E-LOAN - frequently asked questions -
-frequently asked questions -
1 What is E-LOAN?
E-LOAN is a brand new home loan service that enables people to make online comparisons of a wide range of loans from 18 different lenders. Customers can easily choose the loan that suits them best and then apply for it over the internet or by phone. On behalf of customers, E-LOAN Consultants fast-track the application with the lender. This makes getting a loan approved and settled easy. The E-LOAN service is safe, secure, impartial – and free.
E-LOAN is unique because it gives customers the knowledge and power to get the right home loan, quickly and easily.
2 Why will people want to use E-LOAN?
E-LOAN is a free service that offers customers simplicity and convenience. It is fast and easy to use and backed up by high-quality customer service.
E-LOAN is an anytime, anywhere, one-stop shop for customers who want a home loan. By providing objective and impartial information about a wide range of home loan products, E-LOAN gives customers real decision-making power and choice over the home loan selection process. It meets the unique requirements of each customer by providing easy, comparative shopping based on their individual needs.
At each stage of the loan research and application process, personalised assistance is available from a dedicated E-LOAN Consultant. E-LOAN’s 0800 number is staffed 24 hours a day, seven days a week, to help customers with any enquiries they might have.
3 What is E-MATCH?
E-MATCH is the heart of the E-LOAN service. Customers answer simple questions related to their home loan requirements. E-MATCH compares these requirements with our database of around 200 loan products, then presents loan products that match. Customers can see fees, costs and information, allowing easy comparison of different home loans.
4 What is E-TRACK and how does it work?
E-TRACK is a unique and free service. It offers E-LOAN customers 24-hour access to information about the status of their loan and its transaction details at every stage of the home loan process from application to settlement.
E-TRACK means customers can track the progress of their loan application. E-TRACK advises them of any outstanding documentation that may still need to be completed or of anything else that requires action.
E-TRACK is a secure service and customers access their information using a self-selected private password.
5 What is E-WATCH?
E-WATCH is a free email newsletter that keeps borrowers informed of the latest developments in the mortgage market and offers advice on how they affect customers. It provides topical information of value to all New Zealanders interested in the mortgage market.
6 How has E-LOAN provided a secure environment for applying for a loan online?
E-LOAN is absolutely committed to providing customers with a secure online environment.
E-LOAN has taken every precaution to ensure information sent over the internet by customers is secure and that the risk of unauthorised access is minimised.
E-LOAN uses 128-bit encryption which means that no information sent by customers over the internet can be read by anyone else. E-LOAN offers a secure server to ensure a safe and reliable system for customers and for its business partners. This has been audited independently by PricewaterhouseCoopers.
7 Does E-LOAN share customer information with other companies?
E-LOAN is committed to our customers’ rights to privacy. E-LOAN does not share the personal data of its customers with anyone, unless the customer requests us to do so. PricewaterhouseCoopers has audited E-LOAN’s privacy processes.
8 Can a customer submit a loan application at any time? What are E-LOAN's operating hours?
Yes. As E-LOAN operates 24 hours a day, seven days a week, customers are able to process their loans at any time. Customers can apply online or over the phone. In addition an E-LOAN Call Centre service is available 24 hours a day, seven days a week. If an E-LOAN Consultant is not available immediately when a customer telephones the Call Centre, then a consultant will return the call to the customer as soon as possible.
E-LOAN will always contact customers within 10 hours of receiving their home loan application. For example, if an application is submitted at 11.31pm, E-LOAN will reply to it by 9.30am the following day.
9 What documentation does a customer need to make a loan application on E-LOAN?
Different financial providers have different requirements. Some of the documents that are likely to be required include employment and income information, statements of assets and liabilities, and property and realtor information. E-LOAN Consultants advise customers on which documents they need to support their application. A full list of required documents is made available to the applicant via E-TRACK.
10 What do E-LOAN Consultants do? What is their role in the E-LOAN application process?
E-LOAN Consultants are experienced and expert financial consultants. They offer personalised assistance at each stage of the loan research and application process to the level requested by our customers. This may include working with customers to establish the criteria for the kind of loan they are looking for, as well as providing unbiased comments on loan offerings based on the customer’s personal criteria and financial characteristics.
11 Who are the people behind E-LOAN?
Bruce Gordon is the chief executive officer of E-LOAN New Zealand. Bruce has a proven background in business development, a real commitment to consumers and an acute knowledge of the banking and financial services industries. He has a solid grounding in operational customer-focused banking and is an expert in electronic applications in banking services, and in business development.
