New shoots emerge as new advisers enter the market.
Calls for higher qualifications for mortgage advisers entering the industry - and an exclusive new marketplace launches for buying and selling adviser books.
Former FAMNZ boss gets a new role, and a BDM steps up at Go Lend.
What Canterbury buyers want; Developers owe IRD big time, Greenlight for sheds and the role of AI.
COMMENTARY
Housing market in an unusually well-balanced phase.
How advisers should be using AI-driven CRMs, the biggest shift in marketing since the internet itself.
What is the FMA focusing on in terms of conduct, and what can you do to avoid losing your licence?
recently.
FROM LEFT: MICHELLE ISEMONGER, TOM WADE, ARCHIE MIDDLETON, AMY BRYANT
Here at TMM we have been writing about the mortgage advice sector for nearly three decades – going all the way back to last century.
What’s really interesting is we have entered a phase unlike any we have seen before – a real changing of the guard where older advisers have hung up their single and new advisers have come on board.
Without putting the old guard down, it is a good thing we have fresh new blood. New ideas, new ways of doing things and the future leaders.
Our work around adviser numbers suggests that even though there are comings and goings the overall number of mortgage advisers has stayed the same – if not grown slightly.
The trouble though is there is not good data to understand what is going on. We have been doing some work but it’s not precise. We think the Financial Markets Authority’s second annual regulatory returns will shed some valuable light on the changes.
NEW SHOOTS
Head
Design Michelle Veysey
In this issue we have caught up with four newish advisers to get their take on things. It’s interesting that the biggest problem plaguing mortgage advisers has been around for years and shows little sign of going away – bank turnaround times and channel conflict.
This is a massive blight on the banks in New Zealand. They make enough fricking money and should invest a small fraction of it back into fixing the problem.
We do understand some of the smaller banks have made advances in technology to speed up things.
The other interesting observation around this body of work has been how hard it is to quantify new-toindustry advisers. It seems logical this is a metric aggregation groups should be on top of. Why? These are the advisers who, arguably, need to have a greater level of oversight to ensure they are meeting all the regulatory requirements.
BETTER BUSINESS CONFERENCE
We have had an unfortunate experience or two trying to put together the TMM Better Business conference. We still are hoping to have an event in early November.
You can stay up to date on this by checking tmmonline.nz
We will also provide some assurance to advisers that if you register and something unexpected happens we will go out of our way to make sure there is some form of compensation.
Any questions please contact me by email at philip@tmmonline.nz
Philip Macalister Publisher
From Programme to Practice: Making Transformation Part of Who We Are
BY TRACEY WHITE, GM, TECHNOLOGY AND OPERATIONS.
In today’s fast-moving financial landscape, embracing transformation isn’t optional—it’s essential. For advisers, the benefits are clear: more time with clients, less time on admin, and smarter tools that support better conversations and outcomes. But the consequences of standing still are just as real. Without transformation, we risk falling behind: spending more time on manual tasks, missing opportunities to personalise advice, and struggling to meet rising client expectations.
Recently, I was asked how AI might reshape financial advice. My view? AI isn’t here to replace the human connection that defines our work—it’s here to enhance it. The opportunity is ours to seize: to elevate how we work, streamline complexity, and continue delivering real value to clients through meaningful, human conversations.
Over the past few years, I’ve had the privilege of leading NZHL’s transformation journey. It’s been a bold and ambitious chapter, filled with challenge, growth, and impact. We launched this journey during a time of significant external change. Advisers were investing in their qualifications, adapting to new regulatory frameworks, and supporting clients
ABOUT NZHL GROUP
through global uncertainty and local economic shifts. Despite the pressure, our people leaned in. Together, we delivered long-term change that empowers advisers to better support Kiwis with confidence, care, and clarity.
Our Transformation Programme is done, but the mission hasn’t changed. Peopleled, digitally enabled transformation remains at the heart of what we do. In an increasingly AI-enabled world, adaptability matters more than ever. Not sure where to begin with AI? Start small, but do start. Get some advice on how to use AI safely and keep the human in the loop, as they say. You’ll be amazed at how you’ll find ways for AI to supercharge your day. This next chapter is about momentum. It’s about scaling what works and creating the conditions for advisers to do what they do best: have valuable conversations without being bogged down by box-ticking and paperwork. AI and automation will play a key role in removing friction, freeing up time, and enabling advisers to focus on what matters most—building relationships and guiding clients toward financial freedom.
Transformation isn’t a one-off initiative. It’s not a project with a start and end date.
It’s an attitude. A way of working that’s now embedded in the DNA of how we operate every day. It’s no longer something we do; it’s who we are. Fast, Focused, and Flexible.
What has been most rewarding is seeing this shift take root, not just in systems and processes, but in the culture. Transformation has moved from strategy to a shared mindset. It’s something our people live and breathe.
I saw this firsthand at our recent NZHL National Conference. There was a visible shift from “managed” change to “embraced” change. When we launched beta initiatives this year, the response wasn’t hesitation, it was enthusiasm.
Advisers leaned in, asked questions, and volunteered to be part of what’s next. That’s the power of transformation when it becomes part of who we are.
At NZHL, we’re not just adapting to change, we’re leading it - building a future where technology supports human connection, where advisers are empowered, and where transformation is more than a programme—it’s a practice.
And we’re just getting started. Why don’t you join us? ✚
NZHL is a Kiwi-owned, respected, and trusted brand - a purpose-driven (financial freedom, faster) home loan and insurance network that offers a solution to support advisers and help put Kiwis in a better financial position. Part of Kiwi Group Capital Ltd (KGC) which is 100% Government owned, NZHL Group operates with an Independent Board and local business owners nationwide.
PAUL
Better path needed for new mortgage advisers
Higher qualifications and standards are needed for advisers entering the mortgage industry, says Matthieu Olo-Whaanga of Tasman Finance Partners.
He says the NZQA New Zealand Certificate in Financial Services (Level 5) is not enough for advisers new to the industry who have little business or life experience.
"That's not to say we make it harder for people to get into the industry, but there should be more knowledge added to the qualification and perhaps a proviso that new advisers go through a two-or three-year registration process similar to valuers, or a mentoring programme," Olo-Whaanga says.
Olo-Whaanga set up Tasman Finance Partners in October after buying his client book from Float Mortgages. He completed the Level 5 certificate in two months but had significant business and
life experience, including accounting studies and working for BNZ's commercial banking arm managing $10 million-plus deals.
"People can just roll into the industry and start advising people on the biggest asset they will probably have in their lifetime once they get their Level 5 qualification," he says. "It's not to their advantage nor to their clients."
He says inexperienced advisers don't know what they don't know. "It's a fine line between putting a loan structure on paper that might look good and having
no understanding how things work in reality."
Olo-Whaanga advises newly qualified advisers to become client services managers for a couple of years to learn the industry inside out and how to deal with borrowers' emotions and questions.
He suggests adopting Australian regulation requiring a two-year mentoring directive could be considered in New Zealand to protect clients from being set up for failure.
New exclusive marketplace launched for buying and selling adviser books
Dylan Ferreira from Vega has launched Buythebook, a website-based business where New Zealand and Australian advisers can exclusively buy and sell mortgage, insurance and wealth books.
The platform wants to disrupt how financial service professionals buy, sell and scale their businesses. Ferreira expanded his business through acquiring two mortgage books and found sourcing professional services books a hit-and-miss affair, with transactions happening behind closed doors.
"If advisers want to retire or leave the industry, there isn't a standardised process," he says. "Buyers are left in the dark, often spending hundreds of thousands of dollars tied up for hours looking at manual spreadsheets."
Using his 16 years' mortgage industry knowledge, Ferreira partnered with a technology company using AI and machine learning expertise to create a purpose-built marketplace.
Site users need AML verified profiles to avoid fake books. They're notified when books become available within their search criteria and can access secure data rooms to review trail and non-trail income, client databases, settlements and claw-back liabilities.
Within 24 hours of launching, one
mortgage book was for sale, with two insurance books and another mortgage book expected.
Ferreira has arranged a funding line to help businesses and is building products to eventually fund business growth beyond just acquisitions. The platform uses machine learning to analyze transaction patterns and help the adviser industry grow.
"We already face enough headwinds from banks, AI, increasing compliance and growing competition," Ferreira says. "My goal is to ensure that when someone chooses to exit the industry, they do so with clarity and the best return possible."
