How Much Does a Mortgage Broker Cost in NZ?
Published
Written by Richard Banks · Managing Director, Orange Network
Reviewed by Chad Weber · Head of Lending
A mortgage broker in NZ usually costs you nothing. Orange Network's mortgage advice is free to you: when your loan settles, the lender pays us a commission, and that commission — who pays it and how much — has to be disclosed to you. You pay the same bank fees, legal fees, and valuation costs you would pay if you walked into the bank yourself. If a broker ever asks you for an upfront fee for a standard home loan, ask exactly what it is for, in writing, before you pay it.
How brokers get paid
Lenders pay brokers a commission because brokers bring them completed, well-prepared applications. The commission is typically a percentage of the loan amount paid at settlement, plus a smaller ongoing amount with some lenders while the loan stays in place. Commissions can be clawed back from the broker if a loan is repaid very quickly — which is one reason a good broker cares whether the loan still suits you in year two, not just on settlement day.
Does free mean biased?
It is the right question to ask. Commission rates vary a little between lenders, so ask any broker — including us — how they are paid and whether the recommendation would change if it did not pay. A licensed adviser has to act in your interests, disclose commissions, and explain why a lender was chosen. That explanation should be about approval, structure, and cost to you. Orange Network is FMA licensed (FSP665511) and compares 16+ lenders. We are not owned by a bank.
What you still pay for (broker or not)
- Your solicitor, for the purchase and mortgage documents
- A registered valuation, if the lender requires one
- Bank application or establishment fees, where a lender charges them
- A building report and LIM, if you choose to get them — you should
When a fee can be legitimate
Unusual, complex commercial or development work is sometimes charged differently, and any fee should be agreed in writing before the work starts. For a standard home loan, first home purchase, refinance, or investment property, expect no upfront broker fee. The first conversation costs nothing either — bring your numbers and find out what you can borrow before you spend anything. This is general information, not personalised financial advice.
