The creator of a new product combining a residential mortgage with an investment has said brokers will need innovative products as a point of differentiation.
WealthMaker Financial Services managing director Michael McAlary has told Australian Broker the convergence of financial services will see consumers looking not only looking for service propositions that meet the broad range of their financial needs, but also looking for products that address both sides of the balance sheet.
"There is a convergence going on between investment and lending," he said.
With this in mind, McAlary said, the company has launched a new product he says represents the convergence of lending and investing. The company's Aspire home loan functions as both a mortgage and investment product.
"What we do is, rather than putting all the principal component of the instalment toward paying down the loan, we divert 30% of that and put it in an investment. It allows the customer to invest while paying down their loan," he said.