Mortgage advice business setup costs, key steps and timeframes

Starting a mortgage advice business in New Zealand usually takes between 1-6 months depending on certain factors including applying for registration on the FSPR, licensing through the FMA and lender accreditations. One-off setup costs typically range from $4,350-$6,180, with ongoing annual expenses of $11,000-$16,000.

Here’s the breakdown:

Typical one-off setup (approx. $4,350-$6,180 total)

• Company name reservation & incorporation: $148 incl GST

• FSPR registration: $1,048 (= $345 app fee + $13 criminal check + $690 FMA levy)

• FAP full licence (Class 1-2): $703.80-$882.05 incl GST

• Aggregator onboarding: $250-$500 (varies by network)

• Domain, website & hosting (first year): $200-$600 ($20-$40 domain + $15-$50/month hosting)

• Email & productivity: $10-$20 per user/month (Outlook or Gmail)

• PI insurance: $2k-$3k per year, varying by cover and history

Typical annual/ongoing (approx. $11,000-$16,000 total)

• Companies Office annual return: $57.20 incl GST

• FSPR annual confirmation: $875 incl GST ($75 confirmation + $460 financial adviser levy + $340 FAP levy)

• Dispute Resolution Scheme: ~$350 per year (varies by scheme)

• CRM/Aggregation/Compliance services: $750-$1,000 per user/month = $9,000-$12,000 per year

• PI insurance: $2k-$3k per year

• Other software tools (property valuation, calendar booking, marketing platforms)

Key steps

1. Incorporate your company

2. Register on the FSPR and join a DRS

3. Apply for your FAP full licence (Class 1 or 2)

4. Confirm PI insurance and compliance programme

5. Set up software stack (CRM, email, website etc)

6. Join an aggregator for lender access and support

7. Receive lender accreditations and go live

FAQs

How long does it take to start?
Most setups complete in 1-6 months depending on FSPR processing, FMA licensing and lender accreditations. A lot of this is waiting time for your applications to be reviewed and accepted.

Do I need qualifications?
Yes. Advisers must meet the Code’s knowledge, competence and skill standards, usually by completing the New Zealand Certificate in Financial Services (Level 5) - Residential Property Lending.

What drives costs up or down?
Team size, CRM/aggregation package, website scope, PI cover level and whether you outsource compliance.

All figures are indicative and subject to change. These costs are based on a single-adviser business and provided for information purposes only. Actual costs can vary depending on provider, business model and scale.