Expert Advisors Help Consumers Access Home Loans and Insurance Products That Suit Their Lifestyles

A Consultative Approach Aids Prospective Homebuyers

In a Nutshell: Loan providers aren’t in the business of lending money to balance the distribution of wealth in society. They seek to make money. That’s why it’s refreshing to learn of a company like NZHL that puts its clients’ well-being ahead of business profits. The company frequently consults with borrowers to help them improve their financial health and achieve their goals.

New Zealand is an island country east of Australia in the Pacific Ocean. Its natural beauty and unique composition — New Zealand is home to more than 600 islands — make it a prime spot for travelers seeking a remote destination filled with adventure and culture.

The country is known for its contributions to the arts. It has produced several international music sensations, including one of the founders of the ‘80s rock band Crowded House and singer-songwriter and pop music star Ella Marija Lani Yelich-O’Connor, also known as Lorde.

New Zealand’s rugged beauty and unique landscape make it a prime candidate for film directors and producers seeking a location with an otherworldly quality. The award-winning Western, “The Power of the Dog,” features New Zealand as a stand-in for the state of Montana. And New Zealand native Peter Jackson has shot a plethora of films in the country.

The country is also home to numerous innovative businesses. NZHL is a financial services company in New Zealand that helps consumers map out ways to pay off their mortgages faster and experience financial freedom. 

NZHL’s founders started the business in 1996 in Hamilton, New Zealand, the country’s fourth-largest city. We caught up with a spokesperson from the company to learn more about how it ensures homeowners design a plan to save money and reach their goals.

NZHL operates approximately 70 offices throughout New Zealand and serves more than 50,000 clients across the country. The company employs mortgage advisors to consult with clients and determine strategies they can follow to improve their financial positions.

New Zealand’s financial advisors can obtain qualifications in the lending and insurance arenas, so it’s not uncommon for one of NZHL’s mortgage advisors to advise clients on both their lending and insurance needs.

NZHL surveys its clients to gain insights into their perspectives on personal finance. In a recent survey, the NZHL clients indicated they feel more in control over their finances when they can access lending and insurance services from one source.

“We quite like to do things the easiest way we can here to keep things as simple as possible for our customers,” said the company’s spokesperson. “You’re starting to see more advisors in New Zealand who are helping clients with their lending and insurance needs. Offering both insurance and home loans is something that is becoming more and more important.”

Home Loans Can Support Borrowers’ Financial Goals

Homeowner’s insurance can provide financial assistance to consumers whose homes have sustained external or internal damage. Though it can be costly, homeowner’s insurance can offer relief to policyholders in times of trouble.

NZHL works with homeowners to ensure the insurance they intend to purchase for their homes will meet their needs. The company spokesperson we interviewed said they are also an NZHL customer and appreciate the company’s practice of educating its customers. 

When NZHL onboarded the company spokesperson we spoke with, one of the company’s advisors informed them that home insurance won’t fully cover a homeowner’s mortgage payments if the homeowner loses their source of income or is otherwise unable to pay their mortgage.

NZHL believes home loans should support a borrower’s overall goals. The company aids consumers in assessing how their home loans can support their efforts to eliminate debt, pay off a home loan in 10 years instead of 20, or help them save money to finance a family vacation or their child’s private school tuition.

NZHL projection graph

“There are so many different financial goals that consumers can have,” the company’s spokesperson said. “The problem is, if you don’t have the right insurance mix, then even though you may be doing your best to work toward meeting your goals, something unexpected could happen and completely derail you. So that’s kind of the purpose behind offering both home loans and insurance together.”

Some areas of New Zealand have experienced significant flooding in recent years. Natural disasters such as floods can impact the cost of living in an area as well as the price to rebuild damaged homes. NZHL’s spokesperson advises homeowners to review their insurance plans yearly to ensure they provide adequate coverage for evolving circumstances.

