Jessica Wilson

PHOTO: SUPPLIED Consumer rights body Consumer NZ doubts whether mortgage brokers can find a better loan rate than someone shopping around the market themselves. Consumer’s Jessica Wilson.

They provide a free service, can save you money on your home loan, and can help when your life circumstances change.

They can even work out the quickest way to pay down that dreaded mortgage and save money on interest payments. For some homebuyers, mortgage brokers are an invaluable ally. So why do so few New Zealanders use one?

The mortgage broking market is relatively new in New Zealand. Traditionally, home loans have been dominated by banks, with most borrowers going directly to their branch for a mortgage. The advice industry has only risen to prominence over the past two decades, as lenders began to accept third parties in the home loan process. 

The advice industry is growing, but loans placed by brokers only represent about 40 per cent of the market, according to industry estimates.