Where to for mortgage advisers?

As trail commissions are removed by Westpac and AIA and rumours another bank will do the same, leaving just one bank paying trail, the dynamics of running a mortgage advice business are changing.

Mortgage businesses now have little of value to sell. “Nobody is going to buy a mortgage advice business customer lists – the value of trail books have limited to near zero value from a credibility perspective,” David Cunningham, Squirrel Mortgages chief executive says.

AdviceHQ founder and director David Green The New Zealand market is definitely changing and advice business models will have to change with it.

Major banks are changing their model by pushing mortgage advisers to just a distribution channel rather than having relationship banking.