Finance groups are the best choice for people wanting to obtain a home loan, or refinance an existing loan. To offer a bank’s products, finance brokers must first be accredited to a particular bank. They can then sell the banks products, and the bank is placed on what’s called the broker’s panel. The broker accreditation requirements vary from bank to bank, however, most banks require a minimum volume of loans to be achieved and maintained.
This is one of the main reasons why many banks don’t accredit individual brokers, and instead fill their panels with brokers from finance groups who are able to demonstrate a consistently high volume of loans. Additionally, brokers associated with finance groups are more likely to be required by the group to be suitably qualified – another reason why they are preferred by banks. Many finance groups require their brokers to be accredited under the National Consumer Credit Protection Act, have a qualification in Financial Services Mortgage Broking and be a member of one of the professional finance brokers’ associations.
When reviewing who’s on the panel of a broker associated with a finance group, there is a greater likelihood of finding a much broader range of lending institutions or access to products which may be limited to only a select group.