Mergers and acquisitions expand North Shore mortgage business

Takapuna-based mortgage company adviceHQ is expanding.

Wednesday, May 1st 2024, 11:04AM

In a first move, Michael Williams of Real Mortgages merged his business with adviceHQ, owned by founder and adviser David Green.

Williams, a 25-year veteran mortgage adviser and property investor, was Green’s mentor when he left banking to start his mortgage-only business in late 2018.

AdviceHQ became a full service business covering mortgages, insurance, commercial and business loans, financial advice and KiwiSaver.

Now, Green has bought the mortgage business of Loan Market adviser Craig Pettit, who has retired. The company has three advisers – Green on mortgages, KiwiSaver, business and commercial loans, Williams on mortgages and Ben Presling on mortgages, insurance, KiwiSaver and staff support.

Green had looked at half a dozen opportunities over the years. A number had different service lines that he walked away from. “These two are the first I have actually done and they fit in with the service we want to offer.”

Williams supported Green through his first year in the mortgage business as he got to grips with the intricacies of mortgage lending. “Even though I had been in the banking industry for 20 years, banks still require people moving into mortgage lending specifically to have a mentor.”

Green says they had always thought about doing business together. With Real Mortgages’ business gradually closing down after the departure of an adviser and the founder/director moving overseas and no longer closely involved, Williams was left on his own which culminated in the decision to merge with Green.

Green says Williams became a one-man band with the accompanying trials and tribulations. Merging benefitted both sides, Green got Williams’ client base while Williams became part of a wider full-service business and could take a holiday knowing his clients would be looked after.

It took a year for Green to get the green light to buy Loan Market mortgage adviser Pettit’s business. His son James, who was client support, has joined AdviceHQ.

Pettit says that announcing his retirement from Loan Market last month, after 15 years as a mortgage adviser and 34 years with Westpac before that, was bittersweet but it was time to pass the baton to another capable professional.

Green hasn’t divulged what he paid for the business, but says it has a sizable existing client base. “It’s a mortgage-only book, which we will look after and also be able to offer clients advice on insurance, KiwiSaver and commercial loans.”

With the company expansion, he says new opportunities will come at a time when relationship banking in favour of cost-effective digital banking has taken the human element out of lending.

He says borrowers like the stability of the big banks but not the fact they are owned by Australian banks and reporting billion dollar profits.

His focus for the next few months is bedding the new businesses into his existing company and making sure clients are offered a high level of independent financial advice. “We think we are filling the space where banks no longer provide that high level of service.

Green says he is open to further expansion whether through acquisitions or developing organically.

“It's a multibillion dollar market every month. “We're not trying to take over the world, we just want to make sure we get our fair share of it and target those people that want the service and values we offer.”

Tags: mortgages