Compliance will "clean out" the industry, says broker

Top adviser talks about the changes facing mortgage brokers in the coming years

Compliance will "clean out" the industry, says broker

NZ Adviser talks to Auckland-based mortgage adviser Kris Pedersen from Kris Pedersen Mortgages and Insurance about developments within the adviser industry, the challenges and rewards of the job and his most memorable client experiences.

Pedersen was named a Top Adviser in our second annual Top Advisers Rankings 2018.

How do you think the mortgage broking industry has changed over the last two years?
There is a growing need for the non-bank market, with the banks tightening of their own accord and also from regulatory pressure new opportunities are continually coming into the market that brokers need to be aware of to be doing the best job by their customers.

What do you enjoy the most about your job?
The pace and the continual change. It’s not an easy industry for those who like it slow and steady, but for those who enjoy the pace, it is fantastic.

What has been the secret to your professional success? 
Put the customer’s needs first and always try and see the situation through their eyes.

What is the key to overcoming the challenges you face as a mortgage broker? 
Continually investigating new solutions and networking with similar minded individuals who are also creative in finding these solutions.

What is your best strategy for generating leads? 
We do some marketing now but didn’t really for the first 6 or so years in business, and the business just grew from word of mouth and referrals.

What was your most memorable client experience this past year? 
There are a few cases I can think of where some customers had really dug themselves a hole, and while these required a LOT OF WORK, we managed to get them out the other side. A really good way to create raving fans.

What do you think of the impending changes in the regulatory landscape? How will this shape the future of the industry? 
I’m sure there will probably be some unnecessary compliance as this tends to come with regulation, however it will also clean out a lot of advisors who probably shouldn’t be in the industry any more.

Outside of being a broker, what are your favourite hobbies? 
Sport, and socialising with family and friends.

If you were the Prime Minister for a day, what would you do? 
Look at implementing more financial advice programs into schools to improve literacy around this.

If you could offer one piece of advice to someone starting a career as a mortgage broker, what would that be? 
Get a business plan together, noting especially where you plan to get your leads from and what actually differentiates you from other advisers.