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Mortgage Advisers Tell It Like It Is There’s a strong future for mortgage advisers, but clouds on the horizon and a few irksome issues are keeping them awake at night.
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ealing with banks is going to be difficult, dealing with bureaucracy even worse - but on the bright side it is a growing industry, populated by enterprising people. These were the latest findings from TMM’s annual survey of mortgage advisers. The survey threw up a wide range of information about advisers: they were predominantly veterans, with more than half of them having been in the business for at least 10 years. Another 25% had between five and 10 years’ experience. Interestingly, and perhaps worryingly, there were not a lot of new-to-industry advisers nor respondents with less than two years’ experience.
BY ERIC FRYKBERG This may be due in part to new adviser regulations which came into effect on March 15. The Financial Services Legislation Amendment Act has raised the bar for entering the industry – and having Auckland, the largest market, in lockdown for more than 100 days was hardly conducive to bringing new advisers into the fold. The survey results were largely reflective of the make-up of the advice industry: TMM estimates there are between 1800 and 2000 practising mortgage advisers. New Zealand Financial Services Group, which includes Loan Plan and Kepa, has a combined membership of around
1000 advisers. Around 50% of survey responses came from “The G”, as the group is known. One of the changes from the previous survey was that SHARE/Newpark was now the second largest group, with around 250 advisers. The other key change was the emergence of Kiwi Adviser Network, with 125 advisers. That puts it on par with the likes of Astute, Mortgage Link, and Mike Pero Mortgages, who all have similar numbers. TMM expects that to change again next year when another group makes a push into the mortgage-adviser market in the first quarter of 2022.
How many years have you been a mortgage adviser? New to the industry 3%
Less than two years 8%
Two to five years 20%
Five to 10 25%
More than 10 years 43%
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TMM 04 • 2021
