Fundit News
Online mortgage broker Fundit says research commissioned from Gareth Morgan's Infometrics has found the public could save more than $360 million on their mortgage repayments each year by using its services.
Fundit allows borrowers to list their mortgage requirements on a website where seven lenders - BNZ, Kiwibank, First Mortgage Trust, General Finance, CBS Canterbury, Southern Cross Building Society and Number 8 Mortgages - can then bid to provide a loan.
Fundit chairman Alan A'Court said the auction process saw borrowers generally getting discounts of around 0.4 percentage points off a standard lender's rate. The range varied between 0.8 and 0.2 percentage points.
Lenders could make lower bids because Fundit was cheap for the banks to deal with.
The online service has completed about $50 million of loans this year.
Infometrics' research indicates that the banks could improve their mortgage lending margins by around a third on loans sourced through online services like Fundit. If those savings were passed on to customers that would equate to savings of over $800 a year on an 80% home loan on the median-priced Auckland home.
A'Court said the research had been done to persuade the other big banks like Westpac, ANZ National Bank and ASB to sign up to Fundit. The research was also being used to woo lenders in Australia, where Fundit was planning to expand.
Fundit advertising, which is critical of mortgage brokers, has been ramped up in recent weeks following a revamp of the group's auction process.
Megan Salt, chief executive of the Mortgage Brokers Association, said Fundit treated mortgages like a commodity, while brokers offered advice and ongoing support. There was a place for Fundit, she said, but many people's mortgage needs were not simple, and advice could save them money.
A'Court said: "We are not saying get rid of mortgage brokers entirely. Some people need them, but many people would be better off without them."
Article courtesy of Rob Stock and Sunday Star Times - Sunday 28 September 2008
Fundit's online mortgage auctions believed to be a world first offering best deals for home buyers
Media release - January 22, 2008
Hundreds of Kiwi home owners are auctioning their mortgages on New Zealand's first and only home loan auction website fundit.co.nz.
Fundit says it has conducted more than 500 auctions since launching last year. They believe their online system is a world first in the approach that it takes to auctioning home loans.
The company is backed by Forsyth Barr chairman Eion Edgar, former Russell McVeagh partner Alan A'Court, Fisher & Paykel deputy chairman John Gilks and banking and finance specialist Peter McDermott.
The scheme challenges mortgage brokers as the house property market continues to tighten.
The online business is pitting home loan lenders against each other in an online bidding auction for prospective borrowers.
The banks bidding online with Fundit are the Bank of New Zealand, Kiwibank, First Mortgage Trust, Loan and Building Society, Number 8 Mortgages, Southern Cross Building Society, Southern Cross Finance and Southland Building Society.
The BNZ has been a significant participant in Fundit and has been reported as having a surge in its share of the mortgage market over the quarter since Fundit launched.
Fundit.co.nz helps homeowners, first-home buyers and property investors by arranging online auctions so banks and lenders compete online for their business.
Ms Foote, a former chairman of Mike Pero Mortgages, said Fundit was a fresh approach to finding a home loan at a testing time in the property market.
"Home buyers can see every lending bid that's placed on their auction," she said.
"Lenders who aren't on fundit.co.nz are potentially shutting themselves out of a key part of the home loan market.
The housing market is becoming tighter and we believe we are giving home buyers an edge for getting the best mortgage deal for them with online auctions.''
Ms Foote said their research showed Kiwis not only wanted the best home loan deal but they wanted to feel in control of the deal.
Fundit arranges the auction process at no charge to the borrower and they can see lenders compete directly for their business.
Media Advisory : For further information, comment, photo or interview
contact Kip Brook at Word of Mouth Media NZ on 03 3745426 or 0275 033855
Kiwis embrace home loan auction website
Monday, 28 August 2007 10am
Home owners are already auctioning their mortgages on New Zealand's new home loan auction website fundit.co.nz
The website launched yesterday (27 August '07), pitching home loan lenders directly against each other in live web-based auctions to offer the best deals for each home loan.
FUNDIT's Chief Executive, Abby Foote, said that by 5pm yesterday six home loan auctions had already successfully gone live on the website, another six were about to open, and a further 75 applications were being completed.
