Approximately two-thirds of brokers are writing other loans for their clients outside of mortgages, according to a new broker survey.
According to Momentum Intelligence’s latest Broker Pulse statistics, which involves a monthly survey of sentiment towards lenders across the third-party channel, approximately two-thirds of the 215 brokers surveyed were helping service their client’s finance needs outside of their mortgage.
The survey for July 2020 asked brokers whether they assist their clients with any credit products outside of residential mortgages.
Sixty-eight per cent of brokers outlined that they were offering services beyond residential mortgages (e.g. business finance, personal finance or for SMSF loans), either by writing the loan themselves or passing the client onto a lender.
Momentum Intelligence found that nearly three-quarters of brokers (73 per cent) were offering clients secured personal asset finance help (such as car loans) – with nearly half (48 per cent) writing these loans themselves.
Secured business loans were the second most popular finance service offered by brokers, with 71 per cent stating that they offered these in some capacity (either directly or by passing the client on to a lender).
SMSF loans were also commonly offered by brokers (68 per cent of respondents stating they offered it), with this type of loan also being the one product suite outside of mortgages that brokers preferred to process themselves rather than referring them to a lender.
A whopping 92 per cent of the brokers that offered SMSF services said they processed SMSF loans internally end-to-end, with just 6 per cent referring it to the lender.
Other types of finance commonly written were unsecured business loans (65 per cent) and unsecured personal loans (63 per cent). The latter was found to be the product that brokers were most likely to refer out to a lender (27 per cent).
The findings of the most recent Broker Pulse survey demonstrate how brokers are increasingly helping their borrowers with their finance needs and positioning themselves as the trusted credit adviser of choice.
It echoes similar trends noted by the Mortgage & Finance Association of Australia in its latest Industry Intelligence Service Report (IIS) 9th edition, which found that the number of mortgage brokers writing commercial loans had hit a new high.
The latest edition (covering the six months to September 2019) showed that mortgage brokers are increasingly turning to commercial business, with the number of mortgage brokers writing commercial loans through their aggregator panel having increased to a new high of 3,670 brokers in the six months to September 2019.
Year-on-year, this represented an increase of 53 brokers or 1.47 per cent and equates to 22.1 per cent of the mortgage broker population that operate under the 13 aggregators included in the report.