The company also offers other forms of protective coverage, including plans for life and health insurance. NZHL’s advisory services help consumers find plans that fit their lifestyles and help them avoid purchasing too much insurance. 

“With all the different types of insurance someone can buy, you don’t want to over-insure,” NZHL’s spokesperson said. “No one wants to pay too much for a premium for a type of insurance that they don’t even need. Our advisory service comes in and helps clients figure out how to use their money the best they can to make sure they’re covered if something happens.”

A Commitment to Bolster Consumer Financial Health

Though NZHL offers numerous insurance products, most consumers apply for a home loan with the lender before enrolling in their other products. About 50% of the company’s loan customers also purchase an insurance product from NZHL.

The company also serves customers who only purchase its insurance products and have home loans elsewhere or don’t require home financing.

NZHL serves clients ranging in age from 25 to 55, though most of the company’s clients are between 30 and 45 years of age. The company assists first-time homebuyers, but most of its home loan recipients are clients who are unhappy with their current loan provider and looking to refinance into a loan with more favorable terms.

NZHL serves customers from different professions, including government employees, nurses, teachers, and police officers. 

NZHL benefits screenshot
NZHL provides services and resources to help borrowers manage their finances.

The effects of inflation have prevented some borrowers from being able to afford home loan payments.

“Our lending requirements have gotten a little bit looser recently, but you’ll typically need a 20% deposit to secure a home loan with us,” NZHL’s spokesperson said. “We do a deep dive into how much money you have coming in compared to what you’re actually spending your money on. We take into account interest fluctuations and those sorts of things when looking into whether someone can afford their loan on an ongoing basis.”

Buying a home can be one of the most expensive purchases a consumer will ever make. NZHL offers seminars for first-time homebuyers to help them learn about the costs associated with homeownership. The company also conducts seminars to promote steps consumers can take to improve their financial health.

NZHL offers a debt-monitoring tool to help borrowers understand the length of time it can take them to pay off their loans under varying circumstances. 

Not everyone is a prime candidate for NZHL’s home loans. The company’s spokesperson said NZHL’s advisors will meet with prospective borrowers who don’t qualify for one of the company’s loans and build a plan to position them for a loan in the future.

“Someone who goes out a lot and spends a lot of money on food, drinks, and entertainment may have to cut back on those things to be able to afford a loan,” NZHL’s spokesperson said. “What we do is get them ready for their mortgage by getting them to start to prove what they’re willing to give up to change and make things work.”

Helping Consumers Prepare for the Unexpected

Anyone who’s applied for a mortgage knows the process is more involved than just walking into a bank and opening an account. Mortgage applications require a significant amount of paperwork and help provide information lenders need to make informed decisions about a borrower’s ability to repay a home loan.

NZHL’s advisors guide prospective borrowers through the loan application process. Once a borrower secures a loan, NZHL mortgage advisors maintain contact with the client to provide them with ongoing advisory services. 

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Borrowers can use NZHL’s calculators to understand how different loan terms and interest rates can impact their repayments.

Mortgage advisors meet with borrowers throughout the first year of their loan and hold annual meetings with them for the life of their loan to determine if their loan is meeting their overarching financial needs.

“It’s really just about being flexible and figuring out if a customer’s loan is working in their favor,” NZHL’s spokesperson said. “If someone has an unexpected expense or loses their job, then they can go to their advisor and work out how they’re going to get through that period rather than just dealing with the stress of making more payments. We talk about financial freedom a lot because we want to help our clients build toward a better future.”

NZHL’s advisors collaborate with clients to determine the best financial path for each borrower. The company provides calculators to help borrowers gauge how different term lengths and interest rates can affect their loan repayment plans. NZHL’s spokesperson said the company’s strategies help its clients collectively save millions of dollars each year.

“When our clients save money, they can use it for what matters most to them,” NZHL’s spokesperson said. “That’s really what we’re all about. We’re a very purpose-driven company.”