Is a mortgage broker free in NZ? How brokers get paid
If you’re buying your first home in Papakura or South Auckland, you’ve probably wondered how a mortgage broker can help for free. Here’s how it works.
For most borrowers, yes. In New Zealand, lenders usually pay the broker a commission when your loan settles. A fee can apply in some situations, such as repaying or refinancing within a set period. Every adviser must explain how they’re paid, in writing, before giving advice.
By the Moneyplant Advice Team · Last reviewed October 2026
How mortgage brokers get paid
When your loan settles, the lender pays the broker an upfront commission based on the size of the loan. Many lenders also pay a small ongoing trail commission while the loan stays with them. The rate you’re offered is the same as, or often better than, what you’d get going to the bank yourself.
When you might pay a fee
If you repay or refinance your loan within the lender’s clawback period, the lender can ask for some of the commission back. Some brokers pass this on to the client. A broker may also charge if they’ve done significant work and you then go elsewhere. Any fees must be set out in the broker’s disclosure before you start.
Does commission affect the advice?
Financial advisers in New Zealand must put your interests first and follow a Code of Professional Conduct. They also have to disclose conflicts of interest, including how commission works. It’s fair to ask any broker how they manage this and why they’ve recommended a particular lender.
Why use a broker instead of going to your bank?
- Choice: a broker can compare several banks and non-bank lenders, not just one.
- Negotiation: brokers know what each lender offers, including cash contributions for new lending.
- Less paperwork: they prepare your application and deal with the lender for you.
- Fewer credit checks: applying to the right lender first helps avoid lots of enquiries on your credit file.
What to ask before you start
- How are you paid, and could I ever pay a fee?
- Which lenders do you work with?
- Will you help me again when my fixed rate ends?
Moneyplant’s disclosure sets out how we’re paid. Ask us for a copy at any time.
This article is general information only, not personalised financial advice. Talk to us about your situation.
Common questions
Can’t see your question? Get in touch. There’s no such thing as a silly question.
Does using a mortgage broker mean a worse interest rate?
No. Brokers get the same rates as the bank’s own customers, and can often negotiate a better rate or cash contribution because they know what other lenders are offering.
Can a broker help if my bank declined me?
Often, yes. Different lenders have different rules, and a broker can look for one that suits your situation, including non-bank lenders.
Do I pay anything upfront?
Not usually. If a broker charges a fee, they have to tell you in their disclosure before they give advice.
Will a broker help when my fixed rate ends?
A good broker will. At Moneyplant we check in before your fixed term ends so you can compare options.
Talk to a Papakura adviser
Leave your details and one of our mortgage advisers will call you back within one working day. No cost and no obligation.
Request a call