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LifeDirect Mortgages Review

LifeDirect Mortgages focuses on delivering a consistent nationwide service via phone, online meetings, and face-to-face, with many Advisers based in the Wellington region - our review explains what you need to know.
Updated 17 December 2024
Summary
  • LifeDirect Mortgages was launched in October 2024, with several highly-rated mortgage advisers moving over from Loan Market Capital & Coast. The advisers are aligned with LifeDirect, an insurance adviser business specialising in life and health-related insurance products.  
  • ​This review aims to outline what lenders LifeDirect Mortgages works with, how it differs from standalone mortgage brokers and competing nationwide players like Mike Pero Mortgages and Loan Market, and the pros and cons of the service.

Our review covers:
LifeDirect Mortgages' lenders include:
  • Banks - ANZ, AIA, ASB, BNZ, Kiwibank, Westpac, TSB, SBS, COOP, Unity, Bank of China, and China Construction Bank.
  • Non Banks – Liberty, Avanit, Pepper, Basecorp,
  • Specialist Lenders – ASAP, CFML, General Finance, Funding, Partners, Finase, DBR, First Mortgage Trust, Cressida Capital, Midlands, Pallis Capital, Prospa, Southern Cross

Disclaimer: Several ex-Loan Market mortgage brokers who have joined LifeDirect Mortgages have a long-standing relationship with MoneyHub, as we have listed and promoted them in our best mortgage broker guides for Wellington, given their wide acclaim. This pre-existing relationship and our relationship with LifeDirect, as a suggested website to get life-related insurance quotes, do not influence our review.

What Is LifeDirect Mortgages and Why Was It Launched?

LifeDirect Mortgages was launched in October 2024 and brings together eight Mortgage Advisers working with clients all over New Zealand. As a background, the company started in 2015, under the Loan Market brand, initially in Wellington and then grew in both reach and team members. The business joined forces with the LifeDirect business in 2024 to offer clients wider financial services, given the significance of mortgages to many New Zealanders' financial journeys. LifeDirect, the insurance arm, took the view that it could help mitigate some of the risks associated with today's debt levels and consequently launched its mortgage advisory.
 
LifeDirect Mortgages' team of experienced mortgage advisers supported by a dedicated team of five support staff. Together, they assist with a range of lending needs, including home, business, and commercial loans. Our research team discussed LifeDirect Mortgages' approach; their management confirmed they aimed to deliver a "personalised, ongoing service similar to the traditional "bank manager" role - one that understands an individual's financial position and goals and works collaboratively to help them succeed".

The team works with clients on diverse financial goals, including:
Since its establishment with a single adviser nine years ago, the business has facilitated over $2 billion in lending. Initially focused on the Wellington region, LifeDirect Mortgages now offers its services throughout New Zealand.

Types of Mortgages Available Through LifeDirect Mortgages

​Currently, LifeDirect Mortgages offers the following loans and financing through its lending partners:
  • Fixed-rate mortgages
  • Floating rate mortgages
  • Offset mortgages and revolving credit facilities
  • Specialised options: first-home buyers, investment properties, refinancing
  • Commercial lending 
  • Non-bank funding options – poor credit history 
  • Non-bank funding options – Property development, specialised funding of commercial property
  • Asset Finance options

What Makes LifeDirect Mortgages Different to a standalone mortgage adviser or chain like Mike Pero Mortgages?

LifeDirect Mortgages differentiates itself through its structure, approach, and commitment to personalised service, focusing on client needs at every mortgage process stage. We asked LifeDirect Mortgages' team to explain their point of difference - we summarise their responses below (and have edited their wording for clarity):

1) People and Culture
Over the past nine years, the LifeDirect Mortgages team has been built with experienced professionals with backgrounds in financial services. This means clients are supported by a dedicated mortgage adviser, a client services manager, and an operations specialist, ensuring every aspect of the home loan process, from application to ongoing maintenance, is handled efficiently.

Unlike traditional bank services, where clients often don't know who to contact for financial advice, LifeDirect Mortgages offers a consistent, personalised point of contact. LifeDirect Mortgages clarified that their "internal culture prioritises accountability, going beyond expectations to address client needs while owning and resolving challenges when they arise".

