Why advice firms should consider lending as a service

financial advisers business insights

May 3, 2021

For most Australians, purchasing a home or an investment property is a significant part of securing their financial future, and poor decisions can have a lifetime impact. Playing a more active role in ensuring clients get the right loan is a natural extension of a financial adviser’s role. That’s where being able to leverage a lending service can help. Extending capability to include lending could also assist advisers to attract clients in the wealth accumulation phase, whether it being helping client’s children to purchase their first home or those looking to upgrade or purchase investment properties.

Centrepoint Alliance’s Lending Solutions business offers aggregated loan services to around 100 Finance Brokers across the country. The team have consistently been recognised in the industry, being finalists in The Adviser Australian Broking Awards as Best Boutique Aggregator of the Year (2019 and 2020). And our Lending Solutions Business Consultant, Tracey Najjar has been twice nominated as Best Aggregation Business Development Manager.

With the property market currently experiencing an uplift in property prices, loan volumes are hitting record levels. In fact, the lending industry has enjoyed buoyant conditions during the COVID-19 period when many other industries have experienced significant downturns.

Many advisers are introducing lending capability within their practices. If you have had this thought in mind, now is the time to act. Low interest rates combined with low levels of stock on the market and high buyer numbers (particularly fuelled by first home buyers) are driving strong growth in prices.

If you add the FOMO (Fear of Missing Out) phenomenon, continuing low interest rates, improving economic conditions and consumer confidence, low supply of housing stock and high demand, you could expect the levels of both refinancing and home purchases will drive lending volumes to new record levels.

Every adviser will have clients who have debt. If you aren’t offering lending as a service, perhaps you should consider it. After all, if you are not servicing your clients, then someone else will be. And the thing you don’t know is what relationships brokers have with other advisers that put your client base at risk.

At Centrepoint Alliance we already help with your advice business. Maybe it is time to speak to us about supporting your lending capabilities. You can find out more about Centrepoint Alliance Lending Solutions here.