Three companies hit $2 billion milestone
Tauranga-based First Mortgage Trust has cracked the $2 billion funds under management.
FMT's strongest growth has come from existing investors and borrowers sharing their positive experiences.
"Most of our new investors come to us through word of mouth, from a friend, a family member, or someone they trust," chief executive Paul Bendall says.
FMT has more than 7,000 investors and offers a retail fund, PIE fund, and a wholesale fund.
With little fanfare, except on social media, Kernel also surpassed $2 billion in funds under management.
This is remarkable growth as it celebrated the $1 billion mark in June last year. It took five years to get the first billion and just over a year to get
the second.
Milford also rolled out the $2 billion cake saying its KiwiSaver Plan now exceeds $2 billion in funds under management through its independent financial adviser channel.
"This growth has been driven by strong adviser support, long-term investment performance, and a commitment to delivering highquality service to the intermediary market," the company says.
This milestone sits within Milford's broader KiwiSaver Plan, which has grown to $11.8 billion in total FUM, with the firm expecting to surpass $12 billion in coming weeks.
Head of Wholesale Distribution Michael Robson says the achievement reflects relationships built with independent financial advisers and long-term performance through strong partnerships.
PAUL
BENDALL
Deposit bonds return
Industry veterans bring an alternative to cash deposits back to the market.
A couple of mortgage industry stalwarts are back in the market with an offering of deposit bonds for those who want to buy a residential property, but who for various reasons either can’t get finance from their banks or wish to avoid the obligations such access requires.
Such potential purchasers have sufficient assets, such as owning an existing property or properties, and other assets, which prove they’re able to finance the eventual purchase.
For whatever reason, they may prefer to purchase a bond instead of providing a cash deposit to secure their purchase of a property.
Carey Brunel, who sold his Mortgage People business in late 2017, and Kym Dalton, who has more than 45 years’ experience in financial services on both sides of the Tasman, are offering a product that hasn’t been available in the New Zealand market for more than a decade.
The pair have an arrangement with Australia-based Deposit Power to offer its product in the loical market, which is backed by insurance company, HDI Global Specialty SE, which received its licence from the Reserve Bank to
BY JENNY RUTH
operate in NZ in March 2021.
The insurance company has an AA-, or very strong, rating from Standard & Poor’s, while Deposit Power has been operating in Australia for more than 30 years.
The bond product the DepositBond business is offering provides 10% of a property’s value as a deposit for someone planning to purchase that property, who has the ability to prove they’re good for both the deposit and the purchase price of the property.
Brunel cited the example of a couple in their late 70s who wanted to buy an apartment in Auckland with a purchase price of $4 million.
That couple already owned a residential property, which they were planning to sell to finance the purchase, as well as other investments.
Their bank had turned down their application for bridging finance, essentially on the basis that they were too old and were no longer employed and so didn’t have the earnings to support such a loan, even though their assets far exceeded the amount they were seeking.
Brunel says customers in this age
bracket often face delays of several weeks to be turned down when they seek bridging finance, even when the bank knows at the outset it is not going to provide finance.
The new DepositSmart business would provide such a customer with the $400,000 deposit bond for three months at a cost of $7,500, considerably less than the estimated $12,700 that their bank would have charged, even if it had agreed to finance the transaction.
Brunel says banks are harming such customers by not telling them immediately that they don’t fit the bank’s criteria and won’t get the bridging loan they’re seeking.
Brunel says the product DepositSmart is offering won’t suit every property owner but that it can make transactions possible that the major banks refuse to finance.
DepositSmart is offering two types of bonds, one of up to six months to purchase an existing property, or one of up to 5.5 years to purchase an off-theplan apartment. ✚
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People on the move
Former FAMNZ boss joins FAP
Leigh Hodgetts, the inaugural head of FAMNZ, has left the organisationorganisation to take up a role with one of the largest financial advice providers.
In new role she is risk and compliance manager at First Capital Financial Services, a Gallagher company.
First Capital operates in wealth management, employee benefits and risk management.
Australian-based FAMNZ managing director Peter White said Hodgetts
served "as a fierce advocate for New Zealand's finance and mortgage advisers, pioneering the association's work."
The association will soon appoint a new senior team member to lead the New Zealand association.
White said since inception, the association has made significant progress despite challenges where advisers were not compelled to join a professional body.
"FAMNZ is already the recognised voice of the industry, respected across
Nisha Nazareth has been appointed business development manager lending at Go Lend.
Nazareth brings a strong background in non-bank lending, with expertise spanning both sales and credit. She has previously had roles at Norfolk Mortgage Trust, Geneva Finance and Southern Cross. Go Lend chief executive Luke Jackson says Nazareth's appointment
government, mainstream media and regulators," he said. "We have raised the public profile of our industry and brought about real changes through advocacy."
White said Hodgetts helped deliver a dedicated voice with government and regulators, successfully engaging wit key regulatory bodies such as the Commerce Commission.
Since her resignation White has been calling for it to be mandatory for advisers to belong to a professional association.
strengthens the company's ability to support a wider network of mortgage advisers and expand access to the Go Lend proposition.
Go Lend funds all loan settlements directly through its own initial funding lines, with loans sold to its retail investor base post-settlement. Since launching nine months ago, Go Lend has developed a solid and growing retail investor base. ✚
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Green light for garages and sheds
BY SALLY LINDSAY
By the end of the year landlords and homeowners will be able to put up a sleepout, small shed or garage closer to their boundary or another building without needing a consent.
The New Zealand Property Investors Federation (NZPIF) says the changes will make life easier and better for homeowners, property investors and tenants.
NZPIF PR & advocacy manager Matt Ball says the change will make it easier to add an extra bedroom, a new garage to keep cars safe, or a shed for tenants to store bikes, tools and other items.
“It will add value to an investment property and amenity for renters.
“In a market, where rents are falling and tenants are hard to find, being able to offer better amenities could make all the difference.”
Ball says offering an extra bedroom for a tenant’s teenager, or an external office or hobby space may be what sets a landlord apart from the house down the road. “We believe landlords will jump at the chance to use this rule change.”
It will also mean that investors and homeowners will be able to build a garage closer to the front boundary of their property – a sensible change in a market where space is at a premium, he says.
Cabinet has agreed to remove the minimum required distance between single storey buildings under 10 square
metres and a property boundary or other residential building (setback distance).
Cabinet has also agreed to reduce the setback distance to one metre for single storey buildings between 10 and 30 square metres.
Previously, garden sheds and other single storey detached buildings like sleepouts or garages had to be as far from a boundary or residential building as they were tall. Anything closer than that required building consent.
While the setback rules are being changed, other rules like site coverage and fire wall restrictions will still apply.
The government is aiming to have the new rules in force by late this year.
What Canterbury Buyers Want
BY SALLY LINDSAY
Recent research shows that Canterbury home buyers don’t want units they want homes.
Recent research shows that Canterbury home buyers don’t want units they want homes.
Squirrel Mortgages Christchurch managing adviser Nathan Miglani says while Christchurch has three-bedroom, two-bathroom homes in decent suburbs that can be bought for under $700,000, affordability hasn’t protected the market from oversupply – particularly townhouses.
“In recent years, we’ve seen a wave of unit developments go up across the city. Many were driven by investors chasing quick returns or small-scale builders looking for a simple build.”
He says unfortunately, the outcome has often been the same – a surplus of plain, characterless boxes with little appeal to owner-occupiers.
In Squirrel’s Christchurch office fewer than one in 10 first home buyers are seriously considering a unit.
Buyers say they associate townhouses with a lack of privacy (39%); poor design and sameness and cheap build
quality (18%).
“In short, they don’t see townhouses as family homes – they see them as compromises.”
He says when they are well designed, in great locations and show some personality, they can work – particularly for buyers who see Christchurch as a stepping stone before heading to Auckland or Australia.
But the bulk of buyers are looking for a stand-alone home, with a bit of land, a space that reflects their identity and lifestyle, a flexible third room and offstreet parking or a garage.
Investor drop-off
The residential investor sector has shrunk, with rising expenses and interest rates putting pressure on returns.
This has resulted in the value of many new-build townhouses dropping by $30,000-$100,000 depending on location and spec.
However, quality builds have held their value – proof that design, materials and market fit still matter, Miglani says.
“If there is a takeaway for developers
here – build homes, not units.
“Get to know your buyers, design for families, not just floor plans, include a garage or at least good storage.”
