Service agreements could help banks’ processing timeframes
As turnaround times at the major banks show little sign of improvement, FAMNZ wants clear service level agreements introduced.
Tuesday, July 1st 2025, 8:50AM 
4 Comments
by Sally Lindsay
As turnaround times at the major banks show little sign of improvement, FAMNZ wants clear service level agreements introduced.
“That’s standard in most business partnership – and this should be no different,” Leigh Hodgetts, FAMNZ country head says.
“Right now, consumer choice is being compromised.”
FAMNZ members are consistently reporting delays of 7–10 days on average, and even longer for complex applications. These delays are adding pressure and uncertainty at critical moments in the home loan process, she says
“Right now, consumer choice is being compromised.”
“Turnaround times remain a serious and ongoing challenge – for advisers and especially for their clients. There is no “one size fits all” as each application is different and each lender has different procedures.”
The turnaround delays are largely a capacity and capability issue, Hodgetts says.
“Banks have been onboarding new staff, but there’s a natural learning curve that comes with training and upskilling. Inexperienced teams are contributing to slower response times, asking more questions or requiring rework that resets the waiting time for an outcome,” she says.
“We’re also still seeing the effects of overly prescriptive deal assessments—a hangover from the CCCFA changes.”
Hodgetts says heads of third party banking have acknowledged the issue and are investing in automation, staffing, and process improvements. “These changes are welcome—but there’s still work to do to achieve parity and ensure consistency across all channels.”
Talks have started on service level agreements.
There are several solutions, FAMNZ says. Banks can support advisers – and ultimately clients – by continuing to invest in training, resourcing, and consistent service models across all channels.
It wants fewer forms and a more standardised approach across lenders to improve efficiency. The current inconsistencies between banks add complexity and unnecessary duplication, which only slows the process down further, Hodgetts says.
“Listening to feedback and responding quickly in time-sensitive, high-stress situations is vital.”
She says what advisers are asking for isn’t unreasonable: clear expectations, reliable processing timeframes, and a genuine partnership approach. “We want to work together to deliver the best outcomes for New Zealand borrowers. That’s a shared goal—and one we believe the industry can achieve.”
Another way around the delays for mortgage advisers is using non-bank or specialist lenders that are not always accessible to the public direct.
Non-bank or specialist lenders are getting more business as a result of their service and ability to meet clients’ needs in a timely manner,” according to FAMNZ.
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Comments from our readers
Unfortunately, some of the aggregators in New Zealand don’t want the banks to offer these online portals to mortgage advisers because it’s the next logical step at least for those advisers now with their own FAP licence to be dealing directly with the banks without any aggregator involvement. The aggregators knowing this want any bank online portal introduced to also talk to their own aggregator owned CRM.
Well, it’s 2025 and it’s about time banks here started investing money in the adviser channel with now accounts for 60%+ of their new home loan business offering an online portal without any aggregator involvement and honouring their earlier pledge to deal directly with those mortgage advisers who have their own FAP licence.
A bank online portal for mortgage advisers has the added benefit of the client’s personal and financial information been safeguarded from access by any unauthorised third parties whilst it’s sitting in an aggregator owned CRM. This keeps both the adviser and the bank 100 percent compliant with their Privacy Act obligations, something that lenders in Australia are very focused on currently given the increasing number of privacy breaches now occurring globally.
Spot on. Bank online portals for mortgage advisers in NZ should have been introduced years ago as they would have vastly improved the current turnaround times that banks now provide to our clients. As you correctly state above certain aggregators have been anxious though to control the introduction of adviser portals by the banks. The simple fact is that these aggregators are looking out for their own businesses first, not their members and certainly not what is best for the industry. Insurance advisers with their own FAP Licence can now deal directly with the insurers without having to belong to an aggregator. The same needs to apply to the mortgage adviser industry as the excuses been made by some banks against this happening now seem to have more to do with protecting aggregator businesses than what is actually best for the consumer. Clearly a mortgage adviser still being forced to belong to an aggregator is not in the consumer’s best interest if this “forced relationship” is now impacting on the turnaround times the adviser should be able to offer their client if they were instead able to deal directly with the banks themselves.
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