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Explore the connection between accounting and mortgage broking. Discover how accountants are taking a share of the growing mortgage broking industry.
5 reasons why accountants consider mortgage broking
13 March 2023
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4 minute read
Mortgage broking is a well-trodden path for accountants looking to diversify their business and offer their clients a holistic range of financial services under one roof.
In our free Accountant’s Guide to Mortgage Broking, we cover a lot of ground on how an accountant can build a broking business that compliments their existing service offering and sets them up for financial success.
In this article, we talk about the 5 reasons why accountants are diversifying into mortgage broking.
1. You’ve got the customers
As a successful accountancy business, you are already in an advantageous position. You’ve already built a customer base from scratch – a challenge that all fledgling businesses have to overcome.
Many of your customers have financial needs that require multiple services. By diversifying your business, your team can work together for clients, identify new opportunities for them and make them less likely to take their business to a ‘one stop shop’. For example, a client looking to acquire their long-term family home and rent out their first property, could become both an accounting and mortgage broking client.
2. Your customers want it
Let’s face it: your existing client base already sees you as the financial expert. You’ve already spent a great deal of time nurturing relationships with your customers through your existing service offering and as time has gone by, you’ve gained their trust.
Your customers are looking for the best experience possible. They will benefit from a relationship with one business that offers multiple services, rather than multiple relationships with different businesses that only provide one service. You are then in a position to provide a comprehensive service that your customers are generally grateful for.
3. The opportunity is here right now
Mortgage brokers are now facilitating seven in 10 of all new residential mortgages and growing, mortgage brokers settled over $355 billion in residential settlements in the twelve months to March 2022 and 29% of all mortgage brokers are now writing commercial loans*.
The broker channel is now the channel of choice for consumers. And with opportunities across both the residential and commercial finance markets, accountants are uniquely situated to take a share of this growing market and industry.
4. Your business is more secure
Complementing your core offering of accounting with mortgage broking can be a powerful move that futureproofs your business. Your clients will already have the confidence and trust in you as a business and building a broking arm to your portfolio will deepen this.
Having a team of financial professionals creates a holistic business model around your customer, which you can offer to your existing clients without having to refer them on to others.
5. You can drive additional revenue
By expanding into a new area for your business, you will be adding an additional income stream. The key is to make your business profitable. This profit is, of course, critical, enabling you to scale and grow your business.
Moving into the realm of mortgage broking is a solid growth opportunity for your business, which could be through one of three pathways:
- Building an adjacent business to expand into new areas,
- Creating a joint venture (JV) to better serve your customers, or
- Becoming a broker yourself and boosting your personal income.
Thinking about becoming a broker? Looking to explore a broker business relationship? We can help!
If you’re interested in our free guide to mortgage broking for accountants, then why not contact us for more information about how we can support you on your journey.
Remember you can always reach out to Them Lam, our National Manager of Recruitment and Partnerships for a chat here:
*Source: MFAA’s Industry Intelligence Service – 14th Edition - October 2021 – March 2022.
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