Terms of Engagement

Disclosure Guide

Here is some key information you need to know to help you understand what type of advice I am able to give you, so that you can make an informed and confident choice when engaging me.

I am a Financial Adviser, my details are below, I am giving out advice on behalf of my Financial Advice Provider.

Financial Adviser

Financial Advice Provider

  • Total Mortgages Limited
  • Trading as Total Mortgages
  • 6 Princes Street, Hamilton
  • info@totalmortgages.co.nz | 078396399
  • FSPR Number: 712111

We operate under a current licence issued by the Financial Markets Authority in the name of: TOTAL MORTGAGES LIMITED FSPR Number: 712111

Nature and Scope of Advice

The information below will help you understand what type of advice will be provided.

Our Duties

I am bound by and support the duties set out in the Financial Markets Conduct Act 2013. These duties are:

  • Meet the standards of competence, knowledge, and skill set out in the code of conduct.
  • Give priority to the client’s interests.
  • Exercise care, diligence, and skill.
  • Meet the standards of ethical behaviour, conduct, and client care set out in the code of conduct.

Services

I will help you choose a loan that is suitable for your purpose from a panel of lenders (see below). Once I have chosen a lender and loan terms that are suitable for you, I will help you to obtain an approval.

Banks and Lenders

I source loans from a panel of approved lenders. The current lenders I can use are:

  • ANZ
  • ASB
  • Cressida
  • Heartland Bank
  • RESIMAC
  • Southern Cross
  • Westpac
  • ASAP Finance Ltd
  • DBR
  • NZCU
  • SBS Bank
  • The Co-Operative Bank
  • BNZ
  • Avanti Finance
  • First Mortgage Trust
  • Pepper Money
  • Select
  • TSB

Products

The types of financial advice products I can give advice on are:

  • Home Loans
  • Investment Loans
  • Construction Loans

What Else We Offer

I can help you with other services through my referral partners

  • Fire & General Insurance
  • Life, Health & Risk Insurance
  • Asset Finance
  • Ray White
  • UK Pension Transfers
  • XE Money

I am unable to offer legal or tax advice and recommend you consult your solicitor or accountant for this. Any advice I give in relation to KiwiSaver withdrawal for a first home purchase is limited to factual information on what can be withdrawn and the process for this, and does not extend to whether or not this is in your best interests. Please consult an investment adviser for advice on retirement savings.

Commission

I may receive commissions at settlement from the relevant lender if you choose to take out a mortgage following my advice. The commissions are between 0.55% and 0.85% of the initial mortgage balance or amount funded. I may also receive 0.015% to 0.020% of the mortgage balance on each anniversary from selected lenders or a fixed rate roll-over fee of $150 from some product providers for assisting in refixing your loan, but not both.

I may also receive a referral fee from some of the referral partners if you proceed to go ahead with their products.

 The commission I receive is shared with Total Mortgages for providing me with compliance support, training, and back-office support.

Fees and Expenses

I do not usually charge you a fee for our services, we receive a commission from the lender for the following services:

  • Settlement of your loan – Total Mortgages receives a single upfront commission directly from the lender. 
  • Refixing your loan – Total Mortgages receives a trail or a small renewal fee directly from the lender for providing you with an ongoing loan maintenance service such as refixes throughout the life of your loans 

A one-off service fee may apply for the following services: 

  • Total Mortgages reserves the right to charge a one-off adviser fee for work completed for Mortgage clients. This fee, if applicable, only applies to Non-Bank lending and is in no way associated with any commission Total Mortgages may earn or commission clawback.

Commission Clawback

If a mortgage is repaid within 27 months of your mortgage settlement, Total Mortgages will have to repay all or some of the ‘upfront’ commission received to the Lender. This is known as ‘commission clawback’. If Total Mortgages is charged with a commission clawback, due to early settlement of the mortgage arranged for you, then Total Mortgages will ask you to repay Total Mortgages the commission that has become repayable to the Lender, to a maximum of $2,400.00*, as cost recovery for the service provided.

*This has been calculated on an average of 12 hours of advice, negotiation and administration to complete and submit your loan application to the lender, at our hourly rate of $200 per hour. We may invoice you for this fee and it will be payable on the 20th of the month following the notification of the repayment of your mortgage. Details of how to make payment will be included on the invoice.

The above cost recovery only applies if Total Mortgages is not given the opportunity to arrange the refinance. 

