Financial Advice Provider

Disclosure Statement of Pathway Mortgages Limited

Licensing Information

Pathway Mortgages Limited (FSP1007193), is a Financial Advice Provider (FAP) licensed and regulated by the Financial Market Authority (FMA) to provide financial advice services.

Please follow this link to search the FSP register at Financial Service Providers Register (companiesoffice.govt.nz)

Nature and Scope of financial services

Pathway Mortgages Limited only provides financial advice about mortgages provided by the following product providers:

• ANZ Bank
• ASB Bank
• BNZ Bank
• Westpac 
• Co-Operative Bank
• SBS
• Sovereign Home Loans (AIA Go home loan)
• Liberty
• Resimac
• Pepper Money
• Avanti Finance
• Prospa
• ASAP Finance
• Bizcap

Commissions

We will receive an upfront commission from the product issuer if you decide to accept a home loan product that we recommend to you.

There aren’t any fees payable by you for my services (including financial advice) unless we discuss and disclose the proposed fee and payment terms to you, which will become apparent once we’ve reviewed the loan requirements. Fees will only be payable in very limited circumstances (e.g. bridging loans or very short-dated loans which may not result in a commission being paid) and will only be charged following your formal acceptance of that fee.

Except in some situations noted above, we receive commissions from lenders when you draw down a loan (mortgage) with them. In some cases, we may receive ongoing (trail) commissions. We may also receive a commission from some lenders if we assist you in restructuring or refixing the interest rate for your loan. The commission structure varies between lenders from 0.40% to 1.00% of the loan amount and some lenders will provide an ongoing income of between 0.1% and 0.20% each year thereafter.

Clawback Recovery fee:

If the loan is repaid within 27 months of settlement (the ‘Clawback Period), Pathway Mortgages Limited may have some or all the original upfront commission ‘clawed back’ by the provider. To ensure that Pathway Mortgages Limited is fairly compensated for the services originally provided to you, we may see to recover some or all of cost from you via a clawback recovery fee.

Fee for our financial advice = $2,500 for 10 hours of work, calculated at an hourly rate of $250.

Examples of when we charge you a clawback fee include:

The property is refinanced within the clawback period and Pathway Mortgages Limited was not given the opportunity to arrange the Refinance.

The property is sold, and the loan is repaid within the clawback period.

Admin Fees – Change of Financial adviser after Approval:

If a client changes their mind about using a particular financial adviser after receiving conditional approval, there’s a charge of $2,500. This fee covers the time and effort expended by the broker, calculated at $250 per hour for 10 hours of work.

Service/Brokerage Fees for Private Lenders/Non-Bank Lenders:

When applying for a loan through a private or second-tier lender, the brokerage fee is typically 1% of the loan amount.

There might be a possibility to reduce this fee for existing clients as a gesture of goodwill.

If a brokerage fee is charged, clawback fees (fees charged when a client cancels a mortgage before maturity) will not be applicable.

Conflicts of interests (if any)

Pathway Mortgages and our financial advisers receive commissions from lending product providers through which we place business and only when you take out a mortgage arranged by us with them. We may also receive commissions when we refer you to insurance, business finance or KiwiSaver providers. The amount of the commission we receive depends on the provider, and it is determined as a percentage of the lending amount, insurance premium, or KiwiSaver balance.

More specific details of these commissions will be provided in our first meeting, and we have a clear understanding of your goals, also the commission details will be provided again at the time the advice is given.

To ensure Pathway Mortgages advisers prioritise our clients’ interests:

• We follow an advice process that ensures our recommendations are made appropriately, based on your personal goals and circumstances.
• All our advisers undergo annual training about how to manage conflicts of interest.
• We undertake an annual independent Compliance Assurance Review by a compliance adviser.

Referral Fees:

We reward our clients, who refer us business by way of Movie Vouchers, Restaurant Vouchers and Gift cards, when they refer their friends and family to us for their mortgage needs.

We also pay and receive referral commissions from real estate agents who introduce clients looking to sell their homes to us, and for us introducing clients to them. Similarly, we work with property managers/Insurance advisers who refer clients to us and we refer to them. Depending on the service required, these commissions range from 5% to 40% of the net commission, varying by referral source.

We provide full disclosure in writing to our clients regarding the nature, purpose, and amount of commission received from interested parties involved in the referral.

Your Obligations:

Any advice or product implementation provided as a result of this needs analysis can only be as good as the information received from you, so we ask that you provide me with the information requested. Without relevant and correct information about your personal and financial situation we run the risk of giving advice that is not appropriate for your needs. If you are unsure as to why we need certain information, please ask so that we can explain.

Privacy Act 2020

It is acknowledged that any information collected for this needs analysis is private, and we promise to protect and maintain the privacy of this information.

You have the right to ask for access to and correction of your personal data under the Privacy Act of 2020.

Information provided by you and or any authorized agent will be used by us and any members of my staff for the purpose of providing advice to you.

It may also be used by any of the following: Product or service provider when putting any of my/our recommendations—or modifications to them—into practice; compliance advisers, assessors, or claims investigators who might require access to such data; and other experts, like financial planners, accountants, lawyers, or finance brokers, when their services are needed to supplement this advice and at your request.

Dispute Resolution Process:

Internal Complaints Process:

If our client is dissatisfied with our financial advice service, they can contact Taranpreet Singh Narang (Director) at 0212036174 or send an email to Taran@pathwaymortgages.co.nz with their complaints.

We also accept letters from them at 59 Pitt Avenue, Clendon Park 2103.

We will email our client to confirm receipt of the complaint within 5 working days of it being received. After reviewing the complaint, we will notify our client in writing of our plan to address it. To learn more about our client’s issue, we may need to get in touch with them.

After receiving a complaint, we try to address it within 10 working days. We shall notify our client that we require further time to review their complaint if we are unable to resolve it in 10 working days after receiving it.

External Complaints Process:

Our client can get in touch with Financial Services Compliant Limited (FSCL) if we are unable to address their complaint or if they are unhappy with the solution we suggest. To assist with the investigation or resolution of complaints made against financial service providers that are also participants in their scheme, FSCL offers a free, impartial dispute resolution service.

Customers can reach FSCL by phone at 0800 347 257 or by email at complaints@fscl.org.nz. Additionally, they may write to FSLC at Wellington, 6140, PO Box 5967.

FSCL membership number is 9210

Duties information

Pathway Mortgages Limited and our adviser have duties under the Financial Markets Conduct Act 2013 relating to the way that we give advice.

• Give priority to the clients’ interest.
• Act with transparency.
• Exercise care, diligence and skill and meet the standards of ethical behaviour, conduct, and client care set out in the Code of Conduct.
• Meet the standards of competence, knowledge and skill and the standards of ethical behaviour, conduct and client care set out in the Code of Professional Conduct for Financial Advice Providers

Our contact details:

Email: Taran@pathwaymortgages.co.nz

Contact: +64 212036174

Address: 59 Pitt Avenue, Clendon Park 2013.

A written copy of this information is available on request.