Growing interest in self-directed products has also been a likely factor in the diversification, said Brown.
“SMSF (Self-Managed Super Funds) predominantly has a debt focus because of borrowings so generally that’s a service they now need to fulfil. The annuity income that mortgages provide also makes up for some of the annuity income that they’re going to lose going forward for superannuation.”
The fact that mortgage broking clients make for good potential financial planning prospects is a further reason why the move makes good sense for planners, he said.
Brown said this is a trend he expects to continue into the near future, creating overall positive outcomes for the broking industry.
“Whereas in the past financial planners literally just referred [mortgage clients] to a bank, now they’re going to write them themselves. So it’s less business the banks are going to get and more the mortgage broking industry is going to get.
“It’s a really interesting area to watch, especially in the next one to three years we’re going to see a lot of changes which are all for the better. Any improvement in the professionalism in the industry and consolidation in the industry into larger groups only helps lift the image of the industry – so I’m all for it.”
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