparison and referral website. It doesn't lend money, isn't a mortgage broker and doesn't give financial advice, and it takes no part in the broker's advice.
What else do people ask about mortgage brokers?
Is a mortgage broker the same as a mortgage adviser?
Yes, they're the same job. The law calls both a financial adviser, and both have to work under a licence.
An FMA Financial Advice Provider licence has been required since 15 March 2021, with full licences from 16 March 2023: the broker's own or their firm's.
What is the downside of using a mortgage broker?
The main one is that banks pay brokers different amounts, which can pull a broker towards one bank. Their panel might also leave out a lender, and you could pay a clawback fee if you move the loan within 24–28 months. Protect yourself by asking what they'll earn on your loan, and to see at least three actual offers.
Commission 0.55% at BNZ and Kiwibank, 0.90% at Westpac, checked 21 Oct 2026. Three offers is the Commerce Commission's recommendation.
Do mortgage brokers get better rates than banks?
Not automatically. Brokers and bank staff start from the same advertised rates, and either can ask for a discount. What a broker adds is an offer from a second lender, which gives the first one a reason to sharpen up. No broker can promise you a lower rate than going direct.
Will using a mortgage broker affect my credit score?
Each application leaves a credit enquiry on your file, whoever sends it. If your broker applies to two lenders, that's two enquiries. Ask how many lenders they plan to apply to before they start.
Can a mortgage broker help if my bank said no?
Yes, often. Each bank has its own rules, so another bank may say yes. A broker can try a bank with different rules, or a non-bank lender, though those usually charge more interest and may mean a broker fee. Nobody can get around the lender's credit and affordability checks.
Do I have to use my real estate agent's mortgage broker?
No, you can choose any licensed broker. If the agent and the broker have a referral deal, it's a conflict of interest, and the broker's disclosure statement has to cover it.
Is a bank's mobile mortgage manager the same as a broker?
No. A mobile manager, like an ANZ Mobile Mortgage Manager or a Westpac Home Loan Expert, works for one bank and only offers its loans. A broker works across all the lenders on their panel.
When should I talk to a mortgage broker?
Before you start house hunting, so you can get conditional approval and know your price range. If you're refixing, talk to them about three months before your fixed rate ends. That gives them time to compare lenders and finish the paperwork if you switch.
Want a licensed mortgage broker to call you?
Answer three short questions so a licensed mortgage broker can prepare for the first call. A broker usually charges no fee for a standard home loan, and tells you in writing before any fee applies.
Compare Loans refers you to a licensed broker and is paid a referral fee by the broker. This is not a loan application. How Compare Loans makes money