The questions we get every week.
Twenty-nine of them, organised by category. Plain English, NZ-accurate, no jargon. If your question is not here, drop it into the chat in the bottom right and Craig will answer it personally.
General questions.
What is a financial adviser and how is one different from a mortgage broker?
A mortgage broker is a financial adviser who only handles one product, mortgages. A full financial adviser, especially a Certified Financial Planner, covers mortgages, KiwiSaver, insurance, investing and retirement planning under one regulated relationship. Wealth Health is licensed to give advice across all four pillars.
How much does financial advice cost in NZ?
For mortgage and insurance work, the lender or insurer pays the adviser a commission on settlement, so there is no direct cost to you. For full financial planning work (an investment portfolio review, an estate plan, a retirement projection), Wealth Health charges a planning rate that is disclosed up front and agreed in writing before any work starts.
What is a FAP licence and why does it matter?
A Financial Advice Provider licence is the FMA's authorisation to give regulated financial advice in New Zealand. Without one, an adviser cannot legally give personalised advice. Wealth Health holds a full FAP licence under FSP 523606, which you can verify on the Financial Service Providers Register.
Is Wealth Health independent or tied to a bank?
Independent. Wealth Health is not owned by any bank, insurer or fund manager. The firm earns commission from product providers, but is under no obligation to recommend any specific provider, and any conflicts are disclosed in writing in the disclosure document.
How do I verify Craig's credentials?
Search the public Financial Service Providers Register for FSP number 105424 (Craig as an adviser) or FSP 523606 (Wealth Health as a firm). The CFP designation can be verified through Financial Advice New Zealand.
Mortgages.
Do I need a mortgage broker or can I just walk into my bank?
Your bank's job is to negotiate the rate that is best for the bank. A mortgage broker negotiates against six banks at the same time on your behalf, for free. In almost every scenario, the broker-led path produces a better total outcome once you factor in rate, cashback and structure.
How much does a mortgage broker actually cost?
Nothing to you. Brokers are paid a commission by the lender on settlement, typically around 0.55% to 0.85% of the loan plus a small trail commission. Wealth Health discloses every commission upfront in the disclosure document.
Should I fix or float my mortgage?
It depends on your fix expiry, your tolerance for repayment change, and what the RBNZ Official Cash Rate is doing. Most households end up with a split between fixed and floating. Wealth Health publishes a fresh take inside two hours of every OCR decision under Insights.
How much can I borrow on my income?
Roughly 4 to 5 times gross household income, less existing debt commitments and adjusted for living costs. The real number depends on the lender's specific servicing test rate, which changes monthly. We give you a real, lender-specific number in fifteen minutes.
Why does the bank quote me a different rate than the brokers list?
Banks publish a "carded" rate and then negotiate "special" rates with brokers for new business or refinances. The special rate is often 0.2% to 0.5% lower than the carded rate. The bank will not offer you the special rate unless you ask, and they will rarely give you the broker's special rate even if you do ask.
Can I refinance to a different bank, and is it worth it?
Almost always yes. Banks compete for new business with cashback offers, often $3,000 to $5,000 per $100,000 of lending. We model whether the cashback covers the break costs and whether the new rate is genuinely better, not just headline-better.
What happens if I have bad credit or a complicated income?
We work harder. Self-employed, contract income, recent defaults, casual hours, child-support income: all of these are workable with the right lender and the right presentation. Three banks will reflexively say no. The fourth might say yes. Finding the fourth is what we do.
What is the Kāinga Ora First Home Loan scheme?
A government-backed scheme that lets first-home buyers who meet income caps borrow with only a 5% deposit at the same interest rate as a 20% deposit borrower. We map your eligibility before you start house hunting.
KiwiSaver.
How much can I withdraw from my KiwiSaver for a first home?
All of it except $1,000 (the minimum balance you must leave behind) plus your employer contributions, member contributions, returns and government top-ups. The withdrawal is processed by your KiwiSaver provider and paid to your solicitor's trust account at settlement.
