Mortgage Choice has launched a white-labelled vehicle loan, available to all its mortgage brokers.
The loan, launched at the broker's national conference, carries a fixed interest rate of 9.95% and is available to both personal and business customers purchasing vehicles from a licensed dealer.
For personal customers, the loan will cover new, used and demo passenger vehicles, 4WDs, people movers up to seven seats and utes up to one tonne. Commercial customers will be able to purchase light commercial vehicles up to 2.5 tonnes.
Mortgage Choice CEO Michael Russell said the product would offer greater range to the company's brokers.
"This is simply another step in the execution of our diversification strategy. Our brokers will treat the new product as they do any other on the panel," he said.
Russell indicated that vehicle finance often went hand-in-hand with housing finance, presenting an opportunity for brokers.
"Not only do Australian households purchase or replace a car every three-and-a-half years on average, they generally replace one within six months of changing or refinancing their residence," he commented.
Mortgage Choice spokesperson Kristy Sheppard told Australian BrokerNews the company’s strategy of diversification will benefit brokers in a period of weak mortgage demand.
“Our primary focus remains home loans, but with Australians becoming increasingly time poor and more trusting of the mortgage broker value proposition there lies great opportunity in extending our duty of care across a wider range of consumer finance products. Cross-selling also helps to create a 'stickier' customer, a more satisfied customer and it raises Mortgage Choice's profile across other product areas, which is even more important in today's subdued housing finance market,” she commented.
The company has also launched a consumer-focused iPhone app, focusing on home loan borrowing, repayment and stamp duty calculators. The application will also serve to direct consumers to local Mortgage Choice franchisees.