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After the launch last month of a startup that lets customers bid for their one-off fee, another platform that allows bidding in its process joins the online mortgage space.
This time, it is the lenders that bid against each other to win a mortgage loan.
Announcing its launch yesterday, Loanbid promises to empower borrowers with access, choice, and competition to secure a loan from one website.
The platform aims to provide a launch pad for borrowers to connect with lenders and brokers across Australia.
Its process involves filling out an online application where borrowers give their details and requirements. Lenders and brokers then assess the information and enter a virtual auction to win the loan with their best bids.
“Borrowers need to wait for just 48 hours for the 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,” said Loanbid partner Paul Dwyer, formerly a banker at St George.
The company said borrowers remain anonymous throughout the process, and their loan proposals are independently and individually assessed without any impact on their credit rating. They are also free to leave the process any time and have no obligation to accept any bid.
“We will 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,” said Dwyer.
Loanbid said all offers are shown on the dashboard and are ranked according to the total cost of the loan.
“We have been fastidious in deciding on our partners on the platform, to give our borrowers the best opportunity to ensure they get the right loan for their requirements and lifestyle,” said former NAB banker Darren Roach, a partner at Loanbid.
The platform currently has 18 lenders on its panel.
Loanbid partner John Ireland told Australian Broker that the platform does not charge customers an upfront fee or take trail commissions from lenders. Instead, it charges the lender or broker a referral fee if the loan is settled.
