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
An outrageous, beautiful monopoly
Telstra's mobile business is a cash machine with few competitors, giving it the highest returns in the world.
Drop the anchor to judge value
Buying and selling decisions should be based on where a stock price is going, not where it has been.
Powering the AI boom
Beyond the software and chipmakers, where will the energy come from?
Get into life
Tucked inside super are products that can protect you from life's inevitable uncertainties.
Paths to home ownership
Taking the road less travelled can sometimes deliver unexpected benefits.
Sold! Quick ways to add value
Small, strategic changes can have a big impact on the look and feel of your home. And get you a better price on auction day.
Money lessons the kids need to know
Your children can learn a lot from your past money mishaps. Here are eight financial conversations I have had with mine.
Property-investing rules: are they likely to change?
The pressure for the government to curb the tax benefits of tax concessions, such as negative gearing and the capital gains tax discount, is unrelenting. Most recently, independent senators David Pocock and Jacqui Lambie proposed five options for paring back investment property tax concessions, with savings to the Federal budget of up to $60 billion over the next decade.
What's love got to do with it?
A rollercoaster of emotions could be driving poor crypto behaviour.
Are we ready to be cash-free?
Saying goodbye to our piggy banks too soon could leave small businesses in the dark when problems arise.
