Mortgage Brokers are often asked by clients buying real estate to develop a loan management program that takes into consideration all their cash flows. Unfortunately, the mortgage broker is not provided with sufficient information to accurately provide this information.
With the client’s increasing digital skills, there is an opportunity for Mortgage Brokers to embrace cash flow modelling software to demonstrate their recommended loans. While most Mortgage Brokers are not licensed to give financial advice, they can provide their clients with assistance in choosing the right loan to suit their personal financial situation.
With a program like Advice Online, a report may be generated an shared with the client in a secure client portal.
To do this the broker can seek information from their clients about all their financial and social situations such as family dynamics, health, employment and their risk tolerance to debt.
From the information provided by the client, this information can be imported into a financial plan and then the broker can optimize the loan strategy for current and future loans.
The result is the production of an Advice Record. However, Mortgage Brokers may prefer to rename this document a Debt Management Report.
To retain clients, the broker could also have discussions about future loans that may be required to purchase real estate. Australians love investment real estate and for many having a portfolio of investment properties would be a high priority.
Using Advice Online, the broker can set up a long-term plan to demonstrate how the property portfolio may be added to without exposing the client to excessive debt.
In addition, the broker can use Excel Tools to demonstrate the following:
- Yearly Amortization Schedule
- Debt Reduction Schedules
- Snowballing Debt
- Loan Tracker
Mortgage Brokers should reach out to Advice Online to access their password protected Resources where several Demonstration Videos, including one on Debt Management are included.
Glenis Phillips SF FIN – Designer of Advice Online
Disclaimer: Financial Mappers does not have an Australian Services License, does not offer financial planning advice, and does not recommend financial products.