2) Personalised Problem-Solving
LifeDirect Mortgages focuses on tailored advice and practical solutions. This includes:
  • Identifying financial challenges and proposing effective solutions - not everyone has a 9 to 5 job with a stable income; each adviser will work to deliver a solution based on the client's needs.
  • Presenting options with a clear analysis of their pros and cons to empower clients' decision-making
  • Providing advice grounded in professional opinions, helping clients gain confidence in their financial choices
  • Simplifying complexity with loan terms and requirements to guide clients toward informed, final decisions

3) Communication and Collaboration
LifeDirect Mortgages made it clear that their advisers invest time in explaining the range of options available, whether through banks, non-bank lenders, or alternative funding sources. The approach considers variables like debt reduction, investment opportunities, or freeing up cash for lifestyle expenses. Every solution is adjusted to reflect the client's stage of life and financial objectives.

4) Flexible and Accessible Service Delivery
While most advisers are based in the central North Island, LifeDirect Mortgages delivers its services primarily through online meetings, phone calls, and email. This flexibility has been embraced, especially post-2020, allowing clients to schedule meetings outside standard working hours, Monday to Thursday, if needed. While the team prioritises work-life balance, they remain adaptable to accommodate client schedules.

5) Technology 
By merging with LifeDirect (the insurance adviser), the aim is to reinvest and bring a better client experience. LifeDirect Mortgages specifies that they are investing to improve the client experience in these areas:
  • Streamlined Application Process: Smart technology is eliminating the need for traditional paper forms. This innovation allows for automated data entry, simplifying the application process for clients.
  • Borrowing Power Estimation Tool: A tool is being developed to provide accurate estimates of how much a client can borrow before starting the formal application process. This feature is designed to offer clarity and set realistic expectations early on.
  • Tailored Loan Insights for First Home Buyers: Integrated with the borrowing power tool, this feature helps first-time buyers understand their options. It identifies whether they qualify for a first-home loan and evaluates the suitability of purchasing a new build or an existing property.
  • Market Rate Checker: A rate comparison tool that helps clients determine whether they are receiving competitive rates and assess the value of switching banks. This feature supports informed decision-making regarding refinancing.
  • Ongoing Process Improvements: LifeDirect Mortgages also works on projects to enhance internal efficiency. These initiatives aim to reduce administrative tasks for advisers and support staff, allowing them to dedicate more time to client interactions and personalised advice.

LifeDirect Mortgages seeks to provide clients with a more efficient and informed mortgage experience by focusing on these enhancements. We asked LifeDirect Mortgages Director, Dan Bailey to explain further:
  • "How often do you go to ring your bank manager and they are no longer there? What we provide is continuity of service to clients; we get to know you. Most advisers have been within the mortgage adviser industry for an average of 8 plus years with life in the bank before that so know how to get you into your first home, upgrade or, investment property or business”.
  • ​"The clients are telling us that using a mortgage adviser is what they want by the movement away from the bank direct; recent banks have released data showing us that they generate 64% of their new lending from our channel, almost 2 out of 3 borrowers use us and we expect that to continue to grow. Other countries suggest this will reach 80%; consumers want choice and advice".

How Does LifeDirect Mortgages Work? What is the Process from First Contact to Mortgage?

LifeDirect Mortgages provides guidance and support for first-home buyers, helping them navigate the mortgage process from initial contact to settlement. We asked them to explain their step-by-step breakdown of the process, which we have summarised below:

1) Initial Contact and Preliminary Details
  • Prospective buyers share basic details such as their location, income, and deposit amount.
  • LifeDirect Mortgages uses tools like mortgage payment calculators and borrowing power estimators to provide insights even before formal applications begin.

2) Application and Documentation
  • After the initial conversation, buyers complete an online application form.
  • Additional information needed for a formal application is collected during the next phase.
  • Online meetings are scheduled to review the application and address any missing details.

3) Loan Assessment and Budgeting
  • Advisers determine the most suitable loan product based on the buyer's deposit and circumstances. Options include First Home Loans (Kainga Ora), loans for new builds, or standard bank loans.
  • A budget is established, covering the maximum property purchase price and expected loan payments.

4) Guidance and Pre-Approval
  • Advisers explain the home-buying process and address client questions, leveraging expertise to guide buyers through complexities.
  • Pre-approval is pursued, though funding availability for deposits under 20% may limit options. If pre-approval isn't possible, advisers help establish a maximum budget and navigate alternative pathways, such as bidding at auction.

