Sydney-based wealth management firm Stanford Brown has merged with local mortgage brokerage, John Ruddick Home Loans, to form a new arm of the business.
John Ruddick, founder of John Ruddick Home Loans, has now become CEO of the newly created Stanford Brown Home Loans.
Starting as a mortgage broker with Wizard in 2001, Ruddick established his own firm in 2002. After being approached by “two or three financial planning companies every year” to form a closer relationship, the choice was made to form a partnership with Stanford Brown two and a half years ago, he told
Australian Broker.
“They started referring us customers. It went very well from the beginning so six months later we set up a referral company: Stanford Brown Home Loans,” he said. “I still had John Ruddick Home Loans and then we had this referral company which was 50% owned by me and 50% owned by Stanford Brown.”
The partnership was formed because Stanford Brown was the right fit, Ruddick said.
“They’re a very ethical company with a great culture amongst their employees. They’ve got a wide range of financial services that they offer and we get on very well on a personal and a professional level.”
While it was originally a subsidiary of John Ruddick Home Loans, Stamford Brown Home Loans quickly became the dominant part of the business, he said.
“We decided late last year that we should move into their premises and merge John Ruddick Home Loans into Stamford Brown Home Loans.”
Clients of John Ruddick Home Loans are currently being notified of the change.
“Nothing really changes from their point of view,” he said. “They’ll still get the same level of service and they’ll still be largely dealing with me.”
In total, there are three brokers working in the new arm – including Ruddick himself – plus an additional loan processor.
“The advantage is now that we’ve now got immediate access to people who understand important things that are related to mortgages like personal insurance and superannuation.”
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