Online loan bidding platform LoanDolphin has successfully raised $1.1 million to expand its presence in Australia’s major capital cities.
Investor Barry Lambert has supplied $1 million while the remainder has come from fintech investment firm H2 Ventures.
LoanDolphin is a free online platform that offers refinance or new home loans at rates not typically advertised. Brokers, lenders and banks bid for client business in a model that has delivered an average saving of 0.87% or $ 5,254 per year.
“We are extremely excited by the capital boost which will help us accelerate our growth plans,” said LoanDolphin CEO Ranin Mendis.
LoanDolphin was launched in February
this year and had surpassed $100 million in home loans
by August. The firm will use the added funding to reach more customers, develop the team and introduce some new features to the platform.
Currently, the firm has auctioned off over $180 million in loans. Of these, 46% are new loans while 54% are refinances. Looking at borrower type, 74% are owner-occupied loans while 26% are for investment property.
Lambert praised the bidding platform as being the “next generation” in efficiency and savings.
“It is a much more efficient prospecting tool for mortgage brokers and therefore enables them to pass on those savings to borrowers,” he said.
“The system has been written by bankers who understand the mortgage broking industry and therefore understand the real issues for borrowers, brokers and banks.”
Brokers are by far one of the biggest beneficiaries of the platform, he told the Australian Financial Review
“The brokers can run around town schmoozing and trying to get referrals, or they can just follow the auctions that come up on here and take on the kind of loans they want to, and that they know they can win because they're a big-hitter with Westpac or whoever it might be,” he said.
Mendis told Australian Broker
that LoanDolphin worked closely with all providers including brokers to assist with both workflow and goals.
“We have mortgage brokers from all over the country who are actively participating in our platform and building their pipeline,” he said.
“Currently 90% of our loans are written by mortgage brokers. We anticipate this to change as we partner directly with banks more; however we believe that mortgage brokers will continue to add value through our platform.”
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