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The financial comparison website has partnered with Ray Hair’s Connect2Broker platform to connect home loan borrowers with mortgage brokers.
In its latest broker partnership, Canstar has partnered with Connect2Broker, a lead generation platform established by Local Financial Group director Ray Hair, to connect home loan customers with brokers.
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The broker platform, which was established by broking veteran and former PLAN Australia chief executive Mr Hair in 2020, aims to “address the biggest challenge brokers face in building their business: finding customers”.
Connect2Broker currently works exclusively with brokers’ aggregation under LMG and broker groups on an invitation-only basis.
The platform has now begun servicing customers seeking access to Canstar’s home loan offer with Velocity Frequent Flyer, the frequent flyer program of Virgin Australia.
As part of the offering, borrowers who are Velocity Frequent Flyer members can earn up to 125,000 Velocity Points if they source a home loan with the assistance of a broker in the Connect2Broker network via the Canstar Velocity Offer web page.
Borrowers must draw down an amount of $500,000 or more to be eligible.
(However, borrowers can earn 250,000 Velocity Points if they take out a loan of between $250,000 and $999,999 directly from an approved lender on the Canstar Velocity Offer web page or 500,000 Velocity Points for a loan of over $1 million).
According to Canstar, a family of four could fly economy return between Sydney and Nadi in Fiji for 142,400 points (plus $1,083.60 in taxes, fees, and carrier charges, payable in addition to points redeemed) or fly between Sydney and Gold Coast for 49,600 points (plus $255.92 in taxes, fees, and carrier charges).
Canstar Gold chief executive Paul Duggan commented: “The increasing cost of living, and 12 rate hikes in 16 months, has impacted the holiday hopes of many Australians, particularly those with a mortgage.
“To help more Aussies take a well-deserved break, Canstar is proud to have teamed up with Velocity to give its members the opportunity to earn a stack of Velocity Frequent Flyer Points and potentially secure a lower interest rate on their home loan...
“This partnership between two of the country’s most well-known brands provides Velocity Frequent Flyer members with the chance to take out a loan via the Canstar website including through a mortgage broker and earn Velocity Points either way.”
According to the Canstar Gold CEO, more than 2 million Aussies visit the Canstar websites each month. He said: “Offering the ability to earn Velocity Frequent Flyer Points as a bonus is the cherry on top for mortgage holders.”
Speaking to The Adviser about the partnership, Mr Hair, managing director of Connect2Broker, said that Canstar and Connect2Broker had been working closely to “build a home loan lead generation process that delivers home loan leads that convert”.
He stated: “With Canstar as our primary lead generation partner, we have the capability and capacity to build significant scale and provide benefits to all stakeholders.”
How Connect2Broker works
The Connect2Broker platform is a partnership model that takes a share of a broker’s commission upon settlement.
Mr Hair said that the model means that brokers do not need to pay a subscription fee or fee per lead, adding that the platform also “coach[es] and hold[s] brokers accountable to agreed service levels in relation to customer contact and service”.
It also surveys customers in relation to their customer service experience (whether or not they have settled a loan) to identify any process improvements.
While Connect2Broker currently works exclusively with LMG brokers, Mr Hair said that his goal is for the platform to be “aggregator agnostic” (subject to technology and commission system compatibility) as it builds scale and test processes.
When asked why he built the platform Mr Hair concluded: “It was true 25 years ago and it’s true today: it is not hard to write a loan, it’s hard to find a customer. Admittedly it is much harder to write a loan today than it was in the early days of mortgage broking, but the primary challenge for brokers starting out today is to build a client base. And to do so in a much more competitive and crowded market.
“Given my origins in PLAN Australia, I have a huge amount of respect (and insight) for the self-employed mortgage broker who, over 5–10 years builds a fabulous business with incredibly loyal customers. This is a journey I want to be a part of.
“Connect2Broker can partner these brokers by providing better quality leads to brokers who have the capacity to write one or more loans a week or fortnight.”
The Canstar partnership with Connect2Broker came as the financial comparison website expands its reach to the broker channel. It recently formed a partnership with broker platform Effi to trial a new Mortgage Broker Referral Tool on its website.
Speaking to The Adviser about the broker pilot last month, Mr Duggan, commented: “Brokers are an important part of the home loan ecosystem, with the current stats around 70 per cent of mortgages coming through brokers.
“We’re a consumer-first organisation and we’ve had a lot of conversations and completed a lot [of] research with consumers that indicate that they do want to work with brokers, not just direct providers. And so this pilot program enables us to see if going down the path of providing direct access to brokers provides a benefit for our consumers.”
[Related: Canstar trials broker offering]
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