Borrowers to purchase home loans online
As Australians take to buying and selling online, arranging and purchasing a home loan over the web is the next natural progression, according to Matt Graham, chief executive of online mortgage broking service Naked Mortgages.
Without the associated costs of running a broker network, borrowers understand they can obtain the same level of loan advice from a professional broker via the web as they would face-to-face, he said.
In addition, Naked Mortgages' model rebates the lender's upfront commission to the customer, according to Graham.
"For an average home loan of $350,000, this equates to around $2000 in commission which is paid direct to the borrower," he said.
With more than half of all home loans and mortgage refinancing currently being undertaken by a broker, Graham said this online model would not be popular in the mortgage broking industry.
According to Graham, there is often lack of transparency and disclosure in obtaining credible mortgage advice, but through this model borrowers are provided with full disclosure of all fees and commissions and access to 35 lending institutions.
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