When You Should NOT Use a Mortgage Adviser (Yes, Really)

Shane Passfield-Bagley
Jan 22
5 min read

Updated: 3 days ago

If you landed here expecting a sales pitch, you might be disappointed.

Sometimes, the best mortgage advice is: don’t use a mortgage adviser.

That might sound strange coming from someone in the industry, but it’s true. The key is knowing when going direct makes sense, and when it quietly costs you options, flexibility, or time.

This article is written for everyday Kiwis who want a clear, no-jargon breakdown.

Understanding Mortgage Advisers

A mortgage adviser is meant to be your “translator and strategist” between you and lenders.

In a good process, they:

Compare lending options across multiple lenders (not just one bank).
Explain what matters and what doesn’t (rates, fees, structure, policy).
Package your application so it gets assessed smoothly.
Recommend a loan structure that fits your life, not just today’s rate.
Do the admin and follow-ups that most people underestimate.

But that doesn’t mean everyone needs one.

When It Doesn’t Make Sense to Use a Mortgage Adviser

1) You Have a Private Banking Relationship

If you’re with private banking (usually those with high net-worth), you often get relationship-based pricing and service that can be hard to replicate elsewhere. The banker has discretion, and the bank wants to keep you.

In those cases, your best move might be to lean into that relationship.

Watch out: private banking can still be a “single-lender lens.” You might be getting a good deal, but you may not know whether it’s the best fit overall.

2) Your Portfolio is Basically Commercial Lending

Once a portfolio grows large enough, lending can be treated more like commercial than residential.

That can change:

How deals are priced.
How servicing is assessed.
Which teams handle it.
What security and covenants might be involved.

A typical home-loan adviser may not be the best fit here. You might need someone who works in or alongside commercial channels.

3) You’re a Farmer and Your Lending Sits with Agri Specialists

Many farmers are best served by a bank’s agri team because rural lending often has its own framework, seasonality, security types, and risk models.

If you’re fully in that space, going direct can be cleaner due to the numerous nuances around farming businesses, liabilities, and income.

4) You’re Bank Staff with Staff Benefits and Inside Pathways

This is one of the big ones.

If you’re a bank employee, you might have:

Staff rates or discounts.
Easier access to decision-makers.
Smoother internal processes.

So yes, going direct can make a lot of sense.

But this is also where people sometimes miss a trick.

5) You Genuinely Enjoy Doing All the Research Yourself

Some people love the detail. They want to compare rates, read policy, run scenarios, and fully own the decision.

That’s not a bad thing. It’s often a strength.

Still, DIY does not automatically equal the best outcome, especially when lender policy and credit appetite change in real time.

The Two Groups Who Think They Don’t Need an Adviser

Let’s talk about the last two groups: bank staff and DIY researchers.

Even with insider knowledge or strong analysis skills, there are two common blind spots.

Blind Spot 1: “I Know My Bank” is Not the Same as “I Know the Market”

Knowing one lender well does not automatically give you visibility across:

Different banks’ current appetite (who is tight vs flexible right now).
How different lenders treat your income type.
Acceptable property types and lending policy nuances.
Non-bank options when a bank says no, or when speed matters.

Even very capable borrowers can end up negotiating hard with the wrong lender for their situation.

Blind Spot 2: Structure Often Matters More Than the Headline Rate

Most people focus on “what rate can I get?”

The bigger long-term wins often come from:

How you split fixed terms.
Whether an offset or revolving credit facility suits your cash flow.
Keeping flexibility for renovations, kids, career shifts, or investing.
Aligning the structure with risk tolerance, not just short-term savings.

DIY borrowers often can do this, but many don’t realise how many structuring options exist until they see them.

What Does a Good Adviser Add?

Not magic. Not secret discounts.

It’s usually these practical things:

Market coverage: understanding multiple lenders’ real-world behaviour, not just their advertised policy.
Application packaging: presenting your situation in the way credit teams assess it.
Structure strategy: building a loan that works with your plans, not just today’s rate table.
Reality checks: catching hidden issues early (deposit sources, expenses, lending caps, property types).
Speed and momentum: avoiding delays, rework, and missing deadlines in conditional periods.

In other words, even if you’re hands-on, an adviser can be a specialist on your team, not someone who replaces your involvement.

A Simple Decision Test: Should You Use an Adviser or Go Direct?

Here’s a quick self-check.

You may be fine going direct if most of these are true:

You have a strong, proven relationship with a single lender (private banking or specialist team).
Your situation is straightforward (income, deposit, property, timeline).
You’re confident structuring the loan, not just picking a rate.
You have time and patience for back-and-forth with the bank (or multiple banks).

You’ll likely benefit from an adviser if any of these apply:

You want to compare multiple lenders properly.
You’re self-employed, contracting, or have variable income.
You want help with structure (offset, revolving credit, split terms).
You’re tight on time, deadlines, or conditions.
You want a second set of eyes to stress-test assumptions.
You’ve been told “no” and want alternative pathways.

If You Do Go Direct, Avoid These Common Traps

If you choose to DIY, here are a few things to watch:

Comparing only headline rates while ignoring fees, cash contributions, and flexibility.
Locking everything into one fixed term without thinking about future changes.
Underestimating bank turnaround times and the volume of documents required.
Assuming pre-approval equals approval (it often has conditions and expiry risks).
Not knowing which details matter to credit until it’s too late.

DIY can work brilliantly. Just make sure you’re comparing the right things.

The Honest Takeaway

There are genuine cases where a mortgage adviser isn’t necessary.

But for many Kiwis, the value isn’t “someone else to talk to a bank.”

It’s market coverage, structure strategy, and clean execution.

If you’re a DIY person, you don’t have to choose between control and support. You can keep control and still have someone in your corner who lives and breathes lender policy every day.

Want to Turn This Into a Practical Decision?

If you’d like, we can help you figure out whether going direct or using an adviser makes sense for your situation, based on your goals, timeline, and complexity.

This article is general information only and isn’t personalised financial advice. Lender criteria can change and approvals depend on individual circumstances.