Speaking to ifa, financial adviser Ben Warnes, who recently joined mortgage broker Shore Financial to head up its newly-created financial planning arm, says convergence between the professions has its upsides.
“The real advantage for mortgage broking businesses with a financial planning arm is that once the loan has been settled, the relationship doesn’t end there,” he said.
“There is more of a client relationship there as opposed to just one transaction. I think there is a huge opportunity for both sides of the relationship to create synergies.
“I can see a lot of mortgage brokers either merging with financial planners or having a referral arrangement in place.”
Mr Warnes said also that there is an abundance of work for advisers looking to broaden their offering to include risk products like insurance, adding that “it is no secret that Australians are grossly uninsured.”
“There is plenty of work out there for every adviser,” Mr Warnes said.
“I don’t get too concerned about competitors or people poaching clients; I believe there is so much work out there to be done that there is more than enough for me to earn a good living doing what I’m doing.”
Mr Warnes said many advisers moved into the risk space as a way to “pay their bills” during the GFC.
“Risk really came onto advisers’ radar during the GFC,” he said.
ifa is currently charting the convergence of mortgage broking and financial advice in the Financial Services Convergence Report. To take part in the survey, please CLICK HERE.
I agree with this statement.
I have very good arrangements with Brokers and it works very well for both parties and also the client.
the problem is convincing the broker to have this arrangement .some are very reluctant to do it. I think it will be their loss in time.
I have no doubt that the integration of personal protection into the mortgage advice process is going to become more and more common, but sadly few mortgage brokers have a track to run on in the area of personal protection.
I would be happy to help any such advisers with a structured process that fits hand in glove with the mortgage advice process.
Mortgage brokers flog loans. It is hard to see how this skill translates into an ability to provide individual appropriate financial advice to the borrower. A cynic might say it will merely offer mortgage brokers further chances to gear their assets. Remember Storm?