A new mortgage website launched today sees lenders “bid” against each other to win home loans straight from the consumer. The new site aims to provide a way for consumers to seek out and compare a range of mortgage deals, claiming it isn't ‘biased’ by broker commissions.
The Australian-developed and owned mortgage site, flongle (www.flongle.com.au) allows borrowers to anonymously post what they’re looking for in an ideal mortgage and invite an open market of banks, non-bank lenders and brokers to “bid” to win their loan.
The site’s creator, Michael Lee, says it works like a mortgage broker, but unlike a broker, does not accept commissions from lenders –
which he claimed means it remains totally unbiased.
“There is a fallacy that mortgage brokers don’t cost the borrower anything because their commissions are paid out by the lender, but the reality is, a broker’s bias can end up costing you thousands if earning their commission comes ahead of genuinely finding the best deal for you. After all, anything from the loan amount, term and the features you choose can all mean more money for them,” he said. “This is why we think flongle will be a game-changer. With flongle, there’s nowhere to hide, just the hard facts in front of you – who’s offering you the best loan for your needs at the best overall price.”
But the service comes at a significant price. Consumers pay a once off fee of $399 to post their business, or they can have a flongle mortgage expert to guide them from start to finish for a fee of $799. Each flongle bidding war runs for up to seven days. The site then matches, ranks and filters all incoming bids according to cost and how well they match the borrower’s requirements.