Web Loans Are Way of Future: Lender
Arranging and purchasing a home loan over the web is likely to become the way of the future, according to at least one lender.
Not only have Australians have taken to buying and selling online, but borrowers understand they can obtain the same level of loan advice from a professional broker via the web as they would face-to-face, Matt Graham, chief executive of online mortgage broking service Naked Mortgages, said.
Naked Mortgages does not have the associated costs of running a broker network and it has a model that rebates the lender's upfront commission to the customer. "For an average home loan of $350,000, this equates to around $2000 in commission which is paid direct to the borrower," he said.
Graham acknowledged his online model would not be popular with the mortgage broking industry, which currently accounts for more than half of all home loans and mortgage refinancing undertaken.