Which mortgage aggregator for a new broker?
Selecting the right mortgage aggregator stands as a crucial decision for new brokers navigating the dynamic and competitive world of mortgage brokering. Acting as intermediaries between brokers and lenders, mortgage aggregators provide a variety of services that can profoundly influence a mortgage broker’s capacity for business growth and effective client service. Key factors that new brokers should consider while choosing a mortgage aggregator are examined here, with a focus on industry leaders and their distinct value propositions.
Refining aggregator value propositions
The leading aggregators are continuously refining their value propositions to retain and attract high-quality brokers. This involves offering ongoing value and service enhancements that keep pace with market changes and broker needs. Such an approach ensures that mortgage brokers are well-supported and equipped to face the evolving landscape of the mortgage industry.
The three most important services offered by aggregators have remained consistent: accurate and on-time commission payments, quality of lending panels, and IT and CRM support. These areas highlight the critical needs of mortgage brokers in their day-to-day operations while effective technology and product offerings are essential for aggregators to meet and exceed these expectations.
Broker loyalty and satisfaction
According to a survey by MPA, a significant 81% of brokers were extremely unlikely to switch aggregators in the next 12 months. This high level of loyalty underscores the satisfaction of brokers with their current aggregators and the services provided.
The role of aggregators in specialised lending
Top aggregators have a pivotal role in educating their brokers about specialised lending areas. This education is crucial as it enables brokers to diversify their service offerings and cater to a broader range of client needs. Aggregators gain a competitive edge by providing access to a variety of non-bank lenders, thus expanding the options available to brokers and their clients.
Resources for mortgage brokers
Building on this, the best aggregators can also play an instrumental role in assisting mortgage brokers with effective strategies for engaging customers, especially during fluctuating financial landscapes, for example strategies for brokers navigating the current climate of rising interest rates. These aggregators provide brokers with critical insights and tools to navigate these challenging periods. They can offer up-to-date market analyses, trend forecasts, and tailored advice on how to approach sensitive topics with clients, ensuring brokers can offer informed, empathetic guidance. Additionally, they may offer training sessions and webinars focused on client communication strategies and resilience-building in a volatile market. This support enables brokers to maintain strong client relationships and trust, even in times of economic uncertainty, positioning them as reliable advisors during all market conditions.
MPA’s 2023 Brokers on Aggregators Survey
The MPA survey evaluated aggregators across 11 categories, including commission payments, lending panel quality, IT/CRM support, compliance, BDM support, communication, training, additional income streams, marketing, white label offerings, and lead generation. The survey’s results offer a comprehensive view of the strengths and weaknesses of various aggregators, providing valuable insights for new brokers.
Survey results and implications
- Accurate and on-time commission payments: National Mortgage Brokers was the winner in this category, showcasing their reliability in financial dealings with brokers.
- Additional income streams: Loan Market excelled in providing brokers with opportunities for additional income, highlighting their commitment to broker growth.
- BDM support: Australian Finance Group stood out in this category, demonstrating exceptional support and resources for Business Development Managers, thereby enhancing broker engagement and success in their networks.
Choosing the right broker aggregator
For new brokers, the choice of an aggregator should be aligned with their specific needs and business goals. Factors like the size of the lending panel, technology support, and additional services like training and marketing support play a crucial role in this decision. It is also essential to consider the culture and values of the aggregator, when finding the best mortgage aggregator for you as these can greatly influence the broker’s work satisfaction and professional growth.
Case Study: Finsure
Finsure has established itself as a remarkable aggregator in the industry, gaining attention for its swift growth and widespread expansion. Achieving a significant milestone, their loan book soared to an impressive $100 billion, making Finsure the quickest in the aggregator sector to reach such a figure. This achievement is not just a testament to their financial prowess but also reflects their strategic acumen in understanding and capitalising on market opportunities.
The company’s foray into New Zealand marks a critical step in its expansion strategy, indicating its ambition to extend its influence beyond Australian borders. This move into a new market demonstrates Finsure’s confidence in its business model and its ability to replicate its success internationally. It also underlines the company’s commitment to providing broader opportunities for its brokers, allowing them to tap into an expanding and diverse market.
Finsure’s growing influence is also a reflection of the effectiveness and strength of its broker network. By fostering a supportive and resource-rich environment for its brokers, Finsure has been able to ensure that they are well-equipped to meet the needs of a diverse clientele. This has not only contributed to the company’s rapid growth but has also solidified its reputation as a leading aggregator that prioritises the success and development of its network of brokers.
Evolving broker landscape
The mortgage brokering landscape is continually evolving, and the role of aggregators in this ecosystem is more significant than ever. For new brokers, selecting the right aggregator is a decision that can define their career trajectory. By carefully considering the offerings, reputation, and alignment with personal and professional goals, new brokers can establish a solid foundation for success in the competitive world of mortgage brokering.