How to Choose the Right Financial Advisor for You

Securing a mortgage and buying your first home is often considered to be one of the most stressful events in a person’s life.

I know first-hand from listening to new clients just how frustrating it can be, going back and forth between different banks to compare rates, incentives and terms, and figuring out how you can afford the repayments. It’s complicated.

However, with the right financial advisor or mortgage broker in Wellington, or wherever you live, this process can become straightforward.

Having an expert by your side through the big financial milestones in your life saves you sleepless nights and precious time that could otherwise be spent with your family.

Here are our top tips for how to choose the right financial advisor.

What does a financial advisor or mortgage do?

A good financial advisor takes the hard work off your hands by working directly with banks to negotiate the best deal for you.

Just like a matchmaker, by understanding your unique situation they’ll be able to pair you up with a suitable bank or lender. Using their professional relationships with various banks and lenders, they’ll know exactly which ones suit your needs and are less likely to reject you.

Once you’ve discussed a shortlist of loan options with your advisor, they’ll put in an application with your first choice of bank, on your behalf. They also create a tailored mortgage plan based on your needs.

Beyond mortgages, advisors may also offer money planning, property investment and refinancing services.

Further benefits include ongoing monitoring of your investments, reports and recommendations, regular in-person review meetings, and making approved changes to your portfolio.

Know your finance goals

Financial advisors come in different shapes and sizes. Some specialise in mortgages, for example, while others, like us, provide a range of financial services.

So before you approach anyone ensure you identify your short and long-term finance goals.

Maybe you dream of retiring early, building an investment portfolio, or taking control of your debt?

Whatever your goals or life stage, find an advisor with particular skills and services that align with your vision of financial security. Now, and in the future.

Work within your budget

Each financial advisor will have their own payment structure including fees, commission, or a combination of the two, depending on the services you require.

It’s important to evaluate the various payment methods, know what your preference is, and choose an appropriate advisor.

Generally speaking, most financial and mortgage brokers in Wellington and New Zealand work on commission which benefits you as they don’t usually charge an upfront fee. The commission is around 0.25% – 1%.

At Craig Pope, in most cases, we arrange your lending and earn a commission at the point-of-sale, paid to us by the bank or lender, though occasionally fees can apply. You can learn more about our payment structure here.

Where to find the best financial advisors

Your first port of call should be Financial Advice New Zealand.

The website features a directory of professional, qualified finance advisors working across all areas of financial advice.

Failing that, you can do what everyone does to search for information these days: Google it! Check out their Google reviews to learn about the quality of their services and how trustworthy they are.

One important thing to note: rogue advisors unfortunately do exist.

To avoid being scammed, ensure you do your homework. Ask trusted friends or family for a referral, inquire about their credentials, and look at online reviews or testimonials.

Ask the important questions

Now you’ve figured out your goals, budget, and made a shortlist of advisors you want to approach, the final thing left to do is meet with them.

It’s standard practice to shop around before you make a decision.

Here are some questions you should ask them at an initial meeting to evaluate if they’re a good fit:

• What are the risks of this investment?
• How and what do I pay?
• What information will I receive about my investments?
• How do I get my money back?
• How do I know that your recommendations are in my interest?

The New Zealand Financial Markets Authority (FMA) has the full list on their website.

I hope these helpful tips make choosing a financial advisor as smooth as possible and the prospect of securing a mortgage and your dream home less daunting too.

With a finance advisor or mortgage broker at your side, you’ll have the confidence and support you need to navigate the complex financial landscape and secure a brighter financial future. Don’t hesitate to reach out and start the conversation with a trusted advisor today.