Which KiwiSaver fund should I be in?
Depends on your age, your time horizon, and your tolerance for ups and downs. Most New Zealanders under 50 with no immediate plans to withdraw should be in a growth fund. Default funds are conservative and quietly cost people hundreds of thousands of dollars in retirement balance.
Is KiwiSaver enough for retirement?
For most Kiwis, no, but it is the largest single piece. A typical household will retire with NZ Super plus KiwiSaver plus mortgage-free home equity. If you want to retire on more than the basic pension, KiwiSaver needs to be paired with extra savings, investments or downsizing plans.
Can I have more than one KiwiSaver fund?
No. You can only be in one KiwiSaver scheme at a time, but within most schemes you can hold a blend of funds (for example, 70% growth and 30% conservative). Switching schemes is free and takes about ten working days.
Do I pay tax on my KiwiSaver?
Yes, on the investment returns inside the fund, at your Prescribed Investor Rate (10.5%, 17.5% or 28%). The wrong PIR costs members thousands over a lifetime. We check your PIR is correct in every review.
Insurance.
What insurances does the average Kiwi household actually need?
Income protection, life cover, trauma cover, and medical insurance, in roughly that priority order. The exact mix depends on dependants, debt, and ACC entitlements. Most households are either over-insured on the wrong covers or under-insured on the right ones.
Do I need life insurance if I have ACC?
Yes. ACC only covers accident-related injury and death. The vast majority of working-age health claims are illness, not accident, and ACC pays nothing for illness. Income protection and trauma cover fill the gap.
What is the difference between trauma cover and medical insurance?
Medical insurance pays for treatment (surgery, scans, specialist visits) up to a per-condition limit. Trauma cover pays a lump sum (typically $50k to $250k) on diagnosis of a serious condition like cancer, stroke or heart attack, regardless of treatment cost. Most households want both.
How is income protection different from mortgage repayment cover?
Mortgage repayment cover pays your mortgage if you cannot work. Income protection pays a percentage of your income (typically 75%) and you can spend it on anything. Income protection is broader and better, but mortgage cover is sometimes the only option for self-employed clients with variable income.
Will my insurer actually pay out if I claim?
If your application was honest and your policy is appropriate, yes. The two reasons claims get declined are non-disclosure on the original application (the client did not mention a pre-existing condition) or the wrong type of cover for the situation. Both are avoidable with proper advice.
How does insurance commission work?
Insurers pay advisers an upfront commission when a policy is placed (typically 100% to 200% of the first year's premium) and a smaller renewal commission each year after. All commission rates are disclosed in writing in the firm's disclosure document.
Working with us.
What happens at our first call?
Fifteen to twenty minutes on the phone or in our Papamoa office. You talk, Craig listens, takes notes. There is no pitch. By the end of the call you will have a short summary of what you said with one or two things worth checking properly.
Do you charge for the first meeting?
No. The first call is always free and never has any obligation. Most clients do not pay anything at all for mortgage and insurance work; commission from the lender or insurer covers it. Planning work is charged separately and agreed in writing before any time is spent.
How often will I hear from you after the first piece of work?
Annually as a minimum (your mortgage refix, KiwiSaver review, insurance review) and any time something material changes in your life. We deliberately do not flood clients with newsletters. The Insights section covers OCR decisions and market news for clients who want to keep up.
Can I change my insurance after a health diagnosis?
You can usually keep your existing cover, but new applications will be loaded, excluded or declined depending on the condition. This is why getting cover in place while you are healthy matters.
What happens if Craig gets hit by a bus?
Wealth Health is a firm of four, not a one-man-band. Fiona, Jared Frampton and Caro all hold client relationships and can step in. The firm carries professional indemnity insurance and has a documented business continuity plan, both disclosed in the disclosure document.
Got a question we haven't answered?
Use the chat in the bottom right, or book a fifteen-minute call.