Resi adopts two brand strategy
Resi Mortgage Corporation is restructuring its business and introducing a separate brand, Olympic, which will be exclusive to mortgage brokers.
Thursday, November 10th 2005, 5:47AM
by Jenny Ruth
Director Ros Kirkland says the company had experienced some confusion as to whether a customer had come to it directly or through a broker.
She believes most brokers will opt for her company's wholesale option under which the broker decides what rate to charge their clients and how much brokerage they will receive, within set parameters.
However, it will still offer a product with a set brokerage rate.
Even though they don't make as much money if they take that option, "some brokers don't want to have to ask for an application fee. They don't have to answer awkward questions," Kirkland says.
The original Resi brand will become a retail brand only, available only to customers who contact the company directly either at its Auckland office or via its website.
Resi is also looking at opening offices elsewhere in areas where brokers aren't well-represented or where few brokers deal with Resi.
Resi has operated in New Zealand since 1999 as a 50/50 joint venture with Resi Home Loans in Australia. The two-brand strategy applies only in New Zealand.
Resi in Australia has only ever dealt directly with its customers, not through mortgage brokers, Kirkland says.
Kirkland says the last thing Resi wants to do is to compete with brokers. "We're not about trying to take business away from brokers."
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