Online mortgages
In an unprecedented move in Australia, for the first time Australian borrowers have the opportunity to participate in an
online mortgage auction at the website BidMyLoan.
What is an online mortgage auction?
Just like a regular auction for a house, a
mortgage auction allows “bidders” in the form of mortgage lenders to come forward to bid for your mortgage.
There are four easy steps to participating in an
online mortgage auction:
1. Complete an online form at a mortgage auction website such as BidMyLoan.
2. Watch lenders "bid" for your online mortgage as they offer you their most competitive rates on a pre-approved loan.
3. Compare, negotiate and choose the best mortgage for you.
4. Finalise your mortgage by organising the paperwork your chosen lender requires.
The differences between a
mortgage auction and a home auction are:
- A mortgage auction is conveniently held online, whereas a home auction typically requires face-to-face representation.
- The "bidders" are mortgage lenders such as banks, non-bank lenders and credit unions, rather than home buyers.
- The bids are for the business of your home loan, rather than the purchase of your home.
- Bidders compete by offering you a competitive interest rate and home loan package, rather than a competitive price for your home.
But a mortgage auction, just like a home auction, gives you access to the best deal available – in this case, the best deal on an interest rate and mortgage package.
After you receive your bids from mortgage lenders, you can take the auction one step further and negotiate directly with the lender who has approached you with the best deal. Your objective is to strengthen your relationship with the lender and negotiate their interest rate further down.
The top three benefits of participating in an online mortgage auction at
BidMyLoan are:
1. Fast turnaround, with a pre-approved loan taking as little as ten minutes to secure.
2. Efficiency, providing access to a wider range of mortgage lenders in the shortest amount of time.
3. Transparency, by slashing out the hidden "trailing commissions" that are paid for the life of your loan if you used a mortgage broker. You can save money instead, as BidMyLoan only asks your chosen lender to pay a low, one-off introduction fee and they pass on the savings to you, the consumer.
An auction website such as
BidMyLoan is one of the safest ways to negotiate an online mortgage because:
- Up to 20 established and trustworthy lenders will bid for your home loan, including international banks, Australian banks, credit unions, non-bank lenders and mortgage managers.
- Every lender is screened by BidMyLoan before they participate in a mortgage auction to make sure they are licenced to provide home loans in Australia.
- No lender approaches you directly, but rather through the BidMyLoan website, providing you with the privacy and time to choose a lender at your own pace.
- Once lenders have placed their first bid you can negotiate with them directly or alternatively use the BidMyLoan ‘loan champions’ to negotiate a better deal on your behalf.
For more information about online mortgages, go to
bidmyloan.com.au or call 1300 BID MY LOAN.
This article was brought to you by
BidMyLoan, helping first home buyers, refinancers and investors find a better home loan in Australia.
