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By: Staff Reporter
Licensed Finance Brokers of Australia (LFBA) is offering brokers who join its aggregation platform the opportunity to take a stake in the company.
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The aggregation group, who works in strategic alliance with Firstfolio, is the first company to offer brokers the opportunity to share in the financial benefits of the business.
LFBA founder and managing director Julian Mitton said consolidation across the sector has seen many of Australia’s leading mortgage broking groups bought out by larger financial institutions – leaving the door wide open for mortgage brokers to band together to secure their share in the bigger financial rewards available.
“With about 40 per cent of home loans written by mortgage brokers, we wanted to find a way to harness this bargaining power and share the collective financial benefits with those who actually do the work,” Mr Mitton said.
“Brokers normally earn nothing when an aggregation or franchise group is sold to another financial institution while the business owners become millionaires. We want to change that.”
According to Mr Mitton, more and more mortgage brokers are shopping around for a better aggregation deal.
“Since the financial market recovery, Australia’s mortgage brokers continue to be squeezed. As bank profits grow, commissions are still shrinking and brokers are starting to take action and are looking for a better deal,” he said.
“The time has never been better to launch such a competitive broker offering.”
Firstfolio will support the company through its wholesale lending program and lender agreements.
“We are seeking rapid growth of our wholesale lending program and LFBA is a good fit with these ambitions,” Firstfolio chief executive officer Mark Forsyth said.
