While you no doubt relish finding the right home loan for your clients, the mortgage broking business is a competitive space. Rather than seeing this as a challenge, consider it an opportunity to evolve your business.
Why diversify? Well, we all know it can be a hard road to land home loan clients in this environment. Some brokers might diversify to differentiate themselves, others might be seeking a new challenge. It’s possible that your style of service suits a different demographic, or it may be that the margins from different avenues are more attractive.
Here are four ways to diversify your business.
- Same customers, different dreams
If you’re happy having home owners as your bread-and-butter clients but want to add a little sugar, consider diversifying using the same customer base. Offering smaller loans for lifestyle purchases such as cars and holidays presents a ripe opportunity. You already have the client’s trust, so you can ask whether they have any other goals that may need financial assistance; this could push you out of pure residential mortgage broking.
This style of diversification is ideal for brokers who have built a rapport with their customers but are looking for repeat business in different segments.
- Property parallels
If property is your thing and you’re looking to branch out, consider adding commercial property to the mix. While you might be dealing with a different demographic and different loan structures, the main idea is the same, just with a faster pace and a more professional dynamic.
Consider this move if you want to build your B2B skills or extend your client base to include organisations and not just individual home owners.
- Crossover clients
You may well find that your home owner client is also a business owner, so your ability to offer commercial and asset finance is a bonus for them. Again, because they already trust you, you’re in a good position to offer your additional services.
Being agile can work to your advantage. A soon-to-be home owner with a small business might well choose you over a mortgage broker who specialises in home loans because you can address their spectrum of needs. The reverse is also true; business owners are often home owners, so if you can assist with commercial finance, they’re more likely to turn to you for their mortgage, too.
- Beyond lending
Many brokers find they want to provide a holistic financial solution to their clients, and loan products are just the beginning. Offering insurance, financial planning and superannuation management, especially with the rise of self-managed super funds, are all possible pathways brokers can take. This route is ideal for brokers who feel their skills are becoming a bit stale and they’d like to grow their knowledge and business laterally.
The combination of strong financial skills and attentive customer service makes brokers good candidates to add to their repertoire of home mortgages. Build your business and widen your client base by taking on a challenge that goes beyond bread and butter.
For more information on how PLAN Australia can show you different paths for your skills, contact us today.