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New brokerage ditches big four, offers 'ethical loans'

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Australian Broker | 17 Mar 2015, 08:52 AM Agree 0
A new online brokerage is encouraging consumers to switch their home loans from the carbon-exposed major banks to ethical fossil fuel free lenders
  • Matt Mitchener | 17 Mar 2015, 09:42 AM Agree 0
    Great thought leadership from the Future Home Loans group - I'm sure you are already receiving some impressive traction!
  • Awesome - Albert | 17 Mar 2015, 09:56 AM Agree 0
    I have one question. Where is the money coming from to fund these loans? Unless it is from an extremely wealthy individual and the maximum LVR is 80% I am sorry to say but at the end of the chain is most likely a large financial institutions like HSBC, JP Morgan, National Nominees, Citicorp, Bank of China to name a few, all of who also fund investment in coal, oil and gas.

    Nice marketing ploy but money doesn't come with an electronic tag that tells you were it came from, so to claim your sending a message to the Big 4 by moving loans away from them seems awfully naïve.

    If you want to have a real effect on coal, oil and gas investment, then invest in alternative energy companies yourself, or set yourself up with a solar grid and energy storage for you own home. At least that way you will know the truth about what your money was invested in.
  • Michael Kent | 17 Mar 2015, 10:17 AM Agree 0
    Yeah, because the first thing my clients think about when it comes to home loans is whether the lender is carbon exposed! Get real. 98% of the market don't care.

    It comes down to rate rate rate, fees fees fees and nothing else.
  • Andrew Jackson | 17 Mar 2015, 10:18 AM Agree 0
    Unless they want to achieve a less than a 1% market share, it just won't be a success. They should be called 'Here today gone tommorrow' Home Loans. Reminds me of The Big Switch which ended up being a Big Waste of Time!
  • Rocket Scientist | 17 Mar 2015, 10:21 AM Agree 0
  • Michael Kent | 17 Mar 2015, 10:32 AM Agree 0
    $200 - 300mil of home loans switched in year one! Lets re-visit in 12mths. My estimate would be $12-20mil if that.
  • Stephen Dinte | 17 Mar 2015, 10:43 AM Agree 0
    I looked on the ASIC site yesterday and could not find an ACL or CR number for this company. My search was prompted following receipt of an email sent by this group which failed to disclose an ACL or CR number. The NCCP states that all advertising must carry an ACL or CR number and the email was definitely advertising. They are certainly starting off on the wrong foot.
  • Vic Regional Broker | 17 Mar 2015, 11:56 AM Agree 0
    Of the 100 or so products I am just curious of where their funding is sourced from, if it is securitised, who are the ultimate funders?

    Just curious! 200 million in one year hope they have the staff? Try 20-50 million!
  • Finance Tart | 17 Mar 2015, 01:01 PM Agree 0
    Elementary investigation would reveal the company are mortgage brokers just like everyone else. They are credit representatives (#466071) under Vow Financial. So, they will simply offer their clients the products from home loan providers available through Vow other than the "Big 4". The legal name is My Future Home Loans Services P/L but the company also refers to itself as just Future Home Loans on its website - interestingly, that business name does not appear to have been registered by the ACT-based company unless it did so in either TAS or NSW.
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