The Australian mortgage market is as diverse as the people who call Australia home, and brokers know the ability to develop a tailored offering is key to growing their business. Whether you’re servicing an investor, refinancer, upgrader, first home buyer, or a renovator – they each have specific wants and needs from their loan. It’s definitely not one size fits all.
When we consider that different loan types suit different age groups, different living situations and even different attitudes to money, it becomes clear that growth oriented brokers need to have a diversified toolkit of loan products at hand. White-label loans are an important option to consider, and one that some brokers overlook.
So why exactly is a white-label option an important tool to keep in your kit?
According to the Mortgage and Finance Association of Australia, and Ernst & Young’s research paper, ‘Observations on the value of mortgage broking (PDF)’, brokers are proficient at matching the right product to their customers’ needs. The research shows that nearly half (47%) of customers believe they can get access to a wider range of products through a broker versus any other channel.
White-label loans are a testament to this as they are exclusively available through the broker channel. This means the broker, rather than the lender, becomes the face of the loan. In a paradoxical way – the lack of brand on the loan helps enhance the broker’s own brand, by providing customers with something they can’t access themselves anywhere else. This strengthens the broker-customer relationship and also builds loyalty.
A common misconception is that white-label loans don’t come with the same support as their branded counterparts. In fact, white-label loans generally come fully supported with a range of marketing collateral, including brochures and websites to help clients better understand what white-label is and why it may work for them. These features can help with the sale process, and build customer confidence.
There are of course a range of white-label providers to choose from in the market, but when working with Advantedge, for example, brokers have access to a scenarios team with staff who hold full credit authority. This means brokers can gain certainty on whether a scenario fits with the lender’s appetite prior to submitting. Similarly, credit managers are accessible to brokers through white-label – real people will be making decisions and they are available to discuss the application with the broker.
White-label customers are provided with the essential loan features they are likely to actually use. They have access to redraw facilities and can choose to have debit cards and internet access. With competitive interest rates, these fit-for-purpose products can save customers considerable money over the life of their loan.
Interestingly, as the white-label industry matures, we are seeing a shift in how these loans are used. Traditionally, the white-label target market has been the ‘big core’ of lending within Australia, the mum and dad borrowers. But now brokers who are more familiar with white-label are securing more complex transactions, involving high-value loan amounts, multiple trusts and companies, with white label too.
White-label has come a long way since its beginnings in the industry just a few years ago – from a new concept that brokers were curious about, to a disruptive force that’s become one of the top products searched on many lending panels. In 2014, only 35% of brokers in the market had access to Advantedge white-label products, but by the end of 2015 this figure had grown to around 85%!
For more information about how to harness white-label to grow your business, contact a PLAN Australia BDM.
Advantedge Financial Services Pty Ltd (Advantedge) ACN 130 012 930 Australian Credit Licence 391202 is a major participant in the mortgage market and has been delivering competitive and innovative home loan products to Australians for over 20 years. Advantedge is part of the National Australia Bank Group (NAB) and is Australia’s leading wholesale funder and distributor of white-label home loans.