Survey reignites debate on broker diversification

The quarterly survey also revealed that 23 per cent of Australians expect to cut back spending on their children in retirement, hinting that people need to start thinking about growing their wealth sooner rather than later.

Asked if this gives brokers more of a reason to diversify and move into operating within the financial planning space, Finance Made Easy director Tony Bice agreed.

"I'm a financial planner, and that's exactly what I do it for," he said.

"Being a financial planner as well as a mortgage broker means there is a whole new opportunity to talk to clients about their future, and that involves things like superannuation, risk, and building an investment property using the equity from current property to get where they need to be in retirement."

Mr Bice said that more and more brokers are realising the opportunities that come about by diversifying their business and getting into financial planning by being able to "spin off that" and write more mortgages.

"Those that are getting on board and doing it are going to be the ones that write more business," he said.

However, although MLC's survey findings may give brokers impetus to expand into financial planning, Mick McLure, managing director of Buyer's Choice Home Loan Advisory Service, said he is not a "believer" in broker diversification.

"I understand it from their point of view – wanting a mortgage broking string to their bow, but if you're a good broker you have no time for anything else. There are not enough hours in the day to do both," he said.

"Financial planning requires a different mindset and a different sales pitch. A mortgage broker is a reactive person who is there to help people achieve their goals and fulfil their desires or needs."

"We are not seeing a trend of brokers becoming financial planners. In fact, the reverse is the case – planners are wanting to become brokers."

[Related: Is financial planning your next move?]