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ISCOVER
Staff Reporter
Connective has launched a new product under its white label offering that allows brokers to compete with any lender when it comes to price.
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According to Connective’s head of sales and business development, Michael Goerner, brokers can now adjust pricing, in respect to rates and commissions, in order to cater for the varying demands of their business and the borrowing needs of their clients.
“Connective Home Loans' flexible pricing was borne out of recognition that every brokerage is different and so are the needs of their clients,” Mr Goerner said.
“The product allows brokers to determine the weighting of the upfront commission, trail and interest rate, and tailor a solution that works for them and their client.
“Our members can now set a rate that’s competitive for their client and then custom build their commission around that rate.
“For more established brokerages, the annuity income from trail and the value it builds in their business is important. These brokers now have the opportunity to dial-up trail and scale down the upfront commission, while still delivering a competitive wholesale rate to their clients.
“Conversely, a brokerage in its infancy relies on upfront commission for cashflow so they may elect to forgo the trail commission and instead boost the upfront.
“The product also promotes fee-for-service as brokers can offer clients an even sharper wholesale rate by substituting the commission with a fee, which can be justified by years of interest savings for the client. Brokers can also take advantage for their own loan, or offer ‘mates rates’ to staff, family or friends.”
According to Mr Goerner, Connective’s fee-based structure enables the aggregator to deliver this white label offering.
“The revenue sharing models of traditional aggregators prohibits them from offering a flexible pricing product of this nature as they will bleed their primary source of income if brokers elect to take a discount on commissions in order to deliver clients a lower rate,” he said.
“Connective Home Loans' flexible pricing has been developed to place our member brokers in control. The market is becoming increasingly competitive and this product is our latest initiative to arm our brokers with the tools to stay ahead of the pack.”
