APIA Blog

RSS Feed

Ryan Smuts: What to expect when you use a mortgage broker?

Monday, October 15, 2018

 

How do you know a broker is going to give you the best advice, and why is it worthwhile going down this path as opposed to going to your own bank?

Well, this is a timely topic and definitely is a valid question. Typically the barriers to entry in our market are relatively low, and in terms of qualifications, not too much has to be done to be giving advice in the mortgage industry. That being said, there are definitely a lot of changes happening within our industry being driven by the FMA and MBIE – more specifically the Financial Advice Code Working Group.

The new financial advice regime is aimed at making quality financial advice more accessible to New Zealanders. The Amendment Bill (to the Financial Advisers Act 2008) is aimed at ensuring a duty of care is met when providing financial services, and ensuring that the client’s interests are always put first. The Code of Conduct ensures that ignorance (lack of competence) doesn’t get in the way of the client’s needs being prioritized by the financial adviser, and it does this by ensuring that all financial advisers meet a minimum level of competence and skill. It is expected that by mid-2019 the Code of Conduct and regulations are to be finalised. Once this is all passed/approved it is likely that this regime will come into force by Q2 2020, at which point there is a 2-year transitional period where minimum standards must be met, and finally, by mid-2022 all financial advisers must be fully licensed.

So what does this mean for you as a potential client? Well, really in short it means that there are more regulations being put in place ensuring that those who present themselves as financial advisers are in fact adequately qualified to be providing advice to you and are always putting your interests first. This protects you because the level of advice as a whole should lift, along with the understanding of products in the marketplace across several brokers. Independent advice is also beneficial because when approaching a bank directly not only do all bankers not need to meet these requirements but also note that the banker only has their products to offer – whereas a broker would have access to the whole market.


 


ABOUT THE AUTHOR

Ryan Smuts 

Ryan is a Key Accounts Manager at Kris Pedersen Mortgages and Insurance. Ryan can be reached on 021 193 9333 or ryan@krispedersen.co.nz

 

 

 

 

 

Recent Posts


Tags

buyer's agent income Must know data security principal and interest election 2017 capital gain short-term rental wealth creation development property value return mortgage tenancy issues twg report property maintenance government smoke alarm wins first home buying market rent market property management rent arrears nzpif cat positive cash flow education trademe LIM bad tenant debt enforcement meth contamination finance investor insurance rta reform Property (Relationships) Act trespass initio tax Jeff Bezos off the plan holiday house Sponsored post building interest rates lvr subdivision minor dwelling skill shortage housing bubble productivity unitary plan buying ocr bond ird equity financial advisers act Kris Pedersen Mortgages and Insurance structure rent How to inspection p lab buying rules reserve bank Guest blog ventilation banking warm up new zealand management warren buffett letting fee business Landlording beginner investor cash-flow legal partners interest only gluckman report Investor story rent increase TCIT house prices negotiation asbestos Holler HSWA Standards New Zealand Question and answer relationship tenancy services clnz rta property cycle property HHGA DTI letting tenant privacy auckland council RTAA 2019 CCC sublease rental wof auckland worksafe personal growth landlord boarding house watercare rental market Editor's Choice HHS bond form Q&A Investment tip extractor fan sale and purchas maintenance water bill robert kiyosaki damage anz investment strategy fixed-term tenancy renovation advice ring-fencing sale and purchase heater meth housing affordability winz insulation scotney williams Tribunal case study shower dome CoreLogic Must knows cgt trust heating ask an expert Market report airbnb parry v inglis speculator television tenancy tribunal

Archive

Introducing Our Partners
Principal Sponsor - Kris Pedersen Mortgages & Insurance logo Gold Sponsor - Barfoot & Thompson logo Gold Sponsor - CoreLogic logo Property Apprentice logo The Insulation Warehouse logo The Renovation Team logo The New Zealand Property Investors' Federation logo
09 360 2376
info@apia.org.nz

The Tenancy Practice Service and TPS Credit Control work closely with the Auckland Property Investors' Association. Our vision of bringing helpful resources, documents and high quality services to Auckland Property Investors and Property Managers is shared by APIA, so its a partnership that works well. 

The Auckland Property Investors' Association is a great organisation for those who want access to advice and information from a range of industry experts and partners. 



Mathieu Holt- Managing Director, The Tenancy Practice Service & TPS Credit Control
Through the Association I found the channels and methods to fund the purchase of property I never dreamed about. Grant Brown

All round it has been one of those things Neil and I felt was really worthwhile belonging to. We have learned so much it has just built our confidence in what we are doing.

Janice Bieleski
I read two articles in the monthly magazine that saved me over $5,000. That is my membership fee for the next 26 years and I am sure I will learn a whole lot more! John Duncan
Fantastic organisation. The networking opportunities are brilliant and provide us with information and opportunities that cannot be obtained anywhere else. We learn something new at every meeting and we've been in this game for nearly 20 years. Pauline and Gyanen Kumar

I find the information obtained from various APIA meetings very useful in guiding my own property investment and rental management.  I also enjoy the networking opportunities with like-minded investors.  I am inspired by other investors’ success and find the more experiences and knowledge that I share with others, the more confident I become.  

Thanks to all APIA event organizers and administrators for your brilliant work. 

Stella Shao

I like talking to people and learning from their experience because it gives me the confidence to invest well. I think it is a knowledge thing. I now know I am doing things the right way.

Stephen Weatherall

My APIA membership has become a total success.

Every time I attend a monthly or regional meeting I come away with so many useful and positive tips that have added value to my property investments and management.

Not only that, the website is a great place for practical advice and useful information. It has now evolved into an important resource for my business.

Talk about value for money! The discounts I have been getting at Bunnings when I present my APIA membership card have more than paid for my annual subscription!

Tim Duffett, Plan A Investments Limited