re Paul@PFI's comment, ....gumtree is cra* ...
>>Gumtree is owned by ebay<< since 2005
It makes some sense that they would let gumtree deteriorate - I suspect to encourage people to go to the more profitable ebay site
Although I took my first mortgage back in 1987, I've been around the mortgage industry professionally since 2000 and the savings and deals coming from flongle's mortgage contests have surprised even me.
The contest on my screen at the moment has a $627K mortgage. He's on a 4.89% pro-pack with a major so $395 annual fee and overpays @ $4K per month. That means his TIC (Total Individual Cost) assuming an exit 5 years from now is $144,667 in interest, fees and charges.
It's all O/O debt so ideally he wants an offset account, whether you want one for INV or not well...
Anyway, the deal he went with has an offset account, lender is regulated by APRA and the TIC for a 5 year exit, same payment of $4K monthly models to $127,998, so a saving of $16,669, or 11.5%.
The savings come from what lenders and brokers like to call "low customer acquisition cost", the ability to rate for risk and a platform that drives mortgage competition.
The article you linked to is a bit off topic, because it was written while we were still keeping flongle under wraps (the project started in 2010). flongle doesn't charge for seeing brokers, it charges for helping design, host and impartially compare the results of a mortgage contest.
In any given transaction, we have only one customer, the borrower, who pays us for professional, unbiased help and this holds us fully accountable. Both Self Serve and Human Help services come with a money back guarantee which you can also read about at the site. That means that if you've already found the best deal, you'll get peace of mind for free @ flongle... I must say, it does sound like you might have been on the industry site, when I think the one you want is the borrower proposition and guarantee @ flongle.com.au.
There are plenty of innovations rolled into flongle, but for me the most important ones are that flongle is totally unbiased and open market, which means that any lender and any mortgage broker can freely and discretely compete for your mortgage. The only ones that won't either don't know about flongle, or don't want to subject themselves to impartial comparison.
Having said that, we have over 50 members in our bidder community which includes brokers and lenders (bank and non-bank lenders) with ongoing conversations happening to grow this market as far as possible. This is one of the many areas flongle differs from Ian Thorpe's ziggybid which was simply a commission biased online mortgage broker.
flongle genuinely is a world first and third party independent mortgage advisers already use flongle as their tool of choice. These professional advisers only really started to surface once flongle became available because getting reliable lender info without being tied to them commercially was extremely difficult. flongle fixes that. There's still only five of them on the east coast, but that was true for mortgage brokers once too.
Anyhow thank you for the opportunity of setting the record at least a little straighter.
The only comment I find a little disturbing is the comment by CJay which calls our borrowers product.
They're people who recognise the value of independent advice, shopping an open market and want to do it with minimal time investment.
Founder - flongle
02 8599 8088
P.S. I have checked our About Us page and it's up to date apart from this year. The baby photos are only meant as a bit of humour.
I also guess financial institutions could easily afford to discount the ( initial and trailing ) commissions they normally pay brokers and still be in same position as if loan came to them thru a broker.
I think I remember reading about Michael Lee and another business of his which was a refund type brokerage where the consumer pays an upfront fee and then gets all commissions rebated or something like that. Lots of different models out there but all loans ending up in the same places!
Some real competition would be good.
I honestly don't see why someone would pay $400 for a service which is available for free...unless they have been declined elsewhere or have some other difficulty in getting a loan approved
A good broker will give you a choice of multiple lenders and show you the full cost comparisons including package fees etc. If they don't, then you're not with a good broker, so try again
Unless these guys are offering products not available from the brokers, then I don't see the benefit to the customers...
why pay $400 to be told the potential savings when you can get the info for free?
Both Fujitsu and Delloite
If you can find a broker who doesn't charge you a brokerage fee and is willing to post right here this simple statement without adding weasel words, I absolutely recommend you have a chat with them instead of or before using flongle. The statement:
My/our service is fully independent of the lender; we/I conduct impartial analysis on all deals; and but for working for you the borrower to get the most reliable and genuine deal, my/our advice and information is reliable totally unbiased.