Adviser vs Broker – what’s the difference (or is there any)?

Yes… but also no.

People still use both terms, mostly because “mortgage broker” was the common label for years. These days the technical meaning has shifted, but the old wording is still hanging around.

Where "Broker" came from

“Mortgage broker” is an older label, and a misleading one, because we have never actually held or traded clients’ money like a traditional broker. Historically the job was viewed as a simple transaction: find you a lender, get the deal across the line, then move on. The focus was almost entirely on “who will give you the money?” rather than the advice behind it.

What changed in 2021

In March 2021, new regulation was introduced under the Financial Services Legislation Amendment Act 2019. This moved the industry toward a regulated financial advice model, instead of that old purely transactional “broker” model. In normal human terms: it’s no longer just “Can I get you a loan?” It’s “Is this the right loan for you, and do you understand how it works?”

With that came extra responsibilities. Advisers now have to keep proper records, follow strict compliance rules, and be upfront with clients about the pros, cons, costs, risks, and limits of the lending being recommended. It’s not just a sales conversation anymore — it’s advice.

What that meant for the industry

Those changes shook things up. Some people left the industry, and it’s harder to just wake up one day and call yourself a broker. On the other hand, it’s been hugely positive for clients. You now have more protection, clearer information, and better visibility on what you’re actually signing up for.

So why do I still hear “broker”?

Because habits stick. “Broker” is what a lot of Kiwis still say, and the basic idea of “help me find the right lender” is still part of what we do. But the role today is bigger than that. It’s also about structure, long-term fit, and making sure the lending still suits you over time — not just on day one.

That’s why you’ll hear “mortgage adviser” more now. It lines up better with what the job actually is today.

What this means for you

If you’re about to buy, thinking about using equity, or just not sure if your current lending is still set up the right way, you don’t have to guess. Talk to a mortgage adviser and get someone who’s actually on your side, legally and practically — not just trying to place a loan and disappear.

If you want to have that chat, reach out. We’d be happy to look at where you’re at now and walk you through your options in plain language, no pressure.