He says developers should prioritise quality over quantity. In a market flooded with plain copy and paste developments, homes with character will stand out – and sell.
“The Canterbury market doesn’t need more boxes. It needs thoughtful, liveable homes that feel like they belong here.”
BY SALLY LINDSAY
Construction has the biggest share of unpaid PAYE and GST from the tax years from 2018 to 2025, new IRD figures show.
Builders owe huge debts to IRD AI literacy weak
BY SALLY LINDSAY
As AI is becoming more common across the property and mortgage industries, a new survey has found New Zealanders are less trusting and positive about it than most countries.
A KPMG survey across 40,000 people in 37 countries found as well as being wary of AI, New Zealand ranks among the lowest globally on acceptance, excitement and optimism about it alongside Australia and the Netherlands.
Only 44% of New Zealanders believe the benefits of AI outweigh the risks, the lowest ranking of any country.
Companies involved in the construction industry owe $1 billion. Real estate, hiring and services was next with $533.5 million.
New Zealand businesses owe more than $1.4 billion in unpaid GST and PAYE from the 2025 tax year alone. About $66 million of this debt is from businesses and individuals who are bankrupt or in liquidation.
There is still almost $48m unpaid from 2018 – and $1.471 billion from the most recent year.
Just over $66m of the most recent debt was from businesses or individuals who were bankrupt or in liquidation.
The number of businesses being
liquidated by Inland Revenue has jumped in recent years.
Company liquidations have risen 27% year-on-year, partly due to increased enforcement activity by the IRD.
The construction sector has been hit the hardest – more than 750 building firms have gone into liquidation in the past 12 months.
The data showed IRD had written off $110.3 million of unpaid PAYE and GST in 2018, $109.1 million in 2019, $85.5 million in 2020, $94.8 million in 2021, in 2022, $99.3 million in 2023, $56 milion in 2024 and $7.6 million from the last tax year.
New Zealand trails behind other countries in realising the benefits of AI – 54% vs 73% globally report experiencing benefits.
In workplaces across the country, 61% of employees say their organisation uses AI, while 57% of those workers say they use it intentionally.
Just over 30% feel they couldn’t complete their work without the help of AI, 37% relied on AI to do a task rather than learning how to do it and 43% were worried about being left behind if they didn’t use AI.
The survey showed there is a level of complacency among employees using AI, with 46% making mistakes in their work due to AI, 51% relying on
it without evaluating its accuracy and 43% presenting AI generated content as their own work.
About 43% claim AI has increased their efficiency, quality of work and innovation and 31% report increased revenue generating activity. However, 15% say it has increased workload stress and pressure.
KPMG says the surge in adoption, coupled with low AI literacy and weak governance is creating a complex risk environment, with many organisations deploying AI without proper consideration to what is needed to ensure transparency, accountability and ethical oversight.✚
Housing market in an unusually wellbalanced phase
BY SALLY LINDSAY
While lower mortgage rates have helped to spur higher levels of house buying compared to a year ago, demand is being matched by an ample supply of homes hitting the market.
As a result, there has been little upward pressure on sale prices, REINZ July data show.
House sales were down 2.5% in seasonally adjusted terms last month, the third straight monthly decline.
The number of sales is typically understated on the first release, Westpac says commenting on the latest data. It expects these figures will be later revised to around flat.
On a yearly basis, however, sales were up 4% from 6,074 to 6,319. When excluding Auckland, sales increased by 6.%, from 4,166 to 4,421.
Sales increased in eight regions, with Nelson lifting 43.6% increase from 55 to 79 sales. Other regions with notable increases included the Bay of Plenty at 18.9%, Hawke’s Bay 13.5% and Northland 10.5%.
It was around this time last year that the level of activity in the market took a marked step up, so year-on-year comparisons will look less impressive from here on, Michael Gordon, Westpac senior economist says.
QV says the housing market is still adjusting to a softer economic environment, with many buyers carefully weighing affordability, employment security and mortgage servicing costs before committing to a purchase.
“There’s more activity occurring at the lower to mid-value end of the
market, where first-home buyers and owner-occupiers remain the most engaged,” Andrea Rush, QV spokeswoman says.
“These buyers are being supported by relatively stable interest rates, improving access to finance, and a wide range of listings, particularly in larger urban centres.”
Market conditions continue to vary by location and property type, with some regional centres experiencing renewed value growth off the back of earlier declines and ongoing demand for affordable housing.
“While national value levels have broadly stabilised, the recovery is uneven and fragile,” she says.
“Vendors in many areas are having to meet the market to achieve a sale, while some buyers remain hesitant due to broader economic uncertainty.”
With the traditional spring uplift in listings just around the corner, Rush says the next few months will be pivotal in determining whether the market begins to tilt more decisively toward recovery.
In the country’s biggest property market, the biggest real estate agency says the start of winter has failed to chill buyers, with July sales up just over 9% on June’s figures and new listings up more than 14% month-on-month to a 17-year high.
Barfoot & Thompson sold 957 residential properties in July, up from 902 in July last year and it was the highest number of sales the agency has had in the month of July since 2021.
Ignoring the July sales figures for 2020 and 2021, which were unusually high as they fell between Covid
lockdowns, it has been the agency’s strongest July for almost a decade.
Price movement stagnant
REINZ data show the median price for New Zealand increased by 1.8% year-on-year, reaching $767,250.
Excluding Auckland, the median price increased by 3.9% year-on-year to $695,000. Auckland’s median price increased by 2.6% year-on-year, to $975,000.
Eleven out of the sixteen regions reported an increase in median prices compared to July last year.
The most significant year-on-year increases were in Nelson, up 15.7% from $657,000 to $760,000, and in Otago, up 11.1% from $657,000 to $730,000.
“The data show a broad-based resilience in property values, with price growth in some areas, which suggests local markets responded positively to buyer demand despite winter conditions,” Lizzy Ryley, REINZ chief executive says.
In Cotality’s (formerly CoreLogic)
LIZZY
RYLEY
latest Hedonic Home Value Index (HVI), national dwelling values declined by 0.23% in July and by 0.63% over the three months to July.
Of the six main centres, the HVI declined in four, with monthly falls occurring in Auckland, down by 0.59%, followed by Dunedin, down 0.56%, Wellington City, down 0.2% and Christchurch, down 0.07%.
Values were more resilient in Hamilton and Tauranga with monthly gains of 0.39% and 0.92% respectively.
Cotality chief property economist Kelvin Davidson says the outlook remains particularly weak in Auckland. "The latest property value figures re-emphasise that it's still a buyer's market.”
This is borne out by Barfoot & Thompson’s average sale price of $1,100,355, 2.5% lower than June’s Auckland average sale price.
However, it is broadly in line with the average for the first half of the year, which has remained consistent throughout.
“The median sales price was $950,000, 3.2% lower than June’s median price and 2% lower than July last year, but just ahead of the average for the previous three months.
More than 46% of Barfoot & Thompson’s sales in July were transacted for more than $1 million, making this the agency’s strongest July for seven-figure sales since 2021.
Activity at the upper end of the market remained strong, with 51 properties sold for more than $2 million and 16 for more than $3 million – also the agency’s highest volume
since 2021.
And Trade Me Property’s residential asking prices are dropping.
The national average was $821,750 in July, down by 1% compared to June.
In Auckland, the country's largest housing market, the average asking price dropped below $1 million for the first time since September last year to $989,250 in July.
That's down by $17,000 (-1.7%) compared to June and the average Auckland asking price has now declined by $68,050 since March.
Index declines
As the buyer’s market means falling prices and increasing stock levels, the REINZ House Price Index fell by 0.5% in seasonally adjusted terms.
That was dominated by a 1.2% fall in Auckland, where the stock of unsold homes on the market has been rising again in recent months, in contrast to the rest of the country.
Barfoot & Thompson received 1,605 new listings in July – the highest number of new listings the agency has received in the month of July since 2015.
That pushed the total residential stock the agency had available for sale at the end of July to 6074, which iss the highest level it has had in the month of July since 2008, putting stock at a 17 year high.
Westpac’s Gordon says there is always some degree of volatility in month-tomonth price changes, but looking at the annual change confirms the lack of momentum in prices: up just 0.1% in
July, down from 0.3% in June.
“This performance has varied across the country, with dairy-intensive regions tending to fare better than the rest, including a 5% rise in Taranaki and a 2.8% rise in Southland over the past year.”
