Brokers should be partnering with financial planners

by Julia Corderoy11 Sep 2014
Mortgage broking and financial planning are two financial services that are increasingly beginning to work hand in hand. 

Mortgage brokers are seeing the importance of aligning themselves with financial planners, and vice versa, as we are seeing companies originally rooted in mortgage broking making the move to expand into financial planning.

Mortgage Choice has been one of the latest mortgage companies to expand into financial planning. Australia Broker spoke to Jessica Darnbrough, head of corporate affairs at Mortgage Choice, who says it makes commercial sense for mortgage brokers to partner with financial advisers.

“Mortgage broking clients are often making their biggest financial commitment to date and the broker should ensure their client's new asset is adequately protected. Financial advisers can offer mortgage broking clients with advice that will help put them onto the right financial path and help them achieve their dreams and goals. 

“We also understand that our customers do not want to disclose their personal financial information over and over again to various service providers. They want the convenience of dealing with one trusted organisation who can meet all of their financial needs.”

Darnbrough said this doesn’t mean brokers need to obtain an AFSL, but they will definitely benefit from introducing a financial planner into their business.

“While there are some mortgage brokers who successfully offer financial advice as well as home loan advice, the two professions are incredibly different and require different skills sets. 

“As such, we believe it is in everyone’s best interests if mortgage brokers and financial advisers operate as specialists under the one roof, rather than each professional trying to wear two hats.”

Australian Broker also spoke with Jessica O'Keeffe, a financial planner turned mortgage broker who now works for Loan Market. She said having a financial planning qualification has helped her have a more wholesome approach to her career as a mortgage broker.

“A financial planning background gave me an understanding of self-managed super funds, companies and trusts which makes it easier especially when dealing with investment properties or self-managed super fund loans.

“I also feel I can be of greater to service to my clients because of my background. I can talk to them about things outside of what I can typically offer as a mortgage broker, such as insurance, and point them in the right direction. 

“I can make sure that they are fully aware and more educated about the risks of taking on a mortgage and what they can do to mitigate those risks.”

Although O’Keefe has seen the benefit of having a financial planning qualification, she also says brokers don’t have to rush out and complete another qualification.

“Mortgage brokers don’t have to necessarily go out and gain a financial planning qualification, but it definitely pays to have a good relationship with those services that support the mortgage broking industry,” she said.