5) Special Considerations for Loan Types
  • First Home Loans and new build loans often allow for deposits below 20%, as they are exempt from standard restrictions.
  • Strategies are developed to address potential issues, such as deferred property maintenance, which can affect loan approval.

6) Conditional and Unconditional Finance
  • Once a property is under contract, the finance condition is finalised. Other conditions like LIM reports, building inspections, or insurance are also coordinated.
  • If finance becomes unconditional, buyers notify their lawyer to confirm the contract.

7) Deposit Payment
  • Buyers pay their deposit (usually within three working days of going unconditional) to the real estate trust account.
  • Advisers clarify the difference between the deposit required by the bank and the deposit stipulated in the real estate contract, which can vary.

8) KiwiSaver Considerations
  • Buyers using KiwiSaver for deposits need to allow 5–7 working days for fund release, certified by their lawyer.
  • KiwiSaver funds used for new builds are not accessible again unless under hardship, which may not be approved.

LifeDirect Mortgages' Self-Employed Mortgages Process and Specialisation

Securing a mortgage as a self-employed individual can be more complex than for salaried applicants, and expertise in handling these cases varies widely among advisers. LifeDirect Mortgages emphasises the importance of choosing advisers with a solid understanding of business financials, as this knowledge is crucial for navigating lender requirements effectively. We asked LifeDirect Mortgages to explain the process and must-know facts for anyone self-employed looking to get a mortgage:

Self-employed applicants are typically required to provide the following:
  • Financial Statements: Two years of financial statements prepared by an accountant or bookkeeper, along with an IR4 or IRD confirmation of taxable income.
  • Personal Tax Documentation: An IR3 form or IRD-confirmed earnings. Some accountants may not provide IR3s, and certain banks are still adapting to this change.
  • Business Debt Details: Information about any debt held within the business.

Addressing Two-Year Trading Requirements
Many banks require two years of trading history before approving a mortgage for self-employed applicants, which can delay funding for newer businesses. However, strategies exist to work within or around these requirements:
  • One Year of Trading: Some banks accept a single year of verified trading results, particularly for standard mortgage products.
  • First Home Loan Products: These generally require two years of trading history.
  • Alternative Verification: Accountants can provide 12 months of verified profit and loss statements for businesses without a full accounting year. For example, trading results from 1 November 2023 to 31 October 2024 can be used if the business started in August 2023.

Non-Bank Lending Options
Non-bank lenders may offer more flexibility for self-employed borrowers:
  • GST Returns: Lenders may use GST returns to assess income over six months and annualise the figures, providing a more immediate picture of the business's financial health.
  • Shorter Trading Periods: Non-bank options may accommodate borrowers with less than two years of trading history, offering solutions where traditional banks may not.

Simplified Application Process
LifeDirect Mortgages simplifies the process for self-employed applicants by guiding them through:
  • Preparing the required documentation and financial information.
  • Using the online platform for initial applications and supporting document submission.
  • Following up on pre-approvals and navigating the steps to finalise the loan.

Self-employed applicants face unique challenges when applying for a mortgage, but with tailored advice and an understanding of alternative solutions, they can access funding to meet their needs.

Advantages of Using LifeDirect for Mortgages

​LifeDirect Mortgages offers a range of services designed to meet the needs of borrowers across New Zealand. Their offering and points of difference from locally-based mortgage brokers include:
  • Nationwide reach: LifeDirect Mortgages operates across New Zealand, ensuring accessibility for individuals and families regardless of their location. This approach makes their services relevant for both urban and rural clients.
  • Online Accessibility: The application process is entirely online, providing a straightforward and efficient way for customers to access mortgage services. This reduces the need for in-person visits and helps streamline the process.
  • Transparent Fee Structure: LifeDirect Mortgages emphasises clarity in their fee structure. Customers are provided with upfront information about costs, avoiding hidden fees and enabling them to budget accurately.
  • Comparison Tools: The platform includes tools that allow clients to compare options from various lenders. This feature empowers customers to evaluate different offers and choose a mortgage that aligns with their financial goals.
  • Experienced Advisers: The team includes advisers with extensive experience in the finance sector, many of whom have over 20 years of expertise. Their diverse professional backgrounds provide clients with a range of perspectives and insights.
  • Diverse and Inclusive Team: LifeDirect Mortgages has a varied team of advisers, with more than half being female and represented by a range of ages. This diversity supports a broader understanding of customer needs.
  • Comprehensive Financial Services: In addition to mortgages, LifeDirect Mortgages offers a full suite of financial products, including Life Insurance, General Insurance, KiwiSaver,Car and Personal Loans, Pet and Business Insurance and Reverse Mortgage Loans.