Sellers feeling the pain
The buyer’s market has also pushed the number of people making a loss when they sell their homes to the highest level since 2014.
Cotality’s latest Pain & Gain Report shows Auckland sellers are the hardest hit, with one in six sales being at a loss in the second quarter of this year.
Across the country 10.6 % of sellers, up from 9.3% in the first quarter lost a total of $128,362,612, which does not include the cost of a sale, such as real estate commission. The median loss was $52,500.
In Auckland the percentage of people who lost money on their house sale rose to 15.9%, in Tauranga it was 13.2% and Wellington 11.9%. The median loss in Auckland was $75,000.
Davidson says the Auckland figures reflect how much prices have fallen and the higher number of apartments, which were more likely to lose money.
The median profit among those who sold for a gain was $279,000. That is well down on the $440,000 median gain recorded during the 2021 peak, but higher than anything recorded before the end of 2020.
Combined, the total gain made by sellers in the quarter was $4.9 billion. ✚
Youthful ambition
An increasing number of young people are entering the advice industry in their 20s. They’re passionate about the job – and about how technology can help - and not short of an opinion about what needs to change.
BY SALLY LINDSAY
Young advisers are not shy about their enthusiasm for the mortgage industry, despite the regulatory challenges and growing compliance demands.
They are bullish about a future that gives them work flexibility and unlimited earning potential, all while helping people from diverse backgrounds and locations into their own homes.
In 2018, more than a quarter of mortgage advisers were aged 2935, but there are an increasing number of even younger people coming into the industry.
These younger advisers will
have a work life dominated by technology and AI. They expect technology to change the way business is conducted and for AI to be the way of the future.
They believe aggregators and banks are falling substantially behind in technology and need to pour money and resources into getting up to speed, to support not only advisers but also clients.
While there are some areas of frustration, young advisers generally feel supported and hopeful of a long career.
TMM spoke to four young advisers about their ambitions and what they would like to see change.
‘You can still be a great adviser at a young age’
Tom Wade
FROM LEFT: MICHELLE ISEMONGER, TOM WADE, ARCHIE MIDDLETON, AMY BRYANT
Now on the cusp of becoming a fullyfledged mortgage adviser, Archie Middleton came into the industry from selling luxury cars.
Seven months ago, he landed at Squirrel Mortgages in Christchurch as a development/construction analyst for managing adviser Nathan Miglani, and learned the business basics while completing his New Zealand Certificate in Financial Services (Level 5).
The 26-year-old had always wanted to be involved in finance - following his father, who had been in the industry for 30 years.
He considers selling luxury cars a perfect pathway to advice: a customer-facing role dealing with different people from diverse backgrounds.
“It gave me self-drive, discipline, confidence with clients and problem-solving skills,” he says.
“It was demanding picking up the phone and calling 30 people a day.
“You get to learn how to talk to people and what they're feeling on the other end of the phone without actually being face-to-face with them.
“That’s a skill that can be used in pretty much every industry, but this one especially.”
The flexibility and income-earning potential also attracted Middleton.
“That was a big part of it, but results only
‘A big AI-push is needed to streamline and connect the entire mortgage network, from application through the life of the mortgage’
Archie Middleton
come through hard work and discipline.
“If you are not disciplined, you start missing stuff and everything can go pearshaped quickly. If you want to keep growing in the industry, you’ve got to be disciplined to provide the best service.”
At this early stage of his career, Middleton says assisting people in putting together their mortgage applications when they think they have few options has been the highlight.
“Talking to them about how we can make their lives and financial position better is the ultimate thing.”
Having recently completed Level 5 qualifications, he says there should be more
practical skills and guidance – putting the theory to the test – instead of learning just standard theory questions.
“If aspiring advisers are already working in a mortgage business, there should be some way to show that – [to] prove that you know more than just the assessments.”
However, Middleton says the Level 5 papers were especially useful in understanding the fundamentals, as he came into Squirrel Mortgages with no experience.
Far from hampering him, however, he believes the lack of experience has given him a fresh pair of eyes and mindset –not influenced by coming through the traditional route of banking.
Long-term aim
His long-term ambition is to be a specialist in development and construction lending, although these deals take a lot longer to complete.
While the process is not complicated, it does take a distinctive way of thinking: using different fundamentals to calculate project costs on a much larger scale and looking outside the major banks for funding, as they often don’t have the appetite for it, Middleton says.
There are fewer developers in the market than first-home buyers and home-owners moving.
And it takes time to build up a developer client base, as it’s based on long-term relationships, integrity and the ability to get the job done.
“But the results are satisfying when you see big projects finished.”
AI push needed
Hindering all advisers recently has been banks’ turnaround times on mortgage applications.
This could be alleviated if the big banks invested heavily in technology – especially adaptive AI, Middleton says.
“Speed is critical in giving customers top service and the best result.”
AI is going to play a big part in new advisers’ work life, but the banks have been slow to adapt.
“A big AI-push is needed to streamline and connect the entire mortgage network, from application to loan being drawn down and through the life of the mortgage. How good it will be depends on how fast banks implement it.”
He says while the industry has been subjected to a wave of new regulations over the past five years, they will change again with the bigger adaption of AI.
Amy Bryant – New Zealand Mortgage Advice (NZFSG), Nelson
After four years as a mortgage adviser, Amy Bryant has one small gripe: the amount of support banks are giving advisers.
“Turnaround times are not nearly good enough. We are sitting here with client applications spending 10 days in a bank queue, when that same client can go into a branch and get a 24-hour turnaround.
“While we haven’t lost clients over it, it is extremely difficult across the board.
“I have had home buyers frantically call me when they’ve had a live deal in place and want some advice.
“I haven’t been able to take over the deal or help them, because coming through me is going to take a minimum six to 10 days. They just don’t have that timeframe up their sleeve.”
Bryant says although she doesn’t have the answers, the main banks need to urgently do something about it.
“It’s not good enough to let this drag out for months with no end in sight.”
Without non-bank lenders, Bryant believes there would be deals that failed to get over the line.
“We definitely use them and they have a big role to play for borrowers outside the main banks’ lending criteria. There are an increasing number of those borrowers.”
She says banks’ turnaround times are the biggest hurdle in doing her job as a competent and empathetic adviser.
“It puts the stress onto advisers of anxious clients and getting loans across the line so deals can be done on time. It shouldn’t be like this.”
Getting started
Now 27, the road to the advice world began for Bryant in 2020. While studying accountancy and working in the profession as part of a client-services team, she bought her first house - and was convinced by the mortgage adviser she used to switch roles. She hasn’t looked back.
“It’s the sheer number of clients you can get into home ownership and watching home owners become first-time investors that makes it exciting.”
Starting out in Hawkes Bay at the end of 2020, Bryant was then forced into a six-month restraint-of-trade break, before starting as the Nelson-based adviser for New Zealand Mortgage Advice in 2021.
As an adviser in a small city, she found it difficult to build up a substantial client base and spread out to the rest of New Zealand, with many clustered around Palmerston North, Hawkes Bay and Central Otago.
“I have clients I have been working with for the past four years, and it’s incredible to
Amy Bryant
see where they have come from and what they are already achieving.”
The flexibility that comes with being an adviser was also an attraction, not to mention the level of income that can be earned with hard work.
“I don’t think I realised that at the time.”
More support, better tech
As well as faster turnaround times from the banks, Bryant would also like to see improvement in both the technology and support provided by aggregators.
In some cases they have the support and guidance for advisers but not the technology, or vice-versa.
“To have both makes a good aggregator and is really important because of the compliance we work under.
“Processes need to be streamlined so advisers are not spending too much time on administration.
“The switch to recording notes rather than typing them out has been a big leap forward, and it would be even better if we had the
technology to help provide financial-advice statements for clients instead of creating them from scratch every time.
“I can see it coming so we can spend more time on being even better advisers.”
Despite banks throwing a turnaround-time spanner in the works, Byant believes the number of deals going through mortgage advisers will increase from the existing 60% plus.
When she started out, she was dealing almost exclusively with first-home buyers, whereas her book now has an increasing number of second-home buyers.
“They are realising the importance of using an adviser and how different the banking system was to a few years ago.
“There are more hoops to jump through after changes to the CCCFA (Credit Contracts and Consumer Finance Act), and more people are wanting to take advice, so over time the number of mortgages going through advisers will increase.
“Once more people realise we are a free service, more people will go, ‘Okay, well, why wouldn’t we get advice?’”