"The public's response for the first day has been fantastic - we knew there would be interest, but to have auctions go live on the first day proves that New Zealanders are ready to take greater control of finding the most competitive deal for their home loan," Ms Foote said this evening.
Fundit.co.nz enables homeowners, first-home buyers and property investors to set up free private auctions detailing their home loan needs, and make lenders compete online for their business.
Eight lenders led by major banks BNZ and Kiwibank have already committed to bid on the site, sparking a major industry move towards a more transparent and competitive home loan market.
Ms Foote said BNZ and Kiwibank in particular had consistently stood out as the most competitive major home loan lenders in recent years, and their strong customer focus reflected in their participation on the site.
FUNDIT's broad range of home loan lenders ensured that a strong choice of borrowing options and interest rates would be on offer. "The lenders who are participating have made a real commitment to offering New Zealanders competitive home loan deals from the site's launch onwards," Ms Foote said.
Ms Foote, who until last year was Chair of Mike Pero Mortgages, said FUNDIT was a completely different approach to mortgage brokers.
"Rather than having no visibility of their home loan negotiations, FUNDIT gives borrowers direct access to lenders in a secure independent environment that delivers true market value and competitive offers. They can see every offer that's placed on their auction and make an informed decision based on those offers," she said.
Market research undertaken during FUNDIT's development indicated that while Kiwis wanted the best home loan deal they could get, they also wanted to feel they were in control of that deal and that the process was as convenient and transparent as possible.
"FUNDIT does this at no charge to the borrower by bringing the market online and available whenever or wherever, giving them greater control than they've ever had in choosing the best home loan deal. Plus they get to watch lenders compete directly for their business," Ms Foote said.
"Homeowners deserve market transparency and a fair deal when they're committing to a home loan. FUNDIT enables them to get true competition for their borrowing, without any obligation to commit to any offer until they're completely satisfied they've got the best deal for them."
With other lenders already intending to join FUNDIT in coming weeks, she expected even more to participate soon. "Lenders who aren't on fundit.co.nz are potentially shutting themselves out of a key part of the home loan market," she said.
fundit.co.nz is backed by New Zealand businessmen Alan A'Court, Eion Edgar, John Gilks and Peter McDermott.
High and low-resolution images are available, including a head and shoulders photo of FUNDIT's Chief Executive Abby Foote, screenshots of the website and FUNDIT's logo.
For further information or an interview with FUNDIT's Chief Executive Abby Foote, please contact:
Jason Henry
Mb (021) 674-367
Jason@chillimarketing.co.nz
Online auctions revolutionise NZ's home loan market
Monday, 27 August 2007 10am
Forget the couch or car - home loans are New Zealand's hottest new online auction items.
The online mortgage marketplace fundit.co.nz launched this morning (27 August '07), pitching home loan lenders directly against each other in live web-based auctions to offer the best deals for prospective customers.
FUNDIT's Chief Executive, Abby Foote, said the independent site enabled homeowners, first-home buyers and property investors to directly access the home loan market via the internet, set up free private auctions detailing their home loan needs, and make lenders compete online for their business.
"We're turning the home loan market on its head," Ms Foote said. "Instead of going cap-in-hand to lenders or hoping a mortgage broker will get them a good deal, Kiwis can now auction their own home loan privately for free at fundit.co.nz and watch the market compete to offer them the best deal."
Eight lenders led by major banks BNZ and Kiwibank have already committed to bid on the site, sparking a major industry move towards a more transparent and competitive home loan market.
Ms Foote said BNZ and Kiwibank in particular had consistently stood out as the most competitive major home loan lenders in recent years, and their strong customer focus reflected in their participation on the site.
"When they were approached, BNZ and Kiwibank embraced the site immediately as an innovative and transparent consumer initiative and they were committed to being ready to bid as soon as we launched today," she said.
BNZ's General Manager Consumer, Blair Vernon, welcomed the site's launch. "FUNDIT have created an independent, transparent and level playing field which allows customers to evaluate borrowing options, while maintaining a direct relationship with their chosen mortgage provider," he said.
Ms Foote said FUNDIT's broad range of home loan lenders ensured that a strong choice of borrowing options and interest rates would be on offer. "The lenders who are participating have made a real commitment to offering New Zealanders competitive home loan deals from the site's launch onwards," Ms Foote said.
