How can advisers diagnose financial pressure early, prescribe a more effective lending strategy and keep clients on track for 2027 and beyond?
For many years, the fixed-rate expiry has been the natural trigger for advisers to reconnect with existing clients. But according to Jeff Kerwin, founder and director of Nest Home Loans in Hamilton, a mortgage health check needs to involve much more than comparing rates or choosing a new fixed term.
“I think this is an area of customer service that has been badly neglected by advisers – generally speaking and with the odd exception of course.
“However, here in 2026 with the new FAP framework, the industry, regulators, and consumers want more than a simple refix from advisers.
“So there is a growing demand for more in-depth and personalised financial advice, thus, leading towards more of a ‘health check’ or ‘financial WOF’ with clients.”
Looking beyond the interest rate
Izaz Hussein, Founder and Director of SWIFT Mortgages, says a mortgage should not be treated as something you ‘set and forget’ until the fixed rate expires.
“Life, income, families, interest rates, and goals all change over time. This means the mortgage structure that worked two or three years ago may not be the right one today.”
He says a proper review should cover repayments, loan structure, fixed and floating portions, offset or revolving credit opportunities, other debts, future property plans and whether the existing lender remains appropriate.
Importantly, the outcome does not always need to be a new product, structure or lender.
“Sometimes, after doing all that work, my advice might simply be to stay exactly where you are, which is still valuable guidance. Being an adviser is not about constantly moving a mortgage to create a transaction – it’s about helping families make better financial decisions.”
Hussein also believes financial protection should form part of the discussion, including whether a client has appropriate insurance if illness, injury or another unexpected event affects their ability to meet their commitments.
Letting clients’ goals lead the review
For Kerwin, an effective health check begins with understanding what the client is working towards.
“We record our customer’s goals into our CRM, because their financial world revolves around their goals/objectives. Some may be planning to have children, get married or buy a rental.
“By understanding what goals the client wants to achieve, my advice can be centred around that – as I can assess whether their current mortgage remains suitable.
“If an investor wants $100,000 passive income from rental property when they retire, it’s much easier to plan their mortgages and journey if we know this.”
Hussein takes a similar approach to preparing clients for 2027 and beyond.
“Rather than trying to predict interest rates, we should ask clients where they want to be in two, five, and ten years.
“That means discussing debt reduction, wealth creation, property, family, business, and retirement, while also ensuring enough protection is in place to keep those plans on track if something unexpected happens.
“And while every client deserves proactive advice, those experiencing major life or financial transitions need particular attention. First-home buyers are taking on significant new debt, investors may have increasingly complex obligations, and those approaching retirement need to consider how debt, income, and appropriate protection work together as part of their longer-term plan.”
Recognising signs of financial pressure
A health check can also identify emerging financial stress before the client’s options become more limited. Kerwin says common warning signs include missed or late debt repayments and bills, or clients dipping into an unarranged overdraft. However, changing the mortgage is not necessarily the first or best response.
“Tinkering with the mortgage is usually the last option, not the first. I find clients often need help with cashflow management more than a different mortgage strategy.”
Hussein suggests advisers look for changes in disposable income, increasing short-term debt, reduced savings or clients consistently struggling to get ahead. But advisers should also know what protection is in place if a household suddenly loses an income.
By raising these subjects early, it’s ‘easier’ to help clients adjust their spending, repayment strategy or wider financial plan before pressure escalates.
Tailoring the frequency to the client
Kerwin and Hussein take different approaches to how often health checks should occur, highlighting that review programmes need to reflect both an adviser’s service model and an individual client’s needs.
Hussein believes every client should have a meaningful review at least annually and whenever there is a significant life change. Kerwin, however, says the appropriate frequency is subjective and may depend on the client’s financial knowledge and circumstances.
“I have trialled annual reviews, and I found most clients don’t want or need a review every year, and I didn’t notice a significant variance in opportunities by having annual reviews versus reviewing when the fixed rate expires.
“I may have a controversial view, but I have tried both approaches and my experience is that clients are more motivated to talk when their fixed rate is expiring.”
Whether reviews are annual, tied to a refix or prompted by a life event, the central consideration is that they are relevant and personalised.
“All segments need appropriate advice that is tailored to their respective goals and stage of life,” Kerwin says.
Becoming the client’s long-term adviser
Reviewing mortgages in isolation may mean missing important risks, needs and opportunities elsewhere in a client’s financial life. And Kerwin points to ‘Kiwis in particular’ as those who often need warming up to have candid conversations about money, however it is important that he is able to have a holistic review of a client’s finances.
“Of course we need to be mindful of not giving personalised advice in areas we aren't qualified, but most advisers can identify a gap in a client's finances and refer to the appropriate expert. This is adding tangible value to their lives.
“I think many advisers are apprehensive about offering ‘broader advice’ in fear of ‘overzealous’ regulators, however I’ve had good dialogue with the FMA on a couple of occasions, and their attitude is encouraging more quality advice to clients, not less – obviously as long as the advice is within the legal framework.
“If I am talking to a client and identify they are possibly in the incorrect KiwiSaver fund, I may not be qualified to give personal advice, but we can give class advice or refer the client to someone qualified. And I think that’s a good outcome for everyone.”
Proactive communication is therefore critical, which is why Kerwin recommends advisers establish a drip-fed email system providing clients with regular educational information. This offers a relatively low-cost way to add real-life value, while keeping the adviser front of mind for reviews, credit events and referrals.
“It’s a simple and proactive step every adviser should be doing.”
For Hussein, the most important action is even more direct.
“Pick up the phone and reconnect – not because a fixed rate is expiring, but to genuinely ask what has changed since you last spoke.
“If the only reason we contact a client is because their fixed rate is expiring, we risk becoming transactional rather than being their trusted adviser. Regular conversations can uncover opportunities to reduce debt, restructure lending, use equity, plan for future goals, and identify gaps in insurance or protection that may have developed as the client’s life has changed.
“I believe good advice starts with listening, and great advice continues long after settlement.”
