Professional mortgage advice central as wave of fintechs expected

Fintechs offering cheap mortgages without advice to borrowers won’t make mortgage advisers redundant.

While there is expected to be a proliferation of fintechs offering a range of online financial services, including mortgages, to Kiwis as open banking becomes embedded, the Finance and Mortgage Advisers Association of New Zealand (FAMNZ) says professional advice will become even more critical.

Just recently launched are fintechs Dosh and Indi offering home loans without any financial advice to borrowers.

Dosh offers a suite of Westpac mortgages and a loyalty cashback reward of up to 0.12% over the term of a mortgage, while Indi (The Independent Mortgage Company) has residential floating mortgages funded by KiwiSaver scheme Generate at rates well below major banks.