If you’re buying your first home, one of the earliest decisions you’ll face is who to turn to for your home loan. Should you go directly to your bank, or should you work with a mortgage adviser?
At first glance, it might seem easier to go straight to your bank. After all, they already know you, you probably have an account with them, and it feels like the path of least resistance. But there’s a lot more to consider.
As mortgage advisers who work with first-home buyers across New Zealand every day, we’re often asked: What’s the difference? Is there a benefit to using an adviser? And will it cost me anything?
This guide breaks it down clearly so you can make the right choice for your situation.
What Does a Mortgage Adviser Do?
A mortgage adviser (also known as a mortgage broker) is a licensed professional who helps you find and secure a home loan. They do not work for one particular bank. They work for you.
Mortgage advisers assess your financial situation, research the market, compare offers from multiple lenders, and structure your loan based on your goals, income, and future plans. They manage your application, help with paperwork, liaise with the lender and your solicitor, and guide you all the way through to settlement.
In most cases, advisers are paid a commission by the lender once your loan is approved. There is usually no cost to you.
What Happens When You Go Directly to a Bank?
When you approach a bank directly, you will usually deal with a mobile mortgage manager or lending specialist. They can only offer you that bank’s products, interest rates, and lending criteria. If your situation doesn’t meet their policies, they may decline your application, even if another lender would be willing to help.
You’ll be responsible for filling out the application, supplying documents, and chasing up progress. If you’re declined, you’ll need to start from scratch with another bank.
Why First-Home Buyers Often Choose Advisers
Here’s why more first-home buyers in New Zealand are choosing to work with mortgage advisers.
- Wider Access to Lenders
Most advisers work with a wide range of lenders. This includes major banks like ANZ, Westpac, ASB, and BNZ, as well as non-bank and second-tier lenders such as Liberty, SBS, and Pepper Money. This means you can be matched with the right lender for your specific situation.
This is especially helpful if you’re self-employed, have a small deposit, or your income includes flatmates, boarders, or variable earnings.
- Loan Structure Tailored to You
Banks will often offer standard loan products. An adviser will go further, helping you understand the best way to split your loan, whether to include revolving credit or offset options, and how to structure repayments around your cash flow.
They also help you think ahead, making sure your loan works not just for today but for your future plans too.
- Guidance Through the Entire Process
Buying your first home can be stressful and confusing. A good mortgage adviser doesn't just help with the loan. They become your guide through the whole journey.
They will explain lender conditions, help coordinate documents, answer questions from your lawyer or agent, and keep things moving so you can focus on the big picture.
- Ongoing Support After You Buy
Your relationship with your adviser continues even after you’ve moved in. They’ll check in when your fixed rate is about to expire, make sure your loan is still the right fit, and help you adjust things if your circumstances change.
With banks, it’s usually up to you to ask for a review.
What About Interest Rates?
Some people assume that going straight to the bank gets you the best deal. That’s not always the case. Advisers often have access to the same or better interest rates, especially when they’re placing multiple loans with a lender and can negotiate on your behalf.
A good adviser will also help you compare more than just rates. They’ll walk you through loan features, cashback offers, fixed term flexibility, and repayment strategies.
Are Mortgage Advisers Really Free?
In nearly all cases, yes. Mortgage advisers are paid by the lender once your loan settles. You won’t be charged for their time, and they’re required by law to disclose if a fee might apply — for example, if you’re borrowing a very small amount or working on a very complex application.
For most first-home buyers, the service is completely free and can end up saving money in the long run through better rates, smarter loan structures, and fewer mistakes.
When Going Direct to a Bank Might Make Sense
There are some situations where going directly to a bank could be worth considering:
- You have a long-standing personal relationship with a specific bank manager
- You’re confident that a particular bank’s offer suits your needs
- Your situation is very straightforward and you already know what you want
Even so, it can still be helpful to get a second opinion from an adviser before you lock anything in.
Which Option Is Right for You?
If you value choice, support, and expert advice, a mortgage adviser can offer more options and stronger guidance throughout the process. You’ll benefit from tailored recommendations, access to multiple lenders, and someone who’s working solely in your best interests.
At Luminate, we specialise in helping first-home buyers across New Zealand. We take time to understand your situation, explain your options clearly, and support you from start to finish.
Ready to make a confident decision about your first mortgage?
Book a free First-Home Planning Session with Luminate.
We’ll help you compare options, get pre-approved, and structure your loan the smart way.
Visit www.luminate.co.nz | Email askus@luminate.co.nz | Call 0800 333 400
