CEO Richard Klipin shared his thoughts on mortgage adviser market share in New Zealand with NZ Investor's Jayden Fennell.
Article originally published 14 September 2022 on the NZ Adviser website.
The mortgage adviser market share is slowly increasing in New Zealand as lending criteria tightens and interest rates continue to climb.
In Australia, mortgage brokers facilitated 68% of all new residential loans during June 2022, a figure which is increasing at a rapid rate. However, in New Zealand, the percentage was much lower. Financial Advice New Zealand CEO Katrina Shanks estimated that mortgage adviser share in NZ sat at approximately 50%.
Financial Services Council CEO Richard Kilpin said while that data was not tracked in NZ, what the FSC and its members had seen over the past several years was that the mortgage adviser market share was certainly trending upwards.
“This is most likely due to the significant levels of economic volatility we’ve experienced recently, along with rising interest rates and regulatory changes, which tend to make the market more confusing for people,” Kilpin said.
“That’s where people start looking to brokers to support them in navigating these tricky situations. Financial advice, particularly when it comes to big life decisions like purchasing a home or investment property, can really make a huge difference.”