The home loan industry is being flipped on its head, with lenders openly bidding against each other through on an online marketplace to win a would-be borrower’s business.
These so-called reverse auction sites are not especially new but their number is growing. Macquarie Bank-backed Lendi led the charge in 2013, followed by Flongle and a range of other platforms, including HashChing, LoanDolphin, Lodex and Joust. One of the newest players to enter the market, Loanbid, opened its doors in March 2018.
The basic principle of reverse auction sites is pretty straightforward. Loanbid partner Paul Dwyer says customers make one online application listing their details and loan requirements. Borrowers state whether they’re looking to buy a home or refinance an existing loan, nominate their preference for a fixed or variable rate, and tick off their choice of features such as redraw or offset.
From here, lenders and brokers assess the information provided and enter into a virtual auction, aiming to win your business with their best bid. All offers are shown on an online dashboard (lenders can also see what the competition is offering) and are ranked according to the total cost of the loan, with the lowest cost first.
“Borrowers need to wait for just 48 hours for lenders and brokers to come back to them with a loan best suited to their needs and financial situation, with the borrower to choose the right loan,” says Dwyer. He says borrowers are free to leave the process at any time, and there is no obligation to accept any of the loan bids.
It all sounds very appealing – quick, effortless and seemingly without the need for a make-or-break visit to a bank manager. “We put the power of choice back in the hands of borrowers, who can potentially access thousands of loans based on the information they provide through an obligation-free bidding process,” says Dwyer.
Diese Geschichte stammt aus der August 2018-Ausgabe von Money Magazine Australia.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent ? Anmelden
Diese Geschichte stammt aus der August 2018-Ausgabe von Money Magazine Australia.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent? Anmelden
Is the public market shrinking?
Australia needs a healthy stock market to give companies access to funds and to allow retail investors to build wealth.
India: three steps to transformation
Massive investment and extensive reforms turbocharge the economy.
The ballet of business
Changing direction, products, models and marketing is a hard task for a business. We chart what it takes to turn a business around, plus profile four successful pivots.
Save money and the planet
Could the high cost of living give us the incentive we need to reduce how much water and energy we use or waste? These eco-friendly household tips will help you do just that.
AI adoption is the new black
Artificial intelligence is set to reshape the commercial world, and small enterprises can’t afford to miss the boat.
Spam attack! Murky laws jam our inboxes
Unwanted marketing material is one of the pain points of modern life.
From rags to riches in style
Rich Tran sported a bowl cut until he was 14 years old and had no intention of becoming a hairdresser.
New work deals are killing the 'old' office
The Covid pandemic and the subsequent lockdowns accelerated the trend to more people working from home. It was a mixed experience.
Points taken: the truth about rewards
Can hopping between credit cards really boost your frequent flyer haul and give you cheap or free travel - or is it doing more harm than good behind the scenes? Money puts it to the test.
Shortcuts to own a home
Innovative ideas with a focus on low costs and sustainability could help solve the housing crunch.