It is not always easy to start a business. Often, the most important things are overlooked while others are done merely to meet the regulatory requirements.
However, only successful mortgage brokers know the power of choosing the most suitable aggregator. The right broker aggregator can fit appropriately into the existing business model.
What is an Aggregator?
Aggregators play a crucial role in the mortgage broking industry. Several years back when broking was still new, an aggregator would simply help brokers so they could get a panel of lenders for residential properties.
During that time, there were only a few lenders that were willing to accept brokers and provide them with direct assistance. Therefore, potential homeowners found it incredibly difficult to get a complete product suite.
Times have changed dramatically. Lender panels are still easier to access, thanks to an aggregator. However, aggregators now have a ton of other services for brokers.
Aggregators are also known as a dealer group in Australia or even a franchisor. While the broker mostly works as the middle-person between the borrower and the lender, an aggregator has a similar job.
The distinct difference though is that aggregators serve as an intermediary between the brokers themselves, such as Quantum Finance, and the bank.
Apart from that, aggregators also provide a multitude of other services, including:
- A customer relationship management (CRM) system
- A platform for comparing different types of loans
- Marketing support
- Lead generation
In other words, an aggregator works as a third-party channel with a brokerage firm’s lending panel. Most of the time, aggregators would have at least 15 lenders. A good broker, meanwhile, should have at least five to ten lenders on the panel.
What is the Importance of an Aggregator?
As mentioned, an aggregator connects brokers with lenders or banks. It is easy to ask yourself why not just access the lenders on your own, right? In reality, it does not work as straightforward as you think.
Lenders have diverse compliance requirements. Plus, they have a high volume to keep up with, usually on a daily basis. Even an excellent broker will have a hard time meeting these requirements alone.
Banks essentially provide the home loan product for the borrower. However, they first want to know whether or not the broker is capable of bringing in good-quality borrowers regularly.
Also, some aggregators have not tried investing enough. Therefore, the support that some brokers get, along with the services offered, does not meet the business goals. However, the right aggregator can jumpstart a mortgage broking service.
Aggregators perform many jobs for both the lenders and the brokers. They also manage trail and upfront commission payments. This way, brokers will get their payments on time and usually in full.
An aggregator can also host Continuing Professional Development (CPD), which aids brokers in meeting specific continuing education requirements.
Mortgage brokers, especially those who are just at the beginning stages, will want to get paid on time. Regardless of whether the aggregator offers a fee-based or commission split model, proper commission management is more critical.
Brokers want to ensure they get whole benefiting from being part of a large group. There is also the opportunity to work with an extensive lending panel and attractive products.
Working with a good aggregator will make a broker’s job much more comfortable. However, the first step is to look for the best option around. There are several mortgage broking aggregators in Australia. Most of them have the same primary requirement where the broker should at least have two years of industry experience.
Why PLAN Australia is The Best Choice
PLAN Australia has been consistently named one of the most outstanding aggregators in the country. The company was established in 1999. Since then, it has become one of the most prominent aggregation groups in Australia with more than 1,600 members. These brokers continue to aid thousands of Australians so that they get the right loan for the home of their dreams.
PLAN Australia focuses on helping and guiding business owners so that they can grow and stand out in the world of broking. The goal is to assist everyone willing to add debt services to their business products. It is why established brokers and other professionals have worked with the firm since its inception.
As a true partner of mortgage brokers, PLAN Australia uses its experience and expertise to understand the business model from top to bottom. With such an understanding, it becomes easier to transform the current strategy of the business while allowing the brokers to connect with the right people. It is where an action plan is shaped to face the growth trials of a mortgage broking firm.
Unlike other aggregators, PLAN Australia is all about transformation that works for the client. It is why Quantum Finance Australia chooses PLAN Australia. There is a dedication as the aggregators work with brokers, creating emphasis on the current business challenges.
It’s no secret that brokers have to deal with the competitive environment almost daily. But PLAN Australia is always ready to provide support and backing.
Additionally, there are other services offered, including accessing a wide range of over 50 lenders for both residential and commercial loans. With a comprehensive product selection, finding and keeping clients is not as hard as it looks.
The company has professionals with ample years of experience in the industry. Established brokers, sub-aggregators, businesses, and accountants trust PLAN Australia and nothing else.