Time for mortgage advisers to be more hands-on

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Advisers need to get on the front foot and work with their clients on a long-term strategy amid a weakening economic outlook, the Finance and Mortgage Advisers Association of New Zealand (FAMNZ) says.

Thursday, September 25th 2025, 12:18AM 2 Comments

by Sally Lindsay

It is backing up comments from ASB urging potential homeowners and those with mortgages to consult advisers due to economic uncertainty and a potential turning point in interest rates.

In its recent investor confidence survey ASB found a flat housing market, sharemarket volatility and global geopolitical and trade uncertainty are weighing on people’s views.

ASB senior wealth economist Chris Tennent-Brown says from a property investment perspective, the thing that is weighing on the mood is just how flat the market has been.

“It’s been taking a bit longer than anyone would have rightfully expected to see any sort of pickup with these lower mortgage rates. It feels like it’s a bit of a slow burn."

He says for advisers now is a great time to start checking in with clients to see where their mind is at.

With GDP contracting 0.9% in the June quarter and predictions of interest rate cuts, FAMNZ managing director Peter White says expert advice is more valuable than ever for homeowners and investors.

However, he says advisers can’t wait for their customers to reach out but should “get on the front foot” through what is a turbulent economic period for many.

“Advisers should be proactive, and right now be contacting their customers to find out how they are travelling and discuss their needs and ways to assist them.”

He pointed out that the market share for advisers is about 50%, but the aim of the industry must be to grow this share.

“A higher market share for mortgage advisers brings massive benefits to New Zealand as it increases competition while providing more options and greater expertise to consumers.”

But this won’t happen with a passive approach, White says.

Consumers often don’t know what options are available to them, but advisers can provide these solutions, a message FAMNZ is actively promoting across the nation.

While advocating for the industry with regulators, government and others, White says FAMNZ is raising the public profile of advisers through the media, but the onus is on them to back these efforts up by providing exceptional customer service.

“Advisers act in the customer’s best interests according to their individual circumstances, something no lender can do. At a time of changing interest rates and when some homeowners are struggling, it is time to “be proactive, go the extra mile and show consumers a level of care that will build trust.

He says not only will advisers have a customer for life, but every customer has friends and family and these referrals build successful advisory businesses.

ASB’s survey found people under 39 years were the most confident, while the over-60’s were the least optimistic.

Tennent-Brown says this could reflect where different age groups hold their assets. He says a well-informed long-term plan is a good step. “Hopefully people will set goals carefully with an adviser to get used to some of these uncertain events.

“As we see, they rattle confidence – but low confidence doesn’t necessarily correspond with low investment returns, as we’ve seen this year.”

Guidance, advice and sticking to long-term goals is going to be important, Tennent-Brown says.

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