NAB encourages aligned advisers to take up mortgage broking

Speaking to ifa yesterday, NAB executive general manager for wealth advice Greg Miller said the group had used its national adviser roadshow recently to help advisers understand the opportunity in servicing next generation clients.

As part of this, NAB has encouraged its advisers to start having lending discussions.

“What we are looking for advisers to do, and we're doing a fair bit of this today, is how it is that you get involved in the lending discussion with clients about their homes and about their investment properties,” Mr Miller said.

“We think that's really important. We think financial planners [can work out] not just what a client can borrow but what they should borrow in relation to their overall asset base.

“So we think advisers can add a lot of value in the lending discussion. We're encouraging a lot of our advisers to be involved in mortgage broking as part of their operations.”

Mr Miller believes offering mortgage broking services is one way advisers can tap into the next generation’s wealth, which is starting to grow.

“Generation X is not quite the same as Baby Boomers. Those 35- to late 40-year-olds have quite a few years of accumulation still to go and they are really a growing opportunity for advisers to focus on,” he said.

“One of their major issues is home loans and affordable housing and now we're going into investment properties. If that's a key part of those people’s lives then advisers need to play a part of that.”

Mr Miller’s comments come after ASIC announced it found conflicts of interests in the way mortgage brokers receive commissions.

Earlier this month, the corporate regulator said a broker could recommend a loan that is larger than the consumer needs or can afford to maximise their commission payment.

It found that both lenders and brokers do not make sufficient inquiries into consumers’ expenses.