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The association has highlighted the various opportunities for Australian brokers in New Zealand.
The Finance Brokers Association of Australasia (FBAA) has encouraged Australian mortgage brokers to consider expanding their operations in New Zealand following the launch of its sister organisation, the Finance and Mortgage Advisers Association of New Zealand (FAMNZ).
According to the FBAA, only around 50 per cent of mortgages in New Zealand are written by finance and mortgage advisers (as brokers are known there).
In contrast, recent data from the Mortgage & Finance Association of Australia (MFAA) found that mortgage brokers in Australia wrote 71.8 per cent of all new residential home loans between October and December 2023.
FBAA managing director Peter White AM said that this may be the “perfect time for Australian brokers who want to increase their business to consider operating within New Zealand”.
“As we all know, customers trust their broker and usually become a customer for life,” White said.
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“As new customers in New Zealand switch to using a broker, many will not only provide repeat business but become an excellent source of referral.”
According to White, New Zealand mortgage advisers have long suffered from public confusion and a lack of “effective representation and advocacy” and that FAMNZ aims to educate the public and explain how mortgage advisers can act in their best interests for “greater choice and expertise”.
“New Zealand uses the term ‘adviser’ for many different sectors including finance broking, financial planning and insurance, so it has been difficult for mortgage advisers to differentiate themselves,” White added.
“We have already made great inroads into helping key government agencies better understand the role of mortgage advisers and to be honest I was shocked that not even the country’s Commerce Commission (equivalent to the ACCC) knew how our industry operated.
“FAMNZ will be a fierce advocate for the interests of finance and mortgage advisers, and of course we will be working hard to grow the market share.”
The FBAA announced the formation of the FAMNZ during the national Think Forward conference on 3 November 2023. According to the FBAA there had not been an industry body exclusively representing finance and mortgage advisers prior to the launch of FAMNZ.
White said the response from New Zealand mortgage advisers has been “overwhelming” so far, with advisers “lining up to join the moment the application page on [the] website went live”.
Furthermore, FAMNZ recently announced the appointment of Leigh Hodgetts as its country manager.
White said Hodgetts’ appointment was a “testimony to the positive way FAMNZ is being viewed across the nation” while highlighting the standards the association wants to set within the sector.
[RELATED: FBAA appoints new NZ country manager]
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