When someone says they offer "independent mortgage advice," it should mean something specific. But in New Zealand, the word gets used loosely, and it's worth understanding what it actually means — and what to look for.
What independent means
An independent mortgage broker isn't employed by a bank. They don't work for one lender, and they're not limited to placing loans with a small group of lenders their employer has agreements with.
Instead, they have access to the full market — the major banks (ANZ, ASB, BNZ, Kiwibank, TSB, Westpac, and others) plus a range of non-bank lenders. They assess your situation and recommend the lender that fits you best, not the one that fits their employer's targets.
At River Path, we work with 25+ lenders. When we recommend one, it's because that lender's policies, rates, and appetite suit your specific situation — not because we have a quota to fill.
Why it matters
When you walk into a bank branch, the person you talk to can only offer you that bank's products. If their policy doesn't fit your situation, that's it. They can't suggest a competitor.
An independent broker sees the full picture. Different banks have different policies for things like:
- How they assess self-employed income
- What deposit percentage they require
- How they treat bonus or commission-based pay
- Whether they'll lend on certain property types
- How aggressively they'll price to win your business
A broker who only works with three or four lenders might miss the one that would have said yes. An independent broker doesn't have that blind spot.
How commission works
Here's the part people wonder about: if brokers are paid by the bank, how can they be independent?
Fair question. Here's how it works in practice.
The major banks all pay broker commission at similar rates — typically 0.55% to 0.85% of the loan amount upfront, plus a small quarterly trail. The rates between ANZ, ASB, BNZ, Westpac, Kiwibank, and the others are close enough that there's no meaningful financial incentive to send a client to one bank over another.
Where the commission varies more is with non-bank lenders, where it might be lower (or in some cases, nothing at all — which is when a broker fee might apply). But for standard residential lending through the main banks, the commission is broadly the same.
The legal framework
Independent mortgage brokers in New Zealand operate under the Financial Markets Conduct Act 2013. This legislation requires us to:
- Act in the client's interest
- Exercise care, diligence, and skill
- Not give advice that is misleading or deceptive
- Disclose any conflicts of interest, including how we're paid
We're supervised by the Financial Markets Authority (FMA) through our Financial Advice Provider, NZ Financial Services Group. Our disclosure statement is available before we give any advice — it sets out exactly how we work, how we're paid, and how to complain if you're not happy.
This isn't optional. It's the law.
Going direct vs using a broker
Some people prefer going direct to their bank. That's fine — but it's worth knowing what you're giving up.
When you go direct, you see one bank's products, one bank's rates, and one bank's policies. If their lending criteria don't suit your situation, you start again somewhere else.
When you use an independent broker, you see the whole market in one conversation. Same rates, same products, but more options and someone whose job is to match you to the right one.
There's no cost difference. Banks offer the same rates to broker-introduced clients as they do to walk-in customers. In many cases, a broker can negotiate a better rate because they know what's genuinely on the table.
What to look for
If you're comparing brokers and want to check whether they're genuinely independent, ask:
- How many lenders do you work with?
- Are you tied to any particular bank or group?
- Can you show me options from at least three different lenders?
- How are you paid, and does it vary by lender?
A good broker won't hesitate to answer these. If they do, that tells you something.
Talk to us
We're independent, we work with 25+ lenders, and we're happy to explain exactly how it all works. Send us a message or call Gareth on 021 997 150 or Matt on 021 997 106.
