The Mortgage Choice franchise has now set up a strategic partnership with insurance broker Lifebroker, just a week after the company embarked on a re-branding exercise.
Meanwhile, in the mortgage industry, Aussie Home Loans has posted record lending levels after acquisition of Wizard Home Loans from GE Money.
Mortgage Choice says the decision to partner with Lifebroker is an attempt to expand its services for franchisees and customers, and is part of the company’s branding re-launch.
Lifebroker offers an online-based service for insurance policies from 13 major companies. Mortgage Choice senior corporate affairs manager Kristy Sheppard says the partnership is a “diversification of our offering”.
“In the last few weeks, we’ve refreshed our look and feel for our brand, and this is designed to really get us back down to the basics and uncover the company’s essence as a mortgage broker.”
“But at the same time, we are diversifying. It’s important for us to give a range of lifestyle solutions in the one visit, so we’re looking at how to do that more with Lifebroker.”
Sheppard says the decision to partner with Lifebroker will help deliver additional income to franchisees during difficult times.
“We’ve experienced commission cuts that are now coming into play. And although interest rate cuts have seen additional income flow through, any new source of income is welcome for franchisees because they need to add to their bottom line. We’re working closely to promote Lifebroker as much as possible to the network via communications and workshops they’re getting involved with.”
“We are embracing them whole-heartedly.”
Meanwhile, Aussie Home Loans has doubled monthly lending value to over $2 billion in the last two months due to the take up of the Government’s first home owner’s grant, with its total loan portfolio now at $32 billion.
But the company is also attempting to diversify its own business by increasing revenue contributions from products, including credit cards and insurance products to about 20% during the 2009-10 financial year.
It is also looking to expand into insurance.
Executive chairman John Symond told The Australian Financial Review that the diversification strategy comes after the major banks have cut commissions.
He also says he is concerned that volumes will disappear after the first home owner’s grant boost expires.
“I’ve got serious concerns about property values coming off and leaving some first home buyers exposed,” he said.
But despite the changes in revenue contributions, Symond said the company will stick to its core offerings in home loans rather than move into other financial services.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
