Financial planners may be better suited to advise borrowers on home loans than mortgage brokers, claims one consultant.
Responding to an article published yesterday by Australian Broker’s sister publication, Wealth Professional, announcing Resi Mortgage Corporation’s joint venture with Shartru Wealth Management, management advisor and business analyst at MGF Consulting Group, Max Franchitto, says the concept isn’t new, but argues that ‘formalizing an arrangement is now imperative’ if compliance with FoFA is to be met efficiently.
“In fact we are advising many financial planning firms to seriously consider buying a mortgage book of business and integrating it as a service, as FP’s may be better equipped to advise on debt management.”
Franchitto tells Australian Broker it’s an ‘obvious fit’ for a financial planner or independent financial adviser to be overseeing the debt management on the client’s balance sheet, particularly with the advent of SMSF and other investment vehicles.
“The financial planner is somewhat better informed on how to optimise that debt management.”
AFG general manager, sales and operations, Mark Hewitt, says it ‘makes sense’ for a business to be able to offer its clients access to a mortgage specialist and a financial planner under the one roof.
However, he’s concerned individuals who try to diversify their offerings too much risk spreading themselves thin.