Kiwis embrace home loan auction website

Kiwis embrace home loan auction website

Home owners are already auctioning their mortgages on New Zealand’s new home loan auction website fundit.co.nz

The website launched yesterday (27 August ’07), pitching home loan lenders directly against each other in live web-based auctions to offer the best deals for each home loan.

FUNDIT’s Chief Executive, Abby Foote, said that by 5pm yesterday six home loan auctions had already successfully gone live on the website, another six were about to open, and a further 75 applications were being completed.

“The public’s response for the first day has been fantastic – we knew there would be interest, but to have auctions go live on the first day proves that New Zealanders are ready to take greater control of finding the most competitive deal for their home loan,” Ms Foote said this evening.

Fundit.co.nz enables homeowners, first-home buyers and property investors to set up free private auctions detailing their home loan needs, and make lenders compete online for their business.

Eight lenders led by major banks BNZ and Kiwibank have already committed to bid on the site, sparking a major industry move towards a more transparent and competitive home loan market.

Ms Foote said BNZ and Kiwibank in particular had consistently stood out as the most competitive major home loan lenders in recent years, and their strong customer focus reflected in their participation on the site.

FUNDIT’s broad range of home loan lenders ensured that a strong choice of borrowing options and interest rates would be on offer. “The lenders who are participating have made a real commitment to offering New Zealanders competitive home loan deals from the site’s launch onwards,” Ms Foote said.

Ms Foote, who until last year was Chair of Mike Pero Mortgages, said FUNDIT was a completely different approach to mortgage brokers.

“Rather than having no visibility of their home loan negotiations, FUNDIT gives borrowers direct access to lenders in a secure independent environment that delivers true market value and competitive offers. They can see every offer that’s placed on their auction and make an informed decision based on those offers,” she said.

Market research undertaken during FUNDIT’s development indicated that while Kiwis wanted the best home loan deal they could get, they also wanted to feel they were in control of that deal and that the process was as convenient and transparent as possible.

“FUNDIT does this at no charge to the borrower by bringing the market online and available whenever or wherever, giving them greater control than they’ve ever had in choosing the best home loan deal. Plus they get to watch lenders compete directly for their business,” Ms Foote said.

“Homeowners deserve market transparency and a fair deal when they’re committing to a home loan. FUNDIT enables them to get true competition for their borrowing, without any obligation to commit to any offer until they’re completely satisfied they’ve got the best deal for them.”

With other lenders already intending to join FUNDIT in coming weeks, she expected even more to participate soon. “Lenders who aren’t on fundit.co.nz are potentially shutting themselves out of a key part of the home loan market,” she said.

fundit.co.nz is backed by New Zealand businessmen Alan A'Court, Eion Edgar, John Gilks and Peter McDermott.

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