Do you need a finance broker or a financial planner?

July 05, 2016
Nicholas Dennett

When taking the plunge into the world of home loans and property
investment, the challenge often lies in knowing which expert to
approach for help. Brokers and financial planners, although similar in
their professional outlook, cater to different financial endeavours.

Brokers that deal in home loans must be qualified and licensed loan
advisers with in-depth knowledge of home loans and options suitable
for a range of different financial situations. They negotiate with
lenders to arrange loans and help manage the process through to

 “When it comes to talking about a client’s debt structure or interest
rates, or the best way to set up a loan, it’s really something that
needs to be done by a mortgage broker who is qualified to give credit
advice,” says Luke Mellar, a lending specialist at Shadforth Financial

In contrast, financial planners assist with anticipating and managing
longstanding financial outlook. They help sort through and select
options for investment and insurance, with attention paid to
retirement planning, estate planning and investment analysis.

“Planners take care of more of the long-term, wealth-creation
strategy, as well as super and life insurance, and other sorts of
wealth protection insurances,” Mellar says.

A financial planner’s work is wide-reaching and important to your
long-term financial health and stability. Options relating to loans
and refinancing can only be recommended by qualified brokers.

There are some situations where it would be best to include both types
of financial professional. For instance, if your broker is helping you
refinance your loans in order to undertake a financial investment, a
financial planner can step in to help you to assess the best
investment option for you.

“There is rarely a time when I am dealing with a client, just on the
loan side of things, where I’m not thinking about how it fits with
what the financial planner is talking about,” Mellar explains.

“In terms of whether the client’s choice is a viable investment
strategy or whether it fits in with their long-term wealth goals,
that’s something that we absolutely have to refer back to the planner
to make sure that it fits in with their broader plan,” Mellar adds.

The answer? It depends on your situation - for loans, see a broker,
for investment advice, a financial planner. Of course, your broker can
always refer you to a planner if you need one.

Contact us to find out how we can help you secure property or commercial finance, and ask to recommend a financial planner we trust.

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