Financial advisers and accountants are increasingly bringing mortgage brokers in-house, with a growing trend towards partnerships and joint ventures rather than pure referral, says one aggregator.
According to Centrepoint Lending Solutions (CLS), the mortgage aggregator of the Centrepoint Alliance group, more financial advisers and accountants looking to CLS to source salaried or contracted mortgage brokers to join their practice, rather than the external referral partners they were seeking in previous years.
“This enables them to broaden their client value proposition and fully service the clients of the respective specialists by providing integrated financial advice and a seamless client experience,” Kevin Frost, general manager of CLS said.
“In many cases advisers and accountants will involve the mortgage broker in client meetings, particularly when it involves property investment.
“This approach means that internal referral processes can be properly integrated, and office and administration costs can be shared. Most importantly, it means the mortgage broker becomes an integral part of the business.”
A more integrated in-house model can has also led to significant increases in the volumes of loans written for some brokers, according to Frost.
Frost says one Brisbane financial planning group recently approached CLS to source an existing mortgage broker to join their firm on a salary plus profit share basis, with the group willing to buy out the brokers' current trail book.
“This approach isn't for all mortgage brokers, advice or accounting practices,” he said.
“There are still many practices who are content to simply refer each other business, and this often makes sense in terms of their size and focus. But for some larger firms, bringing their mortgage broking capability in-house can provide real benefits all round.”