BT dealer groups step into mortgage advice

BT-owned dealer groups Securitor and Magnitude are among the latest to formalise a relationship with a mortgage broker as they seek to expand their potential revenue streams and broaden services to clients.

Australian Finance Group (AFG) has been named the provider of mortgage aggregation services to advisers under the Securitor and Magnitude banners.

The move, one also taken by groups such as AMP in recent months, is aimed at tapping into new revenue streams and attempting to shore up business sustainability in advice practices (many of which face the risk of an ageing client base). The advice industry has struggled to create a service proposition for younger clients without large asset bases.

BT Financial Group head of dealer groups, Neil Younger, said advisers should be identifying that with house prices and interest rates rising, younger clients could benefit from advice about how to structure and manage debt.

The statement from BT Financial Group said Securitor and Magnitude advisers wrote or referred more than $270 million in mortgage business in the last financial year.

Under the new arrangement, AFG will provide services to advisers including mortgage product comparisons, compliance and marketing support, business management, online application software and competitive remuneration terms from a panel of lenders.

A practice development team will work closely with advisers in the implementation of the new initiative, Younger said.