Are you thinking about becoming a mortgage adviser (often incorrectly referred to as a mortgage broker) in New Zealand and curious about how much you could earn?

Knowing the salary range for mortgage advisers can give you a clearer picture of what to expect.

In this article, we’ll take a look at the typical earnings for mortgage advisers in NZ, the factors that affect their income, and the key trends shaping the industry.

What’s the salary range for mortgage advisers in NZ? 

The average annual salary for mortgage advisers in NZ can sit around $50,000 to $120,000 NZD. However, top-performing advisers with significant experience and a strong client network can earn well above this range, sometimes exceeding NZD $250,000 per year.

Typically, mortgage advisers receive 100% of their income from commission. This means that the more loans they settle, the more they earn. 

Some businesses will hire and pay their advisers a salary and bonus structure. This gives better income security, however, quality advisers almost always earn more if they are on commission only.

The main banks in NZ pay a commission once the loan settles:

• ANZ 0.85% upfront and $150 when the client refixes

• ASB 0.85% upfront and $150 when the client refixes

• BNZ  0.55% upfront and 0.15% trail commission

• Westpac 0.60% upfront and 0.20% trail commission

• Kiwibank 0.55% upfront and between 0.15% trail commission

What influences a Mortgage Adviser’s earnings?

The income of mortgage advisers in New Zealand varies based on several factors such as experience, location, client base, and the advice firm they work for.

1. Experience
   Experienced mortgage advisers tend to command higher salaries due to their expertise and track record of successful deals. Also due to trail commission payments, generally, the longer an adviser is operating, the greater their trail commission earnings are.

2. Location
   Advisers operating in high-demand areas with expensive real estate markets, such as Auckland, Christchurch and Wellington, often earn more than those in smaller towns or rural areas.

3. Client Base
   Brokers who serve a diverse and loyal client base, including first-time homebuyers, investors, and commercial clients, can generate higher commissions and referral business.

4. Advice Firm
   The size and reputation of the advice firm also play a role in determining compensation. Established firms with a strong brand presence may offer competitive salary packages, bonuses, and leads.

5. Performance and Sales Skills
   Advisers with excellent sales and negotiation skills can maximise their earnings through successful deal closures and client satisfaction.

How stable is the NZ mortgage advice industry?

Now you may think, all the above sounds great - but how stable is the industry overall?

The mortgage advice industry in New Zealand has seen steady growth in recent years and now over 50% of mortgages originate through a mortgage adviser (versus going direct to the bank). This has grown from around 30% in 2020. 

In comparison, Australia has over 70% of mortgages originating from brokers and the USA has over 90%. This shows the enormous potential the NZ market still has to grow.

The mortgage advice industry has seen significant change since the introduction of FSLAA (Financial Services Legislation Amendment Act) in March 2021 which means advisers have more obligations and duties to the law and their clients. 

This has been met with increased support in the industry by technology and compliance professionals to ease the regulatory burden on financial services. 

Final Word

With competitive earning potential that increases with experience and skills, the mortgage advice industry is a promising field. In New Zealand, it has significant growth potential and has increasing opportunities for advisers. This could be the perfect industry for you to invest in your career!