Banks tip deeper rate cuts as economy stumbles
The Finance and Mortgage Advisers Association of New Zealand (FAMNZ) is urging brokers to take a proactive role as economic uncertainty weighs on investor and homeowner confidence.
With GDP contracting 0.9% in the June quarter and interest rate cuts predicted ahead, FAMNZ managing director Peter White (pictured) said strategic advice is more important than ever.
“Advisers should be proactive, and right now be contacting their customers to find out how they are travelling, and discuss their needs and ways to assist them,” White said.
He warned that advisers cannot afford to wait for clients to make the first move, urging the industry to “get on the front foot through what is a turbulent economic period for many.”
Investor confidence fell to net 1% in Q2 2025, the lowest since 2020, ASB’s survey showed. Economist Chris Tennent-Brown said it’s a vital time for property owners to review long-term strategies with advisers, with Aucklanders more upbeat than the rest of the country.
Weaker GDP has led Westpac, ASB and Kiwibank to forecast a 50bps OCR cut in October, but Prime Minister Christopher Luxon said the “frustrating” figures don’t derail his positive 2025 outlook.
Growing the adviser market share
White noted that mortgage advisers currently account for around 50% of the New Zealand market but stressed that this share should expand.
“A higher market share for mortgage advisers brings massive benefits to New Zealand as it increases competition while providing more options and greater expertise to consumers,” he said. “But this won’t happen with a passive approach.”
According to White, many consumers remain unaware of the full range of options available, making the adviser’s role vital in delivering solutions.
Building public profile and trust
FAMNZ is working to raise awareness of advisers nationwide.
“As the only industry association exclusively for finance and mortgage advisers, FAMNZ is not only advocating for our industry with regulators, government and others, but we are raising the public profile of advisers through the media,” White said.
He emphasised that advisers must support these efforts by delivering high standards of customer service.
“Remember that advisers act in the customer’s best interests according to their individual circumstances, something no lender is able to do.”
Customer care as the foundation
White urged advisers to treat today’s challenges as an opportunity to strengthen client relationships.
“Be proactive, go the extra mile and show consumers a level of care that will build trust,” he said. “Not only will you have a customer for life, but every customer has friends and family, and these referrals build successful broking businesses.”
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