Planners get loan tool
Threedealer groups will make the move into mortgage loan originating when the Efinance group rolls out its loan service in September.
Efinance is the brainchild of Bruce Sherlock who was involved in the formation of the Lion Insurance Group in the 70s and Liberty Financial in the late 90s.
Sherlock says the new loan product will be pitched primarily at planners allowing them to add more services to their businesses.
The service will operate from the web viaefinance.com.auand access 28 different lenders including five banks with planners either able to access loans online with clients, outsource the loan searching to Efinance or have the client fill out the necessary forms and submit them to the planner.
Sherlock says that while the system is virtually paper free, advisers will still be able to keep an electronic audit trail for reviews and compliance purposes and be able to compare loans to see if clients have the correct product for personal or business use. Sherlock says this is an attraction as most advisers are loathe to take on more paperwork as part of generating more business.
The provision of loans through planning practices will, according to Sherlock, generate 0.6 per cent commission on each loan.
Sherlock says the moves fits in with the educative role advisers already have with investments and would serve as a springboard into providing risk insurance advice.
AUTHOR
Jason Spits
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