There will be no fee payable if: 

  • Total Mortgages was given the opportunity but were unable to get a subsequent finance approval.
  • An upfront fee was agreed and paid by the Client when the mortgage was originally drawn.
  • In Total Mortgages opinion, the early repayment of the mortgage was driven by an exceptional change of circumstance for the Client.

 

A full schedule of all providers and their commission rates and clawback policies is available from your Total Mortgage adviser on request.

Termination of this Engagement

You may terminate this agreement at anytime prior to signing our declaration without notice by not signing the declaration. 

Either party may terminate this engagement at any time after signing the declaration by providing written notice to the other party. If you decide to terminate this engagement and no longer work with Total Mortgages, we ask that you provide a written email to your Total Mortgages adviser so that they can review and rectify any issues or concerns, if any. We appreciate any comments or feedback from you so we can continue to improve our services.  

If a Total Mortgages adviser prepares, submits and obtains a pre-approval with a lender but the client decides to settle the loan through another channel within a six-month period, then a Termination Fee of $1,200 will apply to cover our time spent to prepare your application and obtain your pre-approval.

Conflicts of Interest

I am paid a commission by lenders when a mortgage settles and in some cases at the mortgage anniversary each year. I ensure that I prioritise your interests by following an advice process that considers your circumstances and goals. I research suitable products and providers to ensure the advice meets your needs.

If, in the course of providing the Services, we identify circumstances that could cause us or the Adviser to have a conflict of interest, we will evaluate the potential conflict and, depending on the circumstances, apply appropriate safeguards to manage it. You acknowledge that we may need to terminate this engagement if we are unable to resolve or manage a conflict of interest satisfactorily.

I also undergo annual training on how to manage any conflicts of interest and record any conflicts in a register that we review and manage. Total Mortgages is subject to a yearly audit and compliance reviews to ensure we meet our obligations while doing right by our clients.

As a provider of professional financial adviser services, I have an obligation to act in the interests of our clients when making a recommendation. In providing advice to you, should any, actual or potential conflict of interest arise then I undertake to bring any such conflict of interest to your notice so that you may assess my advice objectively.

We manage these conflicts of interest by:

  • Always recommending the best product for your purpose regardless of the type and amount of commission I will receive.
  • Ensuring the amount of any loan is in accordance with your identified needs.
  • The commission I receive on loans is calculated as a percentage of the loan.

Client Responsibilities

It is your responsibility to provide me with accurate and relevant information at the time that the initial information is being gathered by way of the Fact Find or Needs Analysis, whichever takes place first. If you provide me with incomplete or inaccurate information, I may not be able to provide you with the advice, products or services you are seeking. It is important that you understand your obligation to provide me with accurate and relevant information in order for the financial services provider to appropriately assess the risk and make an informed decision about the products you may be seeking.

For insurance products, in order for the insurer to assess the risk and the appropriate premium, the law requires you to disclose all the information you know, or should know, that is relevant to the insurer’s decision whether to provide cover or determine the terms of cover. This is called your duty of disclosure. For example, you should disclose your current income, medical history and all information about insured and uninsured losses and claims. 

Referrals to Other Professionals

If at any time during the term of engagement, a potential need arises for the use of another professional, I undertake to refer you to an appropriate professional. You will not be billed or invoiced for such a service at any time by me. If an appropriate professional cannot be located I undertake to advise you as soon as possible so that you may engage a professional of your choice or seek advice in regard to the same. Should another professional be engaged, I do not accept any liability whatsoever for the advice provided or the fees invoiced by that other professional, regardless of how the engagement came about.

Privacy Policy & Security

I will collect personal information in accordance with my Privacy Policy. I regard client confidentiality as of paramount importance. I will not disclose any confidential information obtained from or about you to any other person, except in accordance with my Privacy Policy. The platform I use is secure and run on Amazon Web Services.

Complaints Process

If you have a complaint about my financial advice or service I gave you, you need to tell me about it. You can contact my internal complaints service by phoning, or emailing me using the heading Complaint – (Your Name). Please set out the nature of your complaint, and the resolution you are seeking. I will acknowledge receipt of this within 24 hours. I will then record your complaint in our Complaints Register and will work with you to resolve your complaint. I may want to meet with you to better understand your issues. I will provide an answer to you within 7 working days of receiving your complaint.

If we cannot agree on a resolution you can refer your complaint to our external dispute resolution service. This service is independent and will cost you nothing and will assist us to resolve things with you.

Details of this service are:
Insurance & Financial Services Ombudsman Scheme
info@ifso.nz | 0800 888 202

Availability of Information

This information can be provided in hardcopy upon your request.