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New social network for finance could transform the mortgage industry

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Australian Broker | 23 Jun 2015, 06:04 AM Agree 0
A new social network for finance, which allows consumers to discuss and compare home loans, could be a game changer for the industry. But how does it fit in with brokers?
  • Andrew Hill | 23 Jun 2015, 09:05 AM Agree 0
    In my experience the average consumer chasing rate doesn't consider things like LMI, valuations, features, individual circumstances, elligibility etc.

    Aussies love giveing eachother advice at BBQs and this platform will intensify that.

    I would love to talk to other brokers about the mechanics of the internal combustion engine and so I will set up a page and because we all know what an engine is - right? Surely we can all debate the benefits of bigger bits and pieces and then go an see if we can get those affixed to our vehicles by a professional only to be told that a V8 motor will not fit in a Prias.

    Why do I need to be licensed and do hours of ongoing CPD for consumers to be given a platform to advise each other.
  • Papery | 23 Jun 2015, 01:09 PM Agree 0
    Jut another site for Bank bashers, the haters & those that peddle mis-information....not to mention the odd scam artist!
  • Michael Kent | 23 Jun 2015, 03:09 PM Agree 0
    I don't see the point!

    To me it just looks like a web site for the public to vent. The consumer puts down details of the loan amount, the lender, the rate they got and the rate they think is fair.

    One punter has put down a $110k loan through CBA where they are on 4.99% and they think 3.5% is fair! Dream on!

    What will this web site achieve exactly? Do they really think CBA will turn around and say "oh gee yes you're right 3.5% is a much fairer rate".
  • David Julien | 23 Jun 2015, 04:12 PM Agree 0
    Michael Kent I don't see your point!

    The website looks like a place where consumers can voice themselves, speak out!

    What's so good about dfinanz is how it takes the discussion from a one-on-one between broker and borrower and spreads it to a wider audience.

    The bid you were referring to (Bid 54), is a fair rate. What kind of percentage do you think is fair?

    It'll eventually get to the point the bank's notice this push, a push for fair rates across the world.

    Can they ignore this? Put simply, no.

    It's time we send a clear message to the banks; We think your rates are unfair, and we know that our Fair Rate is.

  • Michael Kent | 23 Jun 2015, 04:52 PM Agree 0
    David Julien

    How long have you worked at

    People can go on about what they think is a "fair rate" as much as they want. It won't make any difference or have any influence at all.

    The web site is really taking off right around the world. Bids from Africa 0, bids from Asia 0, bids from South America 0, North America 2, Europe 6.

    It is just another overnight web site that will fade into obscurity like the rest.
  • Michael is Right | 23 Jun 2015, 10:01 PM Agree 0
    David, Michael's point is that Banks are price makers. Unless you have:-

    a) Cheaper funding &/or superior policies
    b) Some ability to compete with Brand
    c) Distribution. Advertise at 3% and 50 loan per week won't change the world. At 3% could not image anyone paying a return to the investor, commission, trail and risk etc etc .

    Think of it as Petrol prices. The value of the broker is applying experience to provide savings in structure, circumstance and then price/lender.

    On a positive, at least your communicating and likely to be endeavouring to do the right thing.

    Unfortunately obtaining cheaper funding as a competitive strategy has not worked in 190 years since Bank of NSW formed.

    Maybe Ned Kelly who robbed Jerilderie Branch would argue otherwise, however he wanted a bit more than Bank rates and the default clause was an apple strategy placed (not the Ipad type!!) where you had choice for the arrow!! Does it happen monthly if arrears is not corrected!

  • Broker | 24 Jun 2015, 12:35 PM Agree 0
    Another fly-by-nighter - and David you are living in noddyland if you think that lenders will pay any attention to this gimmick.
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