How to Apply for a Mortgage Broker License in NZ (The COMPLETE Guide)
Staff Writer
| Last Updated: September 2023 - How to apply for a mortgage broker license in New Zealand?
- STEP 1: Meet the eligibility requirements.
- STEP 2: Obtain a Financial Advice Provider (FAP) license.
- STEP 3: Join a dispute resolution scheme (DRS).
- STEP 4: Register on the Financial Service Providers Register (FSPR).
- FAQs about applying for a mortgage broker license in New Zealand
Interested in a career as a mortgage broker in New Zealand? This guide outlines the step-by-step process to obtain your license.
From meeting qualifications to navigating the application, let’s dive into the essential steps to kickstart your journey as a licensed mortgage broker in New Zealand.
How to apply for a mortgage broker license in New Zealand?
To apply for a mortgage broker license in New Zealand, you need to get a Financial Advice Provider (FAP) license first, then join a Dispute Resolution Scheme (DRS) to start providing mortgage brokerage services.
However, the process is not as simple or instantaneous as it may seem. Several steps must be taken to ensure you are legally allowed to operate your own mortgage brokerage business.
And once you have done these things, you are legally allowed to provide mortgage broking services in New Zealand.
Don’t worry, though! We will guide you through each step.
| Difficulty | Moderate ●●●○○ |
| Number of steps | 5 |
| Time to perform fix | Weeks to a few months |
| Things you need | • Access to the FMA licensing portal • Application fee for the Financial Advice Provider (FAP) license • RealMe login |
STEP 1: Meet the eligibility requirements.
Before you can apply for a Financial Advice Provider (FAP) license and become a licensed mortgage broker in New Zealand, you must meet certain eligibility requirements.
Here’s what you need to fulfill:
- Be a New Zealand citizen or resident: To obtain the FAP license, you must be either a New Zealand citizen or a resident.
- Have a clean criminal record: It’s essential to have a clean criminal record. The Financial Markets Authority (FMA) will conduct a character test that considers your criminal history, financial history, and other relevant factors.
The FMA is responsible for licensing mortgage brokers in New Zealand through the FAP license. They will automatically conduct a character test when you apply for it.
- Pass a character test: The FMA will assess your suitability as a financial adviser based on the character test. They will review your criminal and financial history and consider other relevant factors.
- Obtain a Financial Adviser Qualification: You must complete an approved financial adviser qualification by the FMA. The accepted qualifications include:
- New Zealand Certificate in Financial Services (Level 5) (Residential Property Lending)
- New Zealand Diploma in Financial Services (Level 6) (Residential Property Lending)
- Graduate Diploma in Financial Services (Level 7) (Residential Property Lending)
To obtain this qualification, follow these steps:
- Choose an Approved Provider: Look for NZQA Registered Training Organisations (RTOs) or private training providers that offer the qualifications.
- Complete the Modules: Take the required modules covering financial markets, financial products, financial advice, and residential property lending.
- Pass the Assessment: Successfully pass an assessment testing your knowledge and understanding of the material covered in the modules.
By meeting these eligibility requirements and obtaining the necessary qualifications, you will be a few steps closer to becoming a licensed mortgage broker in New Zealand.
STEP 2: Obtain a Financial Advice Provider (FAP) license.
Once you have ensured that you meet the eligibility requirements for becoming a licensed mortgage broker in New Zealand, you will be instructed to obtain a Financial Advice Provider (FAP) license.
Here’s how to do it:
- Determine Your License Class: Before applying, you must decide whether you want a Class 1, Class 2, or Class 3 FAP license. Each class has specific requirements, so it’s essential to understand which one is suitable for your business.
Read more about the 3 licence classes or, Explore your licence options to see which licence class is right for you.
- Access the FMA Licensing Portal: Once you have selected the license class you wish to apply for, it’s time to proceed. Head over to the FMA licensing portal and create an account or log in to initiate the application process.
- Complete the Application: Once logged in, you’ll be taken to an online application page. Provide all the necessary information and answers to the knowledge questions. Ensure accuracy and completeness in your application to avoid delays.
As part of the application process, you will need to answer a series of questions related to your knowledge and understanding of the financial markets and financial advice.
- Pay the Application Fee: After completing the application, you will be required to pay the application fee to finalize your submission.
- Submit Your Application: Click on the “Submit” button to send your application to the FMA for review.
- Assessment and Decision: The FMA will assess your application, considering all the provided information, qualifications, and knowledge assessment. After the evaluation process, the FMA will make a decision regarding your FAP license application.
If your application is approved, congratulations! You will be granted a FAP license, officially allowing you to operate as a licensed mortgage broker in New Zealand.
However, there are additional steps that you need to take before you can start providing mortgage brokerage services.
STEP 3: Join a dispute resolution scheme (DRS).
In order to meet the FMA’s requirements and start providing mortgage brokerage services, it is mandatory for all financial advisers to become members of a Dispute Resolution Scheme (DRS).
A DRS is a service designed to assist consumers in resolving disputes with financial advisers. In case a consumer has a dispute with a financial adviser, they have the option to refer the matter to the DRS.
In New Zealand, there are two recognized DRSs:
To join FSCL, follow these steps:
Click here to access their online application portal.
Complete the Application Form: Fill out the application form with accurate and complete information about yourself and your business (if applicable).
Submit the Application: Once you have filled out the application form, click on the “Submit” button.
Contact FSCL for Queries: If you have any questions or queries regarding the membership process, don’t hesitate to get in touch with FSCL. You can email them at [email protected] or call 0800 347 257 for assistance.
To become a member of IFSO, follow these simple steps:
Click here to access their online application portal.
Complete the Application Form: Fill out the application form with accurate and comprehensive information about yourself and your business (if applicable).
Submit the Application: After completing the application form, click on the “Submit” button to send your application to IFSO.
Contact IFSO for Queries: If you have any questions or need further assistance, reach out to the Participant team by sending an email to [email protected] or call them at 0800 888 202.
As a licensed FAP, you can choose to join either of these DRSs.
STEP 4: Register on the Financial Service Providers Register (FSPR).
Next on the list is to register on the Financial Service Providers Register (FSPR). The FSPR is a publicly accessible register that includes information about all financial service providers operating in New Zealand, including licensed Financial Advice Provider (FAP).
Here’s a guide on how to complete your registration on the FSPR:
- Go to the Financial Service Providers Register (FSPR).
- Find the “Register an FSP” Tab: Look for the “Register an FSP” tab on the FSPR website’s main page and click on it.
- Log In or Create a RealMe Login: If you already have an account, log in using your credentials. If not, click the “Log in” button and follow the instructions to create a RealMe login, which will serve as your secure identity for government services.
- Click on “Register Now”: Once you have logged in, click on the “Register now” button to initiate the registration process.
- Fill Out the Registration Form: You will be directed to a page where you can fill out your registration form. Provide the required information accurately, including:
- Your name
- Your business name (if applicable)
- Your Financial Advice Provider (FAP) license number
- Your contact details
- Your Dispute Resolution Scheme (DRS) membership number
- Pay the Registration Fee: As part of the registration process, you will need to pay the registration fee. The fee amount may vary.
- Submit Your Application: Once you have completed all the necessary information and made the payment, click on the “Submit” button to finalize your application for registration.
The FMA will typically take 2-3 weeks to process your application. Once your application is approved, you will be issued an FSPR number. You will also be able to download your registration certificate from the FMA website.
Once you’ve completed all the necessary steps to become a licensed mortgage broker in New Zealand and have your FAP license, DRS membership, and FSPR registration, you can confidently start your own mortgage brokerage.
