Online home loan auctions a world first
Media release – January 22, 2008
Online home loan auctions believed to be a world first
Fundit’s online mortgage auctions believed to be a world first offering best deals for home buyers
Hundreds of Kiwi home owners are auctioning their mortgages on New Zealand's first and only home loan auction website fundit.co.nz.
Fundit says it has conducted more than 500 auctions since launching last year. They believe their online system is a world first in the approach that it takes to auctioning home loans.
The company is backed by Forsyth Barr chairman Eion Edgar, former Russell McVeagh partner Alan A'Court, Fisher & Paykel deputy chairman John Gilks and banking and finance specialist Peter McDermott.
The scheme challenges mortgage brokers as the house property market continues to tighten.
The online business is pitting home loan lenders against each other in an online bidding auction for prospective borrowers.
The banks bidding online with Fundit are the Bank of New Zealand, Kiwibank, First Mortgage Trust, Loan and Building Society, Number 8 Mortgages, Southern Cross Building Society, Southern Cross Finance and Southland Building Society.
The BNZ has been a significant participant in Fundit and has been reported as having a surge in its share of the mortgage market over the quarter since Fundit launched.
Fundit.co.nz helps homeowners, first-home buyers and property investors by arranging online auctions so banks and lenders compete online for their business.
Ms Foote, a former chairman of Mike Pero Mortgages, said Fundit was a fresh approach to finding a home loan at a testing time in the property market.
``Home buyers can see every lending bid that's placed on their auction," she said.
``Lenders who aren't on fundit.co.nz are potentially shutting themselves out of a key part of the home loan market.
``The housing market is becoming tighter and we believe we are giving home buyers an edge for getting the best mortgage deal for them with online auctions.’’
Ms Foote said their research showed Kiwis not only wanted the best home loan deal but they wanted to feel in control of the deal.
Fundit arranges the auction process at no charge to the borrower and they can see lenders compete directly for their business.