Login
ISCOVER
Two brokers spoke to Elite Broker about how and why they chose their respective broker models, and how it has benefitted their businesses.
HT Capital director, and strategic finance consultant Michael Tait opted for an independent group when he decided to switch from working in the mining industry to working as a mortgage broker.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
The group aggregates through PLAN Australia but it also chose Buyers Choice as its sub-aggregator in order to reap the benefits of both an aggregator and a sub-aggregator.
Speaking on Elite Broker podcast, Mr Tait said that HT Capital benefits not only from the support and professional development services offered by PLAN Australia, but also from the additional support and professional development opportunities presented by Buyers Choice.
Commenting further on the arrangement, Mr Tait said: “I think the other key benefit that we’ve seen from those guys in the last 12 months or so [is that] they’ve taken on their own ACL (Australian credit licence), which means that as a corporate credit representative with credit reps in our business working through the Buyers Choice licence, because they’re a smaller group, they understand our business in more detail.
“They’re looking after a smaller number of brokers than our previous licensee. We’ve got a bit more flexibility with them.”
Mr Tait added that while his business is still required to meet all the requirements stipulated by the Australian Securities and Investments Commission (ASIC), it has the flexibility to grow in a manner that suits the staff.
Another benefit of this model adopted by HT Capital has been that along with access to a broader lending panel, Buyers Choice assists HT Capital with recruitment, as well as avenues to develop the brokers it may be mentoring.
For example, the business recently recruited a treasury and markets consultant (who is not a credit representative) to assist with the business’ larger commercial clients.
The consultant has been able to provide advice to the business around areas such as what professional indemnity insurance covers, where the business might require separate policies, and how it could manage credit guides and pricing policies.
“They’ve given us the flexibility to work proactively with us to help us realise an avenue that we believe is going to take our business to the next level,” Mr Tait said.
Opting for the franchisee route
On the other hand, Brisbane-based Mortgage Choice broker Caroline Jean-Baptiste told the Elite Broker podcast that she chose to become a franchisee of the major brokerage because of the assistance it can provide to her.
“I really value having everything done for me,” Ms Jean-Baptiste said.
“I’ve got the flexibility to go out and do it myself but if I don’t have time to develop more intel or just think about a new marketing campaign I’ve always got somewhere to go.”
Ms Jean-Baptiste said joining Mortgage Choice as a franchisee has allowed her to access “out-of-the-box” solutions when, for example, one of her staff members have departed from the brokerage.
Furthermore, she said that the “burden” of the new best interest duty for brokers has been reduced for her as a franchisee.
“I know that they’ve [Mortgage Choice] got my back and I know that they’re doing everything they can to implement it in our systems so that it’s going to be a really easy transition.
“That’s what I like about a franchise model. There’s always a back-up, always someone you can call and you can pretty much just plug and play,” Ms Jean-Baptiste concluded.
To listen to the full Elite Broker podcast with Michael Tait and Caroline Jean-Baptiste, click here:
[Related: Choosing the right model for your broking journey]
JOIN THE DISCUSSION