A distinct feature of the site is that details identifying borrowers and lenders remain anonymous throughout each auction. This enables all lenders to compete on a level playing field no matter how big or small they are, and ensures borrowers aren't influenced by big brands or advertising campaigns in their decision to choose an offer.
Once a bid is accepted, details are shared between the successful lender and borrower to enable the offer to be finalised.
Ms Foote, who until last year was Chair of Mike Pero Mortgages, said FUNDIT was a completely different approach to mortgage brokers.
"Rather than having no visibility of their home loan negotiations, FUNDIT gives borrowers direct access to lenders in a secure independent environment that delivers true market value and competitive offers. They can see every offer that's placed on their auction and make an informed decision based on those offers," she said.
Market research undertaken during FUNDIT's development indicated that while Kiwis wanted the best home loan deal they could get, they also wanted to feel they were in control of that deal and that the process was as convenient and transparent as possible.
"FUNDIT does this at no charge to the borrower by bringing the market online and available whenever or wherever, giving them greater control than they've ever had in choosing the best home loan deal. Plus they get to watch lenders compete directly for their business," Ms Foote said.
"Homeowners deserve market transparency and a fair deal when they're committing to a home loan. FUNDIT enables them to get true competition for their borrowing, without any obligation to commit to any offer until they're completely satisfied they've got the best deal for them."
Ms Foote said the internet had become an increasingly popular and accepted channel for both New Zealanders and financial institutions to do business, so finding and choosing a home loan deal online was a natural next step.
With other lenders already intending to join FUNDIT in coming weeks, she expected even more to participate soon. "Lenders who aren't on fundit.co.nz are potentially shutting themselves out of a key part of the home loan market.
"As a customer, why wouldn't you use it? FUNDIT's free to use, it's secure and private, it's online and convenient, and there's no obligation if you don't find the deal you're looking for. We're simply helping borrowers to find the best deal for their home loans, as transparently as possible," Ms Foote said.
fundit.co.nz is backed by New Zealand businessmen Alan A'Court, Eion Edgar, John Gilks and Peter McDermott.
FUNDIT's Chairman Alan A’Court was, until recently, a partner at Russell McVeagh specialising in banking and finance law, and has 33 years experience in the finance sector.
Eion Edgar is Chairman of Forsyth Barr, one of New Zealand's largest independently owned investment houses, and director of a range of other companies. He was formerly Chancellor of the University of Otago, is President of the New Zealand Olympic Committee, and a member of a number of foundations and trusts including the Arts Foundation of New Zealand, Central Lakes Trust, Foundation for Youth Development and the Halberg Trust. Mr Edgar has been awarded the Companion of the New Zealand Order of Merit, the Distinguished Companion of the New Zealand Order of Merit, and an Honorary Doctorate of Laws. He was named New Zealander of the Year by NBR in 2004 and was one of the six 2004 laureates in the Business Hall of Fame.
John Gilks is Deputy Chair of Fisher & Paykel Appliances and a director of a number of other companies including Port Otago. He's the founder and former Chief Executive of Motor Trade Finance Limited, a former director of The National Bank of New Zealand, Arthur Barnett and The Electricity Corporation of New Zealand, and was recently made a distinguished fellow of the New Zealand Institute of Directors. He is also Chairman of the Dunedin Rhododendron Festival Trust, Trustee of the Otago Air Ambulance Trust and a Member of the University of Otago Applied Sciences Advisory Board.
Peter McDermott has a background in banking and finance and formerly held senior positions at BNZ and National Australia Bank. He has had extensive banking experience in New Zealand and offshore markets, and studied financial innovations at Harvard Business School. Peter is a director of a number of private companies including First Mortgage Managers.
Together with online auctions, fundit.co.nz features a range of home loan calculators, information from sorted.org.nz and current news updates from New Zealand's home loan market.
Lenders bidding on fundit.co.nz are:
BNZ
Kiwibank
First Mortgage Trust
Loan and Building Society
Number 8 Mortgages
Southern Cross Building Society
Southern Cross Finance
Southland Building Society
Marketing Contact :
Jason Henry
021 674 367
Jason@chillimarketing.co.nz