‘It’s the sheer number of clients you can get into home ownership – and watching homeowners become first-time investors – that makes it exciting’
Amy Bryant
Tom Wade, Vega, Cambridge
Stepping into mortgage advising from banking, Tom Wade says one key difference in the two fields provided the impetus to make the switch: being able to find lending for clients from a wide range of providers rather than selling one bank’s products.
Then there was the flexibility and earning potential – basically unlimited.
“It was the excitement of having to build my own business and brand and then the lifestyle that came with it.
“I can work an eight-hour day, break that up whenever I want to and pick up my son from school.”
Wade, now 30, says it does mean needing to be being more in control of his work, being certain of what has to be done every day - and for the next couple of weeks.
Although he did home loans for five years, combining that with business lending for three years at the bank, he found it hard to
find solutions for every borrower he came across.
A word to aggregators
Coming into the advice industry only recently, Wade says the onboarding by aggregators needs to be streamlined and made easier.
“It takes far too long to be onboarded and then accredited across the banks.
“I couldn’t start doing any work for six to seven weeks after I started with Vega.”
Wade says changes are definitely needed - and quickly - but he is not sure if it is aggregator-to-bank or other adjustments that should be made.
He notes the long on-boarding process is leaving advisers without any income for up to two months plus.
Aware of this, Wade says he put funds aside to tide his family over until he was earning again.
He says once onboarded, and even if an
adviser gets a client the next day, it can be another two months until they find a house, have an offer accepted, and then the purchase is settled.
“That’s potentially four months without any income. Putting aside six months of income is a good idea for those new to the industry.”
Bank background helps
Although many people might regard working in a bank as hardly life-enhancing, Wade says it has given him a head start in dealing with first-home buyers, existing home-owners wanting to move into bigger houses, insurance, and clients in all types of situations.
“Having that experience has been a huge benefit, even if I am referring somebody to an insurance adviser or talking to a borrower who is going through a separation.
“You can still be a great adviser at a young age.”
Good lead generation is at the heart of a successful adviser’s business, he says, but can be tricky.
After being in the industry for just six months, Wade says he has already noticed the longer an adviser has been on the ground, the easier it is to find leads from the network he or she has built up.
“Coming in new, it’s risky, as trust needs to be built with everybody you meet.
“Leads can be bought from leadgeneration companies, but they are hit and miss.
“It comes down to building trust and leaning on your own network to begin with.”
This is where the stronger regulations of the past few years protect young advisers, he says.
“Although we might be a bit more regulated than other industries, we are dealing with people’s livelihoods, their money and trust; and the regulations protect them as well as us.”
Bigger, better tech
As the mortgage industry becomes more sophisticated, Wade expects to be embracing bigger and better technology over the next decade.
“It will never replace human advisers, but it will take away the chunkier parts of the process and streamline it.”
He has already seen its capabilities as some of the finance companies Vega deals with have their own apps they are able to use for different tasks.
“People are always innovating and trying to find ways to improve processes or part of a process.
“That will make our job much easier for both us and our clients.
“The more work I can do for them or take away from them the better, because they’ll feel getting a home loan is not hard.”
Tom Wade
Michelle Isemonger
Michelle Isemonger - Loan Market, Auckland
After four years as a mortgage adviser, 27-year-old Michelle Isemonger feels like an experienced hand.
Working with Bruce Patten since 2019, she was initially a loan writer before becoming an adviser.
She was first attracted to the industry while studying finance at university and working at Ray White doing accounts and admin before interning for Patten to get financial experience.
“You hear most people say they fall into the industry rather than purposely enter it.”
A lot of the younger generation are now working more purposefully at getting into the industry. But if you ask anyone who's been in it for five-plus years, usually they've fallen into it.
What’s kept Isemonger in the industry?
“I fell in love with being able to use my degree, which I set out to do, as well as helping people.
“Being an adviser is really a service-based, client-facing job, mixed with a good use of my finance and accounting degree.”
Isemonger didn’t think she would be where she is today when she first started.
“It's definitely been a bit of a whirlwind. I hoped to emulate Bruce and have a solid
‘It can be frustrating if you are not getting answers out of a chatbot…so, no, I don’t think AI will replace our industry’
Michelle Isemonger
lifelong career as an adviser within the office where I worked.”
Mentoring has been an important part of her advancing career.
“I don’t think mentoring ever really stops, but it changes.
“Loan Market is good at pairing up advisers with mentors, no matter what their age and length of time in the industry.”
She says Loan Market will approach business owners who have been in the industry for some time to heavily mentor new advisers.
“Bruce still has advisers that catch-up with him to check on where their business is at. It’s not necessarily mentoring on day-to-day tasks, but business continuity and future projections.”
Tech a major player
Technology has also played a big part during Isemonger’s first years as an adviser – and has changed a lot in a short time.
When she first started, the whole business was paper-based: documents printed and people dropping them into the office.
It has now advanced to better CRM systems for easier application processes, from banks allowing electronic signatures for mortgage structures or top-ups, to Kiwibank recently opening a direct
electronic lodgement that has helped cut down on turnaround times, making the experience with the bank more seamless for advisers and clients.
“The question is, how can we use AI to support the industry? It has to move on, and although there are AI programmes already in existence that can do mortgage applications from start to finish, it’s not what people want.
“They want to be able to call somebody for reassurance and to answer their questions.
“It can be frustrating if you are not getting answers out of a chatbot, but that’s the only avenue to ask questions.
“So, no, I don’t think AI will replace our industry.”
However, she says tech improvements need to be made for advisers’ compliance.
“Compliance is the biggest hurdle advisers are facing.
“It could be simplified and more streamlined, so there are not constant changes - and so we are not having to adjust our processes all the time.
“And we need easy tools and training so our knowledge is up-to-date.”
Aggregators need to be aware of this.
“We have clients working with us and we want to have similar tools across all aggregators.” ✚
Homeowners and developers are increasingly taking out ‘green loans’ –loans at either no interest or lower interest for environmentally-friendly projects. But, as Sally Lindsay explains, the devil is in the detail.
As the world strives for sustainability, green lending is gaining momentum.
Green loans and finance are increasingly being offered by banks, with lower interest rates for home improvements, Homestar-rated housing developments and Green Star commercial property, as well as electric vehicles (EVs) and chargers.
Navigating banks’ specialised green products requires careful comparison of the specific loans, from interest rates to terms and sustainability requirements.
Consumer says the absence of universally accepted standards and definitions regarding what comprises a “green” project is one of the greatest obstacles to green lending.
However, New Zealand’s banks seem to have this sorted out for their green products, and most offer standard packages for their smaller loans.
Smaller green loans often come with much lower interest – or even zero interest. Some banks call them a top-up, others a sustainable loan or eco loan.
Different names, same idea: borrow for good environmental upgrades or purchases and get rewarded with lower interest rates.
The financial incentives can make an environmentally-friendly home or investment property, business upgrades, or building new to the New Zealand Green Building Council’s Homestar standard, more feasible and desirable for home owners and businesses with mortgages.
Levels of green
At its simplest, green loans can be used to buy EVs and chargers, and to undertake home upgrades such as solar-panel hotwater systems, heat pumps, insulation, double glazing and rain-water harvesting or greywater systems to make them warmer, healthier and cheaper to run.
These can be financed through the main banks with green loans of $50,000 to $80,000. For instance, ANZ offers a Good Energy Home Loan of up to $80,000 at
a three-year fixed-interest rate of 1% to customers with an existing home loan, for upgrades making their home and vehicles more energy efficient and better for the environment.
It says 17,944 households have used the loan, with more than $706 million drawn down since it was launched in July 2022.
At a similar level, Westpac has approved more than $260 million in interest-free home-loan top-ups through its Greater Choices home loan, to fund a range of purchases including heat pumps, ventilation, solar systems and batteries and rain-water tanks.
The loans, of up to $50,000, are available for five years.
Sarah Hearn, New Zealand general manager product, sustainability and marketing, says Westpac has lent a further $23 million through its EV personal loan, at an existing rate of 7.99%.
At BNZ, customers can borrow up to $80,000 at a 1% three-year fixed rate, to pay for home upgrades or electric-transport options.
After this time, the loan can be re-fixed and BNZ’s floating home loan rate will apply. Customers can apply to take out multiple BNZ Green Home Loan top-ups for further eligible upgrades, however, the amount they can borrow at the 1% rate will be capped at $80,000.
