In a market shaped by uncertainty, how are advisers protecting client cashflow and outcomes?
After years of economic uncertainty, mortgage advisers in 2026 are becoming more experienced at operating in a market where interest rate volatility is the norm rather than the exception.
And while borrowers remain highly sensitive to pricing, advisers say the conversation has shifted well beyond chasing the lowest rate. Instead, the focus is now on strategic structuring, proactive engagement, and helping clients build resilience against forces largely outside New Zealand’s control.
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Raj Metha, pictured above left, a financial adviser at KHL Finance, says continually fluctuating interest rates have changed the value proposition advisers bring to the table.
“The focus has moved from simply securing competitive pricing to delivering tactical loan structuring.”
And this has seen advisers placing more emphasis on splitting lending between fixed and floating portions, staggering fixed-term expiries, and incorporating tools such as offset and revolving credit facilities. Metha says it’s an approach that provides flexibility and resilience in a changing market.
“Because when loans are structured correctly, it can deliver significant long-term savings - often tens of thousands of dollars - far beyond what can be achieved through marginal rate differences alone.”
For Mortgage Market adviser Andrew Perry, above right, rate volatility has also changed the tone of advice conversations, particularly as borrowers look for certainty in an environment where none exists.
“It’s forced us to be more honest with clients about uncertainty and what drives it,” Perry says.
“People think the RBNZ sets interest rates and that’s the end of the story. In reality New Zealand is a small player in a big financial world.”
Perry notes that wholesale rates are heavily influenced by global bond markets, geopolitical instability, and unexpected economic shocks.
“In March when the US started bombing Iran, crude oil jumped 15% and fuel prices spiked overnight,” he says.
“That flows directly through to inflation expectations globally, which flows through to swap rates, which flows into your mortgage rate in Wellington.”
So for advisers, the message is clear. Their role is no longer about forecasting where rates will land, but preparing clients for whatever comes next.
“Our job isn’t about crystal ball gazing,” Perry says. “It’s about structuring lending to make sure clients are prepared for whatever comes next, whether rates go up or down.”
Borrowers are seeking security, not predictions
Both advisers report that uncertainty remains the dominant theme in borrower conversations and Metha says many clients are worried about unexpected repayment increases, particularly in relation to OCR movements.
“The biggest concern I’m hearing is around interest rates and OCR movements, particularly the fear of repayments increasing without a lot of warning,” he says.
To manage this, Metha has adopted a more structured approach to affordability testing. He stress-tests repayments at higher interest rates and encourages clients to build buffers wherever possible.
“I design loan structures that provide flexibility - whether through cash reserves, offset accounts, or staged fixed terms,” he says. “My goal is to ensure clients don’t just qualify for a loan, but that they feel financially secure and in control.”
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Perry adds that one of the biggest issues for borrowers right now is equity, especially for those who purchased at peak pricing in 2021 or 2022.
“People who bought five to six years ago have seen their property values fall below what they paid and want to know what their options are.”
And for a lot of first home buyers, the expectation of quickly reaching 20% equity, and accessing sharper pricing, has not eventuated. Perry says that has shifted the advice conversation toward principal repayment strategies and reducing exposure to rate shocks while clients wait for the market to recover.
Fixed versus floating: structure is becoming the differentiator
With rate volatility persisting, advisers are increasingly moving away from one-size-fits-all recommendations. Instead, they are tailoring loan structures to suit individual risk profiles, income stability and long-term plans.
Perry says he has been more willing to push back when clients focus too heavily on short-term pricing.
“I had a client recently who just stretched to buy a dream home. When it came time to structure, his first instinct was to fix for one or two years because the rate was slightly lower,” he says.
Instead, Perry encouraged a longer-term approach to protect the client’s cashflow from future refix shocks.
“We ended up splitting over longer terms between three and five years,” he says. “Now he’s sorted with no nasty surprises at refix time.”
The situation highlights a key trend emerging in 2026, where advisers are increasingly positioning themselves as risk managers, not just rate negotiators.
“Trying to time the bottom of the market isn’t a strategy,” Perry says. “Understanding the client’s situation and building a structure around their life, that’s actually the job.”
Engagement is shifting earlier as borrower behaviour changes
While borrowers previously delayed refixing decisions in the hope rates would continue falling, Perry says that behaviour has changed.
“In 2024 and 2025 we saw clients waiting until the last minute to refix while rates were coming down,” he says. “Now that’s flipped. Clients are engaging much earlier because there’s an expectation that rates might be higher if they wait.”
The silver lining is that many borrowers rolling off higher rates now have more flexibility in how they manage their repayments, whether that means increasing payments to reduce debt faster or easing payments to improve cashflow.
Perry adds that refinancing activity remains strong, with banks continuing to compete aggressively for borrowers with more than 20% equity.
“Our business has been around for almost ten years now, so we have a mature client book, which means we’re doing a lot more refinance work than ever before,” he says.
Proactive communication is becoming a survival strategy
In a market where rate movements are frequent and borrower confidence can shift quickly, both advisers emphasise the importance of regular, proactive communication.
“Client confidence is built through clear, proactive, and consistent communication,” Metha says. He says he stays ahead of OCR changes and lender policy updates, sharing insights early and translating market movements into actionable advice.
“By translating complex information into clear, actionable advice, clients are able to make informed decisions with confidence rather than reacting to uncertainty.”
For Perry, communication is not just about good service, but is about the future of adviser business models.
“The adviser channel has a reputation for being transactional, get the deal done, collect the commission, move on,” he says. “But I feel like that model is dying, and it should.”
However, Perry acknowledges a commercial tension - the cost of servicing existing clients does not always align with refix remuneration, which can incentivise advisers to prioritise new business.
His solution has been to deepen client relationships by broadening service offerings such as KiwiSaver and risk insurance, and developing newsletters and regular touchpoints.
“We’re building out a client newsletter and regular touchpoints specifically because retention and referral is where the long-term value sits.”
Technology and data are changing the adviser toolkit
Both advisers say technology is becoming central to staying competitive in a volatile market. Perry says AI and emerging open banking tools such as Akahu and AffordX are helping advisers gain clearer visibility of client cashflow.
“We’re building a framework that gives clients a complete picture of where their money goes, not just the mortgage but their entire financial position,” he says.
And for Metha, technology and AI will play a defining role in the next evolution of the industry.
“The future lies in combining expert human judgement with smart technology, enabling advisers to provide confident, data-driven guidance in any market condition.”
The adviser of the future
If rate volatility continues, advisers believe those in the industry will need to keep shifting away from transactional activity and further into strategic financial guidance, where long-term value will be found in structure, education and deeper relationships, not in trying to outguess the market.
As Perry puts it,
“Clients need someone who can help them navigate volatility, not just process a refix.”
