Kolenda claims comparison site will support brokers

by Mackenzie McCarty12 Jun 2013

Independent broker network 1300HomeLoan has launched Australia's first free online home loan index, which managing director, John Kolenda, believes will be as useful to brokers as it will be to their clients.

Dubbed ‘The Australian Lenders’ Index’, the service provides consumers with information on what lenders have done with interest rates as far back as five years ago – as well as where they stand at the moment.

“The…index was designed to provide consumers with detailed information on historical lender performances and current interest rates and then provide a ranking based on those performances. It’s…an information source and a site where they can go in to get a lot more detail on the various lenders and then be able to come up with a more informed decision.”

“If you look at the way home loans are currently assessed, the only measure is really what interest rate is on offer – and that’s either the interest rate itself or the comparison rate. Now, that only gives you a very small insight into that lender and the product. The Australian Lenders’ Index provides you with information on interest rate fluctuation, how quickly [lenders] drop interest rates when the RBA moves, how quickly they raise interest rates, how many months have they actually been providing the lowest variable rates, how many months have they been delivering the highest variable rate in the market – it’s providing a lot more granular detail.”

However, while the site is aimed partly at the consumer, Kolenda hopes it will be just as useful for brokers themselves.

“This initiative is largely going to support the broker network, because the best place to start off and to go and seek support for getting the best loan is definitely the mortgage broker. The broker has access to all those different lenders and now they also have another resource tool to add to their belt where they can access information themselves. It’s a totally independent site.”

“The broker can access the current information, like a consumer, on the site, but they can also subscribe to the Australian Lenders’ Index and that will provide them additional information that will support them when they’re engaging in dialogue with their customers. It will be a very powerful resource tool for both consumers and mortgage brokers.”