Existing ASB customers with a minimum of 20% equity in their homes can apply for an $80,000 ASB Better Homes top up to make their houses drier, warmer and more energy efficient, or help to buy a hybrid or electric vehicle.
The initial loan at 1% interest is for three years, and after this time will then revert to 30 years at a different interest rate.
In Kiwibank’s case, it has a Sustainable Energy Loan or top-up available for installing an eligible sustainable energy system, such as solar panels.
The Sustainable Energy Loan’s term is seven years, with the maximum term 10 years at a variable home loan rate.
Customers may also be eligible for a $2,000 contribution over four years towards the cost of what is bought.
More in the pot
Even bigger green loans are available for businesses, including property developers. Businesses using ANZ Green Business Loan can borrow up to $3 million to invest in assets or projects that demonstrate clear environmental benefits aligned to the Loan Market Association’s Green Loan Principles. Eligible projects include renewable energy, energy efficiency, homes and buildings built to Homestar and Green Star ratings, and clean transportation.
About 285 customers have taken out 332 of these loans, totalling $95 million. The Green Business Loan has a special floating rate – currently about 4.05%.
At the end of September last year, Westpac had about $7 billion in sustainable loans lent to business customers, including the property sector.
Hearn says while the bank doesn’t offer a specific interest rate discount on green 6-Homestar-rated homes, Greater Choices allows all its eligible home-loan customers to make energy-efficiency improvements, regardless of the condition of their home.
“We also offer discounted business lending to build energy-efficient housing developments through our Sustainable Business Loan.”
ASB offers a Business Sustainability Loan on a special-purpose base rate plus margin for $25,000 to $2 million, and higher amounts are considered for green-certified residential and commercial buildings.
BNZ has a Green Business Loan at discounted rates – floating or fixed – with no maximum loan mentioned, for renewable energy, clean transportation, sustainable land and water use, energy efficiency and pollution prevention.
Property-development funding of more than $2 million is offered by Kiwibank at preferential rates for 6-Homestar residential properties and 5-Star Green commercial
property. Green star commercial buildings have 1.5% lower vacancy rates, a 3.7-7.6% sales premium and a 6.7% rental premium, according to New Zealand Green Building Council (NZGBC) data.
Increasing in popularity
Two out of every 10 loans Mortgages Online (Monline) advisers write are for green loans to buy EVs.
Monline boss and adviser Hamish Patel says clients are aware of green loans and interested in using them.
“Generally when a borrower is looking at a green loan for a new EV, they will be considering it for energy, such as solar panels and a battery, as well.”
However, he says they often come unstuck with the cost of EVs, as the loan limits from all lenders are from $50,000-$80,000 and cars can tap out at that.
Devil in the detail
The devil is in each bank’s detail, however, Patel says.
For a start, green loans are usually available only for borrowers who have an existing mortgage with the bank and equity in their property.
“Some banks want the loan paid off in five years, while others revert to a 30-year term after the initial loan period, which can make it more flexible for purchases such as solar panels where their life is far beyond five years,” says Patel.
“An EV will not last that long, so borrowers can get trapped.
“While these loans are a great initiative by the banks, advisers need to check how banks will refinance loans that are not paid off in the initial term,” he says.
Patel says there’s a misconception green loans don’t require a full lending application because of the way they are marketed.
He says many borrowers believe they will automatically get a green loan if they already have a home loan with their bank.
“We still have to go through the whole nine yards, and sometimes I ask myself the question whether clients really need a $70,000 new car.”
Value debatable
Moneyhub founder Christopher Walsh says although there’s plenty of choice when it comes to green bank loans, that doesn't necessarily mean they are competitively priced - and it certainly doesn't mean good value in the long term.
Walsh says if borrowers end up wrapping green loans with their mortgages, they’re going to become expensive long-term debt.
“A green loan taken out at 0% interest and
‘While these loans are a great initiative by the banks, advisers need to check how banks will refinance loans that are not paid off in the initial term’
Hamish Patel
isn’t paid off in the interest-free period is going to become part of a 25-year mortgage at about 5% interest and be very expensive.”
He believes borrowers become confused or unsure about this type of financial arrangement and don’t look at the overall cost of the loan.
“It sounds great at 0%, and ‘I can put it on my house’.
“It’s like taking a home-equity loan: you take money from your house and put it on your house.”
Walsh says he is not overly sold on the concept.
“People would be better borrowing from the supplier they are buying from and being forced to pay back the loan in say, five years, without looking to refinance.”
He says green loans are just another way for banks to achieve bigger loan balances - by taking an interest hit for two to three years, but in the long term it becoming profitable.
“There are better avenues for borrowers to improve their homes or buy EVs.”
Access to green finance
For developers, green financing has emerged as a vital mechanism, offering access to capital that not only aligns with their sustainability goals but also potentially enhances the financial viability and market appeal of their projects.
ANZ is the only bank offering business customers up to $3 million in green loans at a cheaper interest rate.
NZGBC chief executive Andrew Eagles says it’s a great start, but that he country needs more green finance, and for the other banks to make similar offers, to enable more Homestar and Green Star rated buildings to be erected.
“The main Australian-owned banks’ strategic goals are for a lower carbon, healthy future, but they need to back this up with action and finance,” says Eagles.
Recent research by Infometrics shows building a Homestar-rated house will cost 0.5-1% more to erect, but lead to savings of up to $98,000 over the life of the mortgage - because of lower interest rates and energy bills.
Depending on the location and property type, total savings over a 30-year loan range from $62,800 for a terraced home in Auckland to $98,000 for a stand-alone home in Wellington.
“While green standards may add a small premium to the initial build cost, the longterm financial benefits, including lower operating costs, increased property value, and access to green financing options, often outweigh the initial investment,” Eagles says.
“These homes qualify for the ANZ loan, and if Kiwibank and the other three big Australian banks offered a similar package there would be many better homes built,” he says.
More than 14,000 New Zealand homes have been built to Homestar and another 6,000 are underway.
Big projects, big saving
Eagles says those needing finance for green multi-unit projects, and who qualify, can get a drop in loan interest of up to 20 basis points.
“That’s quite material in a big project.”
He says one South Island developer with a five to six home Homestar project saved $160,000 in interest through borrowing under his bank’s green building offer.
“The banks don’t seem to be shouting about their lower development finance when they should,” Eagles says.
To qualify for green finance, a developer must design and build to Homestar standard. They get a certificate from NZGBC at the design stage to show the lender they are achieving Homestar - and one when the project is finished.
Eagles says the NZGBC has been encouraging the banks for the past two years to offer more in the way of green finance after it came on tap.
“However, a lot of people still haven’t heard about it.
“The banks really need to get out and tell everybody about what is on offer.” ✚
Want to be an adviser? Take the winding road
Becs Parker's success in the mortgage world comes on the back of significant sales experience in the dairy industry - and starting off in a support role instead of leaping straight into giving advice.
BY SALLY LINDSAY
Butter and cheese is not the obvious background for a mortgage adviser. But for Becs Parker, getting a new dairy company’s products into the supermarket chillers – from not featuring at all to becoming a staple supplier – set her up for a successful advice career.
Rangiora-based Parker honed her skills in the highly competitive grocery industry, starting out at Fonterra before moving to the privately-owned Dairyworks and building its brand.
She then entered the mortgage industry as a client services manager before becoming an adviser – and has been at Mortgage Mates, part of Loan Market, for the past four years, with repeat mortgage business now coming in the door.
She talks to TMM about the unusual route she took to becoming a countrybased mortgage adviser.
How hard was it to get Dairyworks branded products into supermarkets?
It was competitive and extremely challenging to get high-demand products, like cheese and butter, into supermarket chillers.
This involved everything from presenting new product ideas to national-retail head offices, to negotiating pricing and securing shelfspace in stores.
When I started at the company, it was a family-owned business which sourced bulk cheese locally and internationally, repackaging it under its own brand.
The business later expanded into ice cream production, made in-house.
My role was to get these products into stores, where maintaining turnover in the chilled section was a daily battle.
We went from having no presence in supermarket chillers to, at times, outselling much larger, established brands.
I’m proud of the hard work and dedication that made that possible.
Had you had any experience in the industry?
I had previously worked in Wellington as a buyer, responsible for ordering stock for a major grocery distribution warehouse, so I had a strong understanding of the industry.
