Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter

Online loans get the refi vote

Borrowers refinancing an existing home loan are the mortgagees mostly likely to choose an online lender.

New data from loans.com.au has found that 37 per cent of customers who used the online lender were borrowing to buy a property, while 53 per cent were refinancing an existing home loan.

Firstmac managing director Kim Cannon said the data demonstrated customers were informed and empowered in the home loan application process.

Advertisement
Advertisement

“It shows customers are financially savvy and have come to loans.com.au looking for a better deal on their home loan,” Mr Cannon said.

“These are people who have identified the way to get the best deal on their home loan is not through one of the big banks, it’s through a lean lender who doesn’t pass on the costs of a branch network, broker commissions, and advertising campaigns,” he said.

Recent data shows the major banks write 92 percent of Australian home loans but, with increasing competition across the home loan industry, online lenders are gaining momentum.

“Borrowers who are refinancing know their way around the home loan sector; they’ve been through the exercise with their original lender,” Mr Cannon said.

“It is heartening to see them move their loan to loans.com.au because experience tells them a streamlined lending model is what they need,” he said.

Mr Cannon expects the home loan market to see great change towards online money management as technology makes the user experience quicker, simpler, and more convenient.

“In the past year or so, banks, credit unions and building societies have closed 130 branches around Australia, while loans.com.au’s application rate has increased 187 per cent and loan amounts have doubled,” he said.

“It doesn’t seem to bother customers that there is not a local branch to walk in to; they are happy to manage their money from the couch, the office, train, park, or café.”

 

Online loans get the refi vote
mortgagebusiness

Latest News

The Morrison government has commissioned a new inquiry into the Consumer Data Right, which aims to further empower consumers and “overcome...

The central bank is set to hold off on a rate cut in February following a stronger than expected bounce in the labour market, ANZ Research h...

Almost nine in 10 residential properties are being resold for a profit, according to the latest research from CoreLogic. ...

FROM THE WEB
podcast

LATEST PODCAST: New government loans and grants for SMEs

Do you think Australia will move to quantitative easing this year?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.