Brokers from across Australia have shared their thoughts on how white-label mortgages are helping them and their clients.
Trilogy Funding’s Deanna Ezzy told The Adviser that white-label products help her find a better solution for her investor clients.
“I find that ChoiceLend’s Performance Plus servicing model and loan product is perfect for investors,” she said. “It allows investors to continue to invest, without hitting a servicing wall as quickly. The product is also very good, [has] low ongoing fees, a low interest rate and low establishment fees.”
Ms Ezzy highlighted that ChoiceLend – the NAB-funded white-label offered exclusively through Choice Aggregation or Choice Home Loans Broker – allow upfront valuations, which she said is important for property investors.
The Canberra-based broker said the white-label product also makes loan switches or post-settlement changes cheaper.
“Which is also handy for an investor as they quite often want to change their loans around,” she said. “Redraw is free, online banking is easy to use and the customer care line is also great to deal with.”
Sydney broker and Enrizen One managing director Trent Franklin has also seen the value in white-label products.
“I feel it allows for more innovation in the product as the white-label provider may be willing to provide the product in a way different to their existing portfolio, however they do not want it to cause confusion by being branded with their brand,” Mr Franklin said.
He said there will always be clients who are difficult to sell the white-label proposition to, but sees this reducing overtime.
Meanwhile, Mortgage Choice owner manager Tony Schelling, who is based in the Northern Territory, said while he offers white-label mortgages now, it took some time to initially understand the products.
“When we first looked at the white-label options for the NT, there were security restrictions from the funders of the product and the basic nature of the product offering made it difficult to offer the product,” he said.
“With our better understanding of the products offered and better understanding of the NT market by the funders, we’ve been more comfortable in promoting the offerings to clients.”
However not every broker is sold on the benefits of white-label products.
Vogue Financial Solutions director Kyle Marshall said while he has offered white-labelling in the past, he wasn’t convinced of its benefits to his clients.
“We found it not very viable so we don’t sell it,” he said. “We give clients more of a choice and variety in other products out there that can best suit their needs.”
Mr Marshall added that clients generally only require white-label products for one or two reasons.
“One is coming down to interest rate of affordability and two is the strategy – is the product going to suit their overall strategy and objectives?” he said.
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