When I relocated to Christchurch, I applied for a receptionist role at a local food-manufacturing business, as I was in urgent need of work.
The owners recognised me as someone who had been on the ‘other side’ of the industry and offered me a role I could truly make my own.
At the time, the business had been doing basic pallet drops and had started negotiating with head office teams, but there was little in the way of in-store activation or strong relationships.
I stepped in, took full ownership, and over the next six years, grew the brand from having no presence to building a team and achieving a solid share of the market.
What made you turn to another career?
It was a high-pressure job, and I had just had my first child.
As I travelled a bit for work, I decided I wanted to do something else that gave me a little bit of joy.
I bought my first house at 18 and always had a passion for property, money and helping people.
I also thrive on being busy and I wanted something that fitted in with my life.
When my daughter was nine months old, I went to Auckland and passed the Level 5 papers. I was probably one of the first people to do them and they kept my brain active while I was at home on maternity leave.
Did you go straight into advising?
As I had no background or experience in the mortgage industry, I started working with an adviser part-time as
a client services manager (CSM), and then an opportunity arose to take on a full-time role with Mortgages Mates and Brent Findlay.
That’s how I learnt the ropes. I guess the goal at that time wasn't to be a mortgage adviser; it was, “Well, at some point that's what I want to do, but this fits in and I'm learning on the go”.
What did you learn while being a client services manager?
Everything, because I obviously didn't know anything.
When I started, I was [thinking], ‘Why have I done this’?
I didn't have a clue. Not one clue. The banks were helpful and kind, but I had to learn as I went – everything from how fixed rates work to how mortgages are structured and how to deal with anxious and nervous clients.
Having a good sales background and making relationships was probably my key.
I was good at that and then just learned everything else along the way.
Is that a better way to learn being an adviser?
I’ve been an adviser for four years now, and I can honestly say that my background in client servicing and CRM systems was crucial in setting me up for success.
Without that foundation, I would have found the transition into advising much more difficult and likely would have made some early mistakes.
It’s interesting to see how many people are now entering the industry and moving straight into advisory roles. While there’s nothing inherently wrong with that, I do believe there’s a lot of value in gaining some hands-on experience first.
Achieving the Level 5 qualification is a great step, but it doesn’t necessarily provide the practical knowledge needed to confidently advise clients—especially when you’re dealing with something
as significant as someone’s home and financial future.
For me, working in a support role first gave me time to really understand how the mortgage process works from all sides.
In our office, we often talk about how critical it is to fully understand mortgage structures before making recommendations. That kind of learning takes time and exposure.
There might be merit in introducing something like an apprenticeship, or mentoring period, for new advisers to gain that real-world experience.
The industry has grown rapidly, and, with more people entering the field, it’s important to maintain high standards of advice and client care.
Recently, a client asked me how to become an adviser, and I suggested he consider working at a bank for a year first to learn the basics and gain perspective from both sides of the mortgage process.
That approach would be beneficial for anyone.
I didn’t jump straight into advising, even with life and professional experience, because I wanted to do it properly and ethically.
Everyone’s path is different, and there’s room in the industry for a range of backgrounds, but building a solid foundation can make a big difference in the long run – for both the adviser and their clients.
Was it difficult to move into being an advisor from a CSM base?
Not really, because Brent and I worked together all that time.
He obviously taught me a lot, and I knew all the clients we had and have. I've been able to help them.
It was a nice attrition moving to the side as an adviser.
And everyone knows our business as “Brent and Becs”.
What have you found is the most enjoyable part of the job?
Helping people buy their own home. That’s probably the thing that keeps me going and is the biggest reward, particularly when they've got a low deposit.
It’s being able to get them moving and able to follow their dream.
There’s a lot of satisfaction in that.
It must be difficult being a mortgage advisor in a small country town like Rangiora?
We are reasonably close to Christchurch – we’re well known there as well as in Rangiora - and we have clients in all areas of the country.
I don't see it as a stumbling block; with the digital world as it is, we could be anywhere helping anyone, which is probably the best thing that came out of Covid.
I think it's about word of mouth and reputation.
Is there one thing that you do consistently in your business?
Communicate, communicate, communicate.
It’s my number one rule: being upfront and communicating with my clients every step of the way.
There are too many advisers who don't communicate, which is sad. It's not a big thing to do.
We're supposed to be there to hold clients’ hands and communicate the whole way through their mortgage application - from when they first think about buying a home until they secure
one with a mortgage and after. What's been the hardest time in your mortgage advice career?
Covid was hard. Working from home helping people who had lost their jobs. There was a lot of work we were doing that obviously we weren't getting paid for, which is fine, but it was mentally taxing keeping people afloat, doing a vast number of hardship applications and things like that.
The CCCFA [Credit Contracts and Consumer Finance Act] was difficult when it was introduced, and clients were upset that every one of their expenses had to be scrutinised.
It was not good, as different banks had different rules, and it put a lot of admin pressure on.
Now we are dealing with yet another hiccup: mortgage application turnaround times by banks.
It is creating an enormous amount of pressure, especially when a borrower can walk into a bank branch and get approval quickly, while advisers are waiting up to 20 days.
It’s not making us look particularly good.
The only way to fix it is for banks to employ more staff, which some of the banks are doing. It will just be a time factor.
Has it taken long it take to build up a business and a client base?
A long time. I've been an adviser for four years, and I’ve only started seeing a return in the past 12 months.
I'm lucky that Brent and I work together, so we help each other out. But I think it's a fair chunk of time to build a reasonable business. I'd say two or three years. ✚
From I was born and bred in Christchurch.
After the 2010/11 earthquakes I moved to Rangiora, a small country town outside of Christchurch.
Family
I have a husband who runs an irrigation business and two children, nearly six and nine.
Outside Work
We love to get away in our family caravan to a lake with friends.
We do a lot of camping with the children in the summer, but to be honest I’m busy
with them and work and don’t do a lot of anything else.
TV show
Anything British or comedy I can watch after a busy day.
Favourite book
‘Woman Uninterrupted’ b y Brodie Kane.
Favourite music
A mix of pop, rock and 1980’s hits. Music is my chill-out time.
Motto
Be kind and treat people how you want to be treated.
THE NEW MEANING OF ‘MARKETING’: AI-POWERED CRMS
AI-driven CRM – customer relationship management - is the biggest shift in marketing since the internet itself. Paul Watkins explains how, as advisers, you should be using it to rank leads, focus your time, write blogs and personalise all communication.
There was a time when marketing meant taking a 20-minute call from your local radio rep and signing off on a $3,000 spend. Now, the same marketing budget is spent in reverse: 80% on time, talent, and tools — and only 20% on media.
Welcome to the new marketing equation.
Mortgage advisers in this climate are no longer just running ads. They're also creating content, analysing data, nurturing leads and segmenting audiences — all while juggling multiple digital platforms.
It’s time intensive. It’s complex. And it’s not going back.
AI-driven CRMs (Customer Relationship Management platforms) are changing the game.
Personalisation at scale
The real leap forward isn’t just about automation, it’s about personalisation at scale.
Most modern CRMs now use builtin machine-learning to track borrower behaviours (pages viewed, forms abandoned, emails opened), to score leads based on likelihood to convert, and to trigger personalised messages at exactly the right time.
From one-size-fits-all to one-to-one.
Such AI-driven activity means sending a refinancing offer only to clients who took out a loan two or three years ago when interest rates were higher.
Or emailing a first-home buyer guide to 30-somethings who recently browsed KiwiSaver deposit pages.
Or offering equity-release insights to selfemployed visitors who downloaded your investment-property checklist.
This is AI-powered segmentation in action, and it's available right now in tools such as Salesforce, ActiveCampaign, HubSpot and BrokerEngine.
Get your leads scored
Instead of following up every lead blindly, smart CRMs score leads based on recency of engagement, pages visited, type of content downloaded and last interaction or follow-up.
A lead that scores 85 might deserve a phone call today. A lead scoring 40 might need nurturing through a long-tail email journey.
AI takes the guesswork out and focuses your time where it counts.
‘You don’t have to become a tech guru — just someone who knows how to plug in the right tools’
Paul Watkins
Content is still king, but it’s now smarter. AI can’t do all the heavy lifting, but it can help you publish faster and more often.
Update regularly
I hope you are updating your website weekly.
Google rewards activity, yet I often see advisers’ websites with the exact same pages and content they had a year earlier.
If that’s you, then don’t expect too many, if any, leads from it.
