Commission, Not a Fee From You
Most mortgage advisers in NZ are paid by commission from the lender, not a fee from you. The primary payment is an upfront commission when your mortgage settles, typically 0.50%–0.85% of the loan value. Some lenders also pay an ongoing trail commission, often around 0.15% per year on the remaining balance.
So yes, the service genuinely is free to you in most cases — the cost is built into how lenders compensate advisers for bringing them business, not charged on top of your loan.
Upfront commission typically runs 0.50%–0.85% of your loan value, paid by the lender when your mortgage settles.
Upfront Commission
Trail Commission
Understanding Clawback
This is the part worth asking about upfront.
What clawback means
If you refinance or repay within roughly 12–24 months, the lender may reclaim some or all of the commission from your broker.
Why it exists
It discourages advisers from recommending frequent refinancing purely to earn repeat commissions.
Your right to know
Your adviser must disclose clawback terms upfront as part of their standard obligations to you.
Quick Summary
- Paid by the lender, not you — typically 0.50%–0.85% upfront commission.
- Some also earn trail commission of around 0.15% per year.
- Clawback can apply if you refinance within 12–24 months — ask upfront.