Using a Mortgage Adviser vs Going Direct to the Bank: Which Is Better?
If you’re buying your first home in New Zealand, one of the biggest early decisions you’ll face is how to arrange your mortgage. Should you walk straight into your bank, or should you work with a mortgage adviser?
Both options can work — but they’re not equal. Understanding the differences can save you money, time, and a lot of stress.
Going Direct to the Bank: The Pros and Cons
The Pros
Going directly to your bank can feel convenient. You already have accounts there, and it might seem simpler to deal with one institution. Some buyers also assume their bank will automatically give them the “best” deal.
The Cons
The biggest limitation is choice. When you go direct, the bank can only offer you their products, rates, and lending criteria — even if another lender would suit you better.
Banks also work to internal policies that may not be flexible. If your application doesn’t fit neatly into their criteria (self-employed income, recent job changes, low deposit), the answer may simply be “no” — without alternatives.
Using a Mortgage Adviser: The Pros and Cons
The Pros
A mortgage adviser works for you, not the bank. They compare multiple lenders to find the most suitable option for your situation — not just the cheapest rate, but the right structure, flexibility, and long-term fit.
Mortgage advisers:
Know which banks are most flexible for first-home buyers
Help prepare your application so it meets lender expectations
Negotiate interest rates and cashbacks on your behalf
Guide you through KiwiSaver withdrawals and low-deposit options
Support you from pre-approval through to settlement
For many buyers, this guidance can mean the difference between thinking you can’t buy and actually getting approved.
The Cons
Some buyers worry advisers will cost them more. In reality, most mortgage advisers in NZ are paid by the bank, not by you. The interest rates offered are usually the same — and often better — than what you’d get going direct.
Which Option Is Better for First-Home Buyers?
If your situation is very simple — high income, large deposit, stable employment — going direct may work.
However, most first-home buyers benefit from advice, strategy, and lender choice. A mortgage adviser looks at:
How to maximise borrowing power
Which bank suits your deposit level
How to structure loans for flexibility and future plans
How to avoid costly mistakes before you sign anything
Importantly, advisers help you plan ahead, not just get approved.
Long-Term Impact Matters
Choosing the wrong lender or loan structure can cost tens of thousands of dollars over time. Interest rates change, life changes, and flexibility matters. An adviser helps future-proof your decisions — especially if you plan to upgrade, refix, or repay your mortgage faster.