Brokers are repositioning to offer a broader range of lending lines, as more borrowers look for a broker they can trust to deliver flexible conditions across all types of lending, amidst tough, constantly evolving market conditions.
“Cost-of-living pressures have led to customers looking for a single, trusted source of information who can help them meet all their lending needs,” said John Mohnacheff, group sales manager at Liberty.
The latest MFAA data showed a significant rise in the number of brokers diversifying into commercial lending, up 16% year-on-year and breaching the 6,000 mark for the first time in September last year.
Providing brokers with the opening to explore other lines of business was the slowdown in housing as well as a switch towards refinancing.
Read more: More brokers turn to Plan B and diversify
“The shift towards refinancing has prompted brokers to thoroughly review all personal and business finance commitments, including commercial facilities and asset finance requirements, essentially giving brokers the chance to expand their knowledge and generate more opportunities,” said Peter Vala, general manager for partnerships and distribution at Thinktank.
“We have observed a continuing rise in residential brokers using Thinktank for commercial loans, encompassing the range of purchase, refinance and equity release transactions. Additionally, there's been a significant increase in activity for commercial self-managed super funds.”
Diversifying outside of home loans can mean being able to offer other lending types, such as commercial, asset finance, and small business and personal loans. And having multiple product lines means not having to send borrowers looking for a range of options down the road.
“A broker who can service unique customer situations with a diversified and flexible product offering can be a strong drawcard,” Mohnacheff said.
Diversifying also serves as an additional armour for brokers against a downturn in one part of the lending market.
“By positioning brokers as all-round finance experts, they can add value to their loan portfolio, ensuring long-term sustainability, and create lasting customer relationships,” Mohnacheff said.
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