The easiest way to do keep a flow of activity is to post new blog entries weekly.
How? Go to ChatGPT and type in, “As a mortgage marketing expert in New
Zealand, please give me 30 blog post ideas, each with a headline that includes a highlysearched term”.
Then, once you have the list, in turn, put each of the 30 into ChatGPT and ask it to write out 500 or so words on that topic.
Now edit it. It can often use words that you would not, so edit it to make it chatty and in your personal style.
Fully AI-generated text is quite easy to spot if you don’t.
AI-powered offers
AI-powered offers which convert include downloadable PDF guides; online Q&A webinars; email drip campaigns personalised by segment; chatbots that answer FAQs and pre-qualify leads; SMS follow-ups triggered by site visits or form completions.
Each of these can be set up with automation inside your CRM, and all of them position you as an expert, not just a loan processor.
You don’t need to be an AI expert, but you do need to respect its power.
Don’t try to DIY everything, as this is complex, highly-skilled work.
You’ll need to either hire in-house talent or outsource to a specialist agency.
Budget-wise, expect six figures annually. But ask yourself: how much time do you waste chasing cold leads?
How much revenue is lost from missed high-intent borrowers?
AI in CRM is the biggest shift in marketing since the internet itself.
Cast a smart net
If you’re still casting a wide net, you’re fishing in the wrong waters.
AI helps you cast a smart net — one that brings in fewer leads, but better ones. More conversions. Less time wasted. Higher ROI.
Reallocate your budget. Start small. Learn the system.
You don’t have to become a tech guru — just someone who knows how to plug in the right tools.
Because in 2025 and beyond, success belongs to advisers who market with precision, not volume. ✚
Paul Watkins is a marketing adviser to the financial services industry.
‘AI helps you cast a smart net — one that brings in fewer leads, but better ones’
The FMA shifts its focus to product suitability
STEVE WRIGHT
In its recently released Financial Conduct Report, the Financial Markets Authority (FMA) sets out its focus for the coming year. For life advisers, poor conduct, unsuitable product recommendations and unnecessary costs are in the FMA’s cross hairs, particularly where these impact people in vulnerable circumstances (and at least one FAP’s licence has recently been cancelled for as a result).
The FMA state “We will triage complaints and reports from product providers to prioritise investigation of adviser conduct that adversely impacts people in vulnerable circumstances (e.g. that exposes them to unsuitable products and/or unnecessary costs).”
On the face of it, this sounds totally reasonable and nothing new, but what might this really mean in practice for life advisers? Let’s unpack a few issues.
“People in vulnerable circumstances”
What is a vulnerable client? There are many obvious examples, new migrants, people whose first language is not the same as that of their adviser, people under severe financial, medical or personal stress, to name a few.
For me though, less obvious examples of vulnerable people could be almost all clients. I believe, to some extent, all clients are vulnerable, simply because they are not experts in life insurance matters and need your advice.
For this reason, the FMA’s position, clear as it is for obviously vulnerable people, may extend to those whose only vulnerability is their need for your expertise. It will certainly be to the adviser’s advantage to keep this asymmetry of information and knowledge in mind and ensure clients are suitably advised and with enough information to make informed decisions.
“Adviser
conduct that adversely impacts people in vulnerable circumstances”
Ensuring adviser conduct is beyond criticism clearly means the absence of the misleading or fraudulent activities mentioned by the FMA, but does it extend to well-meaning conduct but poor advice (advice that is not given with due care diligence and skill, advice which the ‘prudent’ adviser would not give)?
I think it does. Misleading or fraudulent conduct is not the only unacceptable conduct.
Section 431L of the Financial Markets
Conduct Act requires that… ‘A person who gives regulated financial advice to a client must exercise the care, diligence, and skill that a prudent person engaged in the occupation of giving regulated financial advice would exercise in the same circumstances.’
Incidentally, as far as I know, we don’t know definitively how high the bar is set for this requirement.
My suspicion is it will likely be higher than many expect or hope for. For this reason, continually investing in more knowledge, better skill and deeper understanding of products available (not just the ones you might habitually recommend) is essential for all life advisers.
“Unsuitable products”
There are very obvious examples of unsuitable product recommendations, recommendation of products that doesn’t meet any client need, being an obvious one. Less obvious examples, however, might include:
• product recommendations that are not made (where a need exists); or
• the recommendation of product or combinations of products, that is less than optimal for covering the client’s need.
Judging ‘unsuitable product recommendations’ is likely to be a matter of degree and not always easy to identify. In other cases, recommendations or omissions will be fairly self-evident.
I believe there are several examples of product recommendations (or the absence of product recommendations) commonly made, that may be judged to fall short of the S431L or other advice conduct requirements.
This will put advisers in a precarious position, particularly if complains are made to a Dispute Resolution Service (DRS).
The good news is many of these can be easily addressed once identified, understood and incorporated into the adviser’s advice philosophy and advice quality assurance standard.
“Unnecessary costs”
The obvious example here is the unnecessary cost of the product not needed, but once again, there may be less obvious examples, for example:
• if the premium structure recommended is unsuitable; or
• if the product, benefit or option combinations leads to premium inefficiencies; or
• if the product recommended leads to indirect costs, like inefficient income tax outcomes.
Any of these could lead to ‘unnecessary costs’, which may not appear on the FMA’s radar, but they could well come before a DRS via complaint!
Again, the good news is many of these
potential pitfalls for advisers can be overcome with better knowledge, product understanding and better advice.
It’s difficult to defend against risk we haven’t identified. We don’t know what we don’t know! For this reason, improving advice skill and product knowledge seems to me like insurance for advisers, because it can help reduce the risk of any unwelcome and unexpected determinations that advice given was not up to the standards required.✚
Steve Wright has spent the past 20 years in sales, product and professional development roles with insurers. He is now independent, helping advisers mitigate advice risk through advice coaching.
The Top 10 stories on tmmonline.nz
A lot has happened in the market since the last edition of the magazine. Here are the most-read industry stories from tmmonline.nz
01 FURTHER CUTS TO OCR MIGHT BE FORCED ON RBNZ
With about 40% of existing mortgages due to roll over in the next six months and another 10% on floating rates, now could be the best time for those borrowers. That’s because Kiwibank is predicting the RBNZ will be forced to cut interest rates more than either it or the market currently expects, due to weaker economic data both here and overseas.
02 FMA OFFERS MORE INSIGHT INTO ADVISER MISCONDUCT TRENDS
Advisers selling mortgages and insurance through misleading or fraudulent activities are coming under the beady eye of the Financial Markets Authority (FMA).
03 NEW EXCLUSIVE MARKETPLACE LAUNCHED FOR BUYING AND SELLING ADVISER BOOKS
In what could be a global first, Dylan Ferreira from Vega has launched a new website-based business where New Zealand and Australian advisers can exclusively buy and sell mortgage, insurance and wealth books.
04 BETTER PATH NEEDED FOR NEW MORTGAGE ADVISERS
Higher qualifications and standards across the board are needed for advisers coming into the mortgage industry, says Matthieu OloWhaanga of Tasman Finance Partners.
05 MORTGAGE FRAUD RED FLAGS OUTLINED
There has been an increase in suspected mortgage fraud being reported to the FMA.
06 FAMNZ BOSS STEPS DOWN
Leigh Hodgetts, the inaugural head of FAMNZ, has left the organisation..
07 SERVICE AGREEMENTS COULD HELP BANKS PROCESSING TIMEFRAMES
As turnaround times at the major banks show little sign of improvement, FAMNZ wants clear service level agreements introduced.
08 SURGE IN COMPLAINTS AGAINST ADVISERS
Complaints about mortgage, insurance and wealth advisers made up the largest number of cases investigated by Financial Services Complaints Ltd (FSCL) in the year to the end of June.
09 [TMM PODCAST] XCEDA AIMS TO BE A KEY NON-BANK LENDER
In the latest TMM Better Business podcast we talk to Xceda chief executive Daniel McGrath about the company’s transformation and its new loan products.
10 ADVISERS WELL POSITIONED TO FILL SME LENDING GAP LEFT BY BANKS
Small businesses are finding it tougher to get bank loans, leaving some struggling to manage their cash flow.
To keep up with all the news make sure you check www.tmmonline.nz regularly. Or you can get the news and rates update sent to you each day.
Sign up to the TMM email newsletter. tmmonline.nz/newsletter-signup
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