Advisors bringing brokers in-house, says aggregator

by Julia Corderoy27 May 2015
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.”


  • by king clive 27/05/2015 8:48:08 AM

    Brokers should never move in house with a planner or a Accountant unless the accountant/planner is prepared to pay a decent salary. We pay our broker 100K base plus comm.

    Too many planners put a young broker on with no salary and a 50/50 comm split. Smart brokers will see through this and leave. Put some hurt money on the table in way of a salary to the individual. It shows your serious.

  • by Papery 27/05/2015 9:18:17 AM

    Integrate = control
    Control = bully (sometimes)
    bully= loss of integrity

    Beware conflict of interest & whose interest you are really putting first....the client or your employer.

  • by Scott Beattie 27/05/2015 9:32:51 AM

    Is the same Kevin Frost that I called and he said that he he would call me the next day (3 weeks ago) to discuss a letter that he sent me??