With around only 50 per cent of mortgages in New Zealand written by finance and mortgage advisers (as brokers are known there), there are enormous opportunities for Aussie brokers to expand across the ditch, according to the Finance Brokers Association of Australasia (FBAA).

The FBAA’s sister organisation, the Finance and Mortgage Advisers Association of New Zealand (FAMNZ) is now officially open for members, although it has been establishing itself with regulators, government agencies, MPs, and advisers since February. 

FBAA managing director Peter White AM said the response throughout New Zealand has been overwhelming, with advisers lining up to join, “the moment the application page on our website went live.”

He said New Zealand mortgage advisers have suffered for a long time through public confusion and a lack of effective representation and advocacy.

“New Zealand uses the term ‘adviser’ for many different sectors including finance broking, financial planning and insurance, so it has been difficult for mortgage advisers to differentiate themselves,” he explained.

Remarkably, in recent years until FAMNZ’s opening this year, there has not been an industry body exclusively representing finance and mortgage advisers.

“We have already made great inroads into helping key government agencies better understand the role of mortgage advisers and to be honest I was shocked that not even the country’s Commerce Commission (equivalent to the ACCC) knew how our industry operated.

“FAMNZ will be a fierce advocate for the interests of finance and mortgage advisers, and of course we will be working hard to grow the market share.”

Mr White said this may be the perfect time for Australian brokers who want to increase their business to consider operating within New Zealand.

“As we all know, customers trust their broker and usually become a customer for life.

“As new customers in New Zealand switch to using a broker, many will not only provide repeat business but become an excellent source of referral.”

He said FAMNZ will be educating the public and explaining how mortgage advisers act in their best interests and bring greater choice and expertise.