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Income diversification options available to mortgage brokers

A hot topic in the mortgage broking industry at the moment is income diversification. How can brokers add additional income streams to their business? Many have suggested that brokers need to consider adding financial planning or risk writing to their service offering. Adding these services would increase income through additional business generated from these services.

ALCo has a different approach. It is ALCo's experience that brokers who try to become financial planners or risk writers will struggle to wear both ‘hats' effectively. Of course, it can be successful for some, but it isn't an easy road. Adding this service can result in difficulty with focus and often stretches the broker thin, not to mention the additional costs incurred, the need for double CPD points, software and compliance across two separate licenses.

We have been supporting financial planners, risk writers and accountants with mortgage brokering services for 8 years and we find that adding an additional income stream through referral agreements often works better. This way, the broker can add additional services to their offering by referring planning business to a planner and risk business to a risk writer and earn additional income by doing so.