There will never be a product that suits all borrowers – so whom will a white label product suit? The Adviser investigates
While the white label solutions provided by many of Australia’s aggregators are well priced, they won’t be appropriate for every borrower.
As Advantedge’s general manager for distribution, Brett Halliwell, explains, the PLAN Lending, ChoiceLend and FastLend products are quite straightforward.
“These products don’t come with a lot of bells and whistles,” he says. “That said, they are competitively priced and we understand that many borrowers are seeking a cheap home loan rate.”
According to Mr Halliwell, white label products will also suit borrowers who require a fast turnaround time.
They may be time-poor or they may have already settled on a home and so require a quick decision on finance.
Through white label solutions, brokers have direct access to the product underwriters, which helps speed up the process.
If a loan isn’t going to fit, explains Mr Halliwell, an assessor will pick up the phone, speak to the broker directly and make them aware of the situation.
Of course, it is not just borrowers who are looking for a quick decision or a cheap rate who will love a white label solution.
According to Mr Halliwell, the white label products offered by Advantedge will also suit any borrower who wants the safety of a big lender but the flexibility of a smaller lender.
“Borrowers want to have confidence in the lender they are dealing with,” he says. “The Advantedge solutions can provide them with that because they are funded by National Australia Bank.”
So, if white label solutions such as those offered by PLAN Lending, ChoiceLend and FastLend can suit an array of borrowers, are there any borrowers for whom it would not be possible to find an appropriate white label product?
“Of course,” says Mr Halliwell. “No one product will ever be all things to all people and the white label solutions don’t try to be.”
Some borrowers will want their home loan to come with specific features, such as an offset account, and white label solutions do not cater to this.
“The white label solutions offered by Advantedge do not come with an offset account, so they are not going to be the best solution for every borrower,” Mr Halliwell says.
“In addition, some borrowers may like their home loan provider to have a branch network that they can visit should something go awry or if they have any questions in the future.”
In some instances, they may be looking for an integrated product. They might want all of their accounts – including savings, transactional and home loan accounts – with one lender.
Eastern Financial Solutions’ director Greg Nolan says the white label solution offered by FASTLend will suit “generic borrowers”.
“These products are certainly not a ‘one size fits all’ sort of solution,” he says.
“The product does not have [self-managed super fund] or [National Rental Affordability Scheme] capability. In addition, the product doesn’t suit borrowers who want to buy a small apartment, and sometimes you can have difficulty obtaining finance for self-employed borrowers who only have one year financials.
“If you listen to your clients, listen to their needs and understand exactly what they are looking for then, in some instances, the white label product will be right for them.”
Mr Nolan warns that it is important for any broker who is thinking of writing one of their aggregator’s white label products to first understand its nuances.
Those who understand the product’s policy will find it easy to write and sell to borrowers because it is similar in many ways to the products offered by the majors – a sentiment Corporate Finance & Leasing’s director, Jeff Messer, agrees with.
Understanding a product’s intricacies is not hard where there is a good team of BDMs, he says.
“I write white label products through PLAN Lending and I have to say the BDM team is fantastic. They often come out to my office for a chat,” he says.
“They don’t just try and push a product because they understand there is a client at the end of it all.
“They work quickly and will immediately let me know if the loan isn’t going to fit with the borrower.”
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