Just wondering if anyone has had any experience using the below sites, where lenders bid for your loan. Just looking into it myself.
I have put some details down of what payments these sites appear to receive. The benefits of using such sites include the competition factor and you seem to protect your credit file from having a reportable event until you chose what lender you would like to proceed a formal application with.
Joust is a free digital marketplace for good consumers to connect directly with lenders who bid online for your home loan business.
If you select a bank and complete your home loan with them, Joust receives a one-off 0.20% success fee from the bank. This success fee is significantly less than the average mortgage broking up-front fee and trailing commission.
We charge the broker/lender a percentage of the final settlement amount. We don’t get paid a trail or incentivised differently for different volume (aka volume-based incentives). We don’t favour any bank over the other. All banks are welcome to join us for free.
The startup generates revenue by charging an “introduction fee” to brokers or banks, which totals to 22 basis points of a settled mortgage.
Not as transparent as others, so not showing what they receive from lener
We charge the lender a fee if your loan is settled. LOANBID has no influence over any of the bids made, we merely provide the platform to connect you to lenders to ensure we remain transparent and unbiased, regardless of who you choose. We receive no fee if you do not proceed to settlement.
- Fees
11.1 We receive payment of fees for Services offered to Providers using the Site, as part of the Site operation. Such fees are payable by the Providers upon successful settlement of their Products.
11.2 The use of the Site remains free to you.
https://unbiasedmortgagebrokers.com.au/ and https://flongle.com.au/ appear to be the same company
If you choose our Platinum Service we will do all the legwork to arrange and settle your loan; then rebate all lender payments
made to Unbiased in full including Upfront and Trail Commission and any other money paid to us by the lender for your loan.
In lieu of retaining lender payments, we will charge you a once off, flat rate Unbiased Advice Fee (“the UAF”) on
unconditional approval of your loan. You can deduct the UAF from lender paid commission which are otherwise deposited to
your loan account to avoid being out of pocket for our fee if you prefer. The UAF is calculated as 0.65% plus GST of your base
loan amount. It is factored into all “Our Cost” calculations provided to you assuming you deduct it from lender paid
commissions, The UAF is the same rate and amount regardless of which loan or lender you choose. Additionally, each commission deposit to your loan account incurs a processing fee comprising of a $5.00 processing fee
which is fixed for the life of your loan plus an electronic transfer fee, which is currently 50c. The electronic transfer fee is a
fee charged by the bank and may change from time to time.
If you choose to deduct fees from the commissions that we rebate to you, we will first deduct the UAF before making any
payment to you. If the total lender payments made to us for your loan does not cover any outstanding fee, Unbiased will
reduce our fees ensuring you are not required to pay the shortfall. You can also prepay the UAF and save 5%.
Importantly, if you would prefer to consider taking your loan directly with a third-party bidder from your mortgage contest,
you can release all Mortgage Contest Bidder Information by purchasing Gold Service and save 50%. When we publish your
anonymous mortgage contest, we ask bidders to reimburse you for the reduced UAF. If you purchase Gold Service then
decide you would rather take up Platinum Service, we will deduct any money you have paid Unbiased from the Platinum
Service UAF, do all the legwork to settle your loan and rebate lender paid commissions to your loan account.
I've used joust and found my current loan provider who I re-financed with.
The issue I had was that most of the providers would respond without actually reading my requirements, for eg: respond with a OO loan when I was looking for an investor loan, etc.
In the end, I did get one who even when I queried if their rate was for investor loan, as their website did not have that rate published - it was much lower. Later on, I found out they had mistakenly offer their OO rate; but decided to honour the offer.
I haven't tried the other; but it doesn't hurt to use them. I'd say go for it and if you find a good rate through it, brilliant.