Prior to joining E-LOAN Bruce was chief executive officer of Farmers’ Financial Services, New Zealand’s largest consumer finance and card company. In this role he made significant changes to the company which greatly improved its performance. His achievements included launching the Farmers’ Home Loan Service. In previous roles with the Bank of New Zealand and ASB Bank, Bruce has worked to bring to market leading electronic banking facilities such as Telephone Banking, Secure internet Payments and EFTPOS.
E-LOAN’s other senior managers are Katherine Dewar (Marketing Manager), Don Morgan (Service and Sales Manager) and Kieren Cooney (Online Manager).
12 How many New Zealand lending institutions are supplying E-LOAN?
At launch 18 leading financial institutions who offer home loan products and services have agreements to sell through E-LOAN. This includes New Zealand’s four largest banks and specialist and niche home lending companies.
Combined, these lenders represent around 9 out of 10 dollars currently borrowed for residential home loans. At launch there are approximately 200 different loan products available to E-LOAN customers.
13 What are the main differences between applying for a loan online with E-LOAN and with a 'bricks and mortar' mortgage broker?
For the first time in New Zealand there is an opportunity for the consumer to get a truly unbiased comparison of around 200 loan products to find the ones that best match their requirements. The process is simple, free and available at any time during the day or night. E-LOAN is about demystifying banking for the public.
14 Will E-LOAN be diversifying into other loan products? What are these likely to be?
Over time, E-LOAN will be diversifying its product range to provide customers with a wide range of financial service options, including other ways to manage debt and risk, such as branded credit cards and insurance products.
15 How will E-LOAN make money?
E-LOAN makes money by receiving a commission on each loan that is placed with a lender through the E-LOAN site. PricewaterhouseCoopers independently accredit that neither E-TRACK, nor the E-LOAN Consultants know the commissions received by E-LOAN from individual lenders, to ensure impartiality.
16 Where will E-LOAN be positioned in New Zealand's current home lending environment?
E-LOAN has a vision to become New Zealand’s leading online home loan seller. For participating financial lenders, E-LOAN offers a unique alternative selling channel providing new customers.
The New Zealand home loan marketplace is estimated to be worth approximately $60 billion. Reports vary, but there is approximately $15 billion turnover in home loans each year.
While the home loan market is predominantly serviced by traditional lending institutions, mortgage brokers are capturing an increasingly larger chunk of the marketplace (in 1998, they accounted for 17 percent). According to an article in NZ Banker (March 1999), by next year mortgage brokers could account for 35 percent of the market.
17 What is the current internet environment in New Zealand?
New Zealand’s financial services sector is a leader in providing online services for domestic customers. All of the major banks have implemented internet banking for their domestic customers. Some insurance companies are offering full online banking services and some retailers are extending their product range to include daily banking.
AC Nielsen’s NetWatch survey of top web domain categories in New Zealand in March 2000, found that finance/insurance/investment sites reach 12 percent of active internet users.
18 What is the ownership structure of E-LOAN New Zealand?
E-LOAN New Zealand Ltd is 50% owned by eVentures New Zealand and 50% owned by E-LOAN Incorporated.
19 How successful has E-LOAN been overseas?
E-LOAN USA is the leading online financial services’ company in the United States. It has been offering online mortgages since June 1997 and vehicle financing loans since September 1999. E-LOAN USA has captured 25% of the United States’ online home lending market and successfully closed 5,000 loans on site in its first year of operation. It allows customers to compare over 50,000 products from 70 different lenders.
E-LOAN has also been launched in the United Kingdom, France, Germany, Japan and Australia.
20 Who is eVentures New Zealand?
eVentures New Zealand’s primary goal is to provide investment capital, strategic resources and management services to establish leading international internet, e-commerce and new media businesses.
The major shareholder in eVentures New Zealand is the eVentures partnership, a United States general partnership owned in equal proportions by SOFTBANK (an international internet investor with headquarters in Tokyo), and epartners, a venture capital fund and subsidiary of News Corporation.
eVentures’ foundation shareholders include Chairman Craig Heatley, Telecom New Zealand, the Warehouse Group and Todd Capital. A successful IPO in May 2000 also attracted a varied and diversified register of institutional and retail shareholders.
eVentures New Zealand’s international board members are Mark Booth (the former chief executive and managing director of BSkyB in the United Kingdom, now chief executive of epartners), Bruce McWilliam (epartners director) and Jesse Parker Jr (vice-president for business development of SOFTBANK International Ventures).
Its New Zealand directors are Telecom New Zealand chairman Roderick Deane, Warehouse founder Stephen Tindall, managing director of Todd Capital Robert Bryden and managing director of McCollam Capital Partners, Steven McCollam.
The chief executive officer of eVentures New Zealand is Cindy Mitchener.