 Bidding for your mortgage
Swimming great, Ian Thorpe, has invested in a new website, which matches mortgage lenders with potential borrowers. The site, which launched yesterday, allows banks and other lenders to bid in a live auction for the right to lend a borrower money, by offering the lowest rate they can to win the customers business. Borrowers register on the site and then banks and other lenders decide whether to bid or not.
Ziggybid.com.au is the creation of Glen Spratt, and works in a similar way to ebay, and the low rates and promises of excellent customer service are hoped to be the attraction to borrowers.
"I'm so excited by it," said Thorpe. "I was introduced to the concept about a year ago and loved it. It takes away all of the daunting elements about applying for a mortgage and introduces healthy competition into the market as the banks vie for your business."
Spratt, who was one of the founders of Wizard Home Loans, says 15 lenders will be on the online service.
He says the site will calculate a 'ziggyrate', which takes into account all of the fees and enables borrowers to accurately compare the true cost of the mortgage.
The site runs on similar lines to bidmyloan.com.au which also allows lenders to bid for borrowers' business, but not usually in such short timeframes.
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