LifeDirect Mortgages Frequently Asked Questions

To best understand the process, we talked to the LifeDirect Mortgages team and focused our FAQs around eligibility, the house-buying process and adviser alternatives, which we detail below:

Eligibility and Requirements FAQs:

Who qualifies for LifeDirect Mortgages' services (e.g., first-time buyers, self-employed individuals, etc.)?

LifeDirect Mortgages' focus is helping first-home buyers and those looking for a better deal on their current mortgage, as well as providing advice. LifeDirect Mortgages is happy to take on clients who just have loans and provide advice on fixed-rate rollovers - their focus is on a long-term relationship rather than just a transaction.
Outside of that, LifeDirect Mortgages has the expertise to cover these areas with its pool of mortgage advisers
  • Buying a new home
  • Self-employed clients
  • Investment property purchases
  • Commercial property purchases
  • Trading business purchases
  • Top ups to existing lending with your bank
​House Buying Process FAQs:

What documentation is required to apply for a mortgage?

Applicants typically need to provide:
  • Proof of income (such as recent payslips or financial statements for self-employed individuals)
  • Bank statements (usually covering the last three months)
  • Proof of identification (e.g., passport or driver's license)
  • Details of current debts and liabilities
  • Lenders may request additional documents during the process.

How does the mortgage application process work with LifeDirect Mortgages?

The process begins with submitting a callback request through the LifeDirect Mortgages website. Once contacted, applicants receive an application form to provide basic financial and personal information. 

What happens after the application form is completed?

​Once the form is completed, LifeDirect Mortgages arranges an online meeting with the applicant. This meeting is used to discuss key topics such as the maximum purchase price, the benefits of various lenders, or the applicant's specific goals.

How is the mortgage plan developed?

Following the initial meeting, a tailored plan is agreed upon. LifeDirect Mortgages then collects supporting information required by banks and submits applications to the applicant's preferred bank and other suitable lenders. This may include lenders offering faster approvals, better terms, or suitable product mixes.

How are lender preferences handled?

If applicants have specific banks they prefer to work with, LifeDirect Mortgages includes those options wherever access is available.

How are applicants kept informed during the process?

Applicants are notified when applications are submitted, along with an estimate of response times. Any additional information requests from the bank are communicated promptly.

What happens after mortgage approval?

Once a mortgage is approved, LifeDirect Mortgages provides pre-approvals, enabling applicants to proceed with purchasing a property.

What is the process for refinancing a mortgage?

Interest rates and cash contribution offers from various lenders are reviewed for refinancing. These options are discussed to determine whether switching is advantageous.

What happens once a property is under contract?

When a property is under contract, final conditions are addressed until the finance becomes unconditional. At this stage, the applicant confirms the purchase through their lawyer.

How is the settlement process handled?

Loan and mortgage documents are sent to the applicant's lawyer for signing after a comparison of offers. The applicant deposits funds for settlement, which is coordinated between the lawyer and the bank.

What role do LifeDirect Mortgages play on settlement day?

Settlement day is managed primarily by the lawyer and the bank. Ideally, LifeDirect Mortgages has already resolved any potential issues beforehand to ensure a smooth process.
Alternatives to LifeDirect Mortgages FAQs: ​

LifeDirect vs Loan Market vs Mike Pero – What are the differences?

  • LifeDirect is New Zealand-owned and operated; no profits are returned to Australia (Liberty Financial, an Australian investment firm, owns Mike Pero Mortgages). 
  • LifeDirect is a standalone brand with micro-control over investing back into operations to improve the client's experience. This differs from franchise mortgage brokers, often controlled by their head franchisor's head office goals.
  • LifeDirect has 45,000+ clients across insurance and home loans and is focused on helping everyday New Zealanders achieve better financial outcomes and goals.
We've shortlisted top-rated mortgage brokers who go the distance for their clients in select cities around New Zealand: