Online mortgage auctions are growing as homeowners look for better deals

Mortgage holders can place their home loan on market to get a better rate, even though interest rates won’t change at the Reserve Bank board meeting tomorrow.

Live auction for your mortgage with both big banks and small lenders bidding.

This is the premise. JoustTwo ex-bankers have created a home loan market. It can help you refinance or get a new mortgage in just a few minutes.

The site has eighty percent of all lenders. These include the big four as well as smaller players that you might not have heard about.

Enter the address of your property, the amount you would like to borrow, as well as your income. Your identity will remain private until you place the winning offer.

Although you are not obliged to proceed with the auction at the end, it is possible that you could have negotiated a better deal for your money without all of the hassle.

Joust, a well-known platform has been around since many years. Joust has relaunched their platform over the past 12-18 months. They now offer live auctions, as well as a matchmaking option for home loans. Refinances are also on the rise.

ABS Lending Indicators revealed that July saw $17.22 Billion in mortgages being refinanced. This was 6 percent more than the previous month.

Although banks have increased fixed term four- and 5-year terms, there is still a lot of competition in the market. The average Sydney mortgage is $200,000 and there are low interest rates. Homeowners also want savings.

Joust CEO Carl Hammerschmidt stated the process was transparent.

He stated, “It’s fast, simple, and highly efficient for people getting a sharper speed than they are currently on.”

“It puts the power back in the consumers hands.”

Joust receives a commission from the lender for settlement and contact. It is very similar in concept to a mortgage agent.

They are primarily refinancers.

“If you’ve been with your lender for longer than two years, it may be possible that you are being charged a loyalty tax.”

Hammerschmidt stated, on average, refinancers can save $3500 per annum on their payments. This is a significant amount over a loan’s life.

Wayne Taylor used the process to save his home.

He was approaching 64 and had just divorced. The money was not available from many lenders.

“I actually saved the house.” In the long term I consolidated any other debts that I had… it allowed me to pay off my partner and I still ended up with a loan less than what I originally had and I paid it off in half the time,” the now 65-year-old said.

“When you are that age, they won’t lend long-term money to buy a home.”

Mr Taylor used the site’s “instant match” feature.

Lisa Holt, a time-poor individual, used a live auction to refinance a loan.

She said, “Being naturally lazi, I decided to get people to visit me.”

“I ended up with someone I’d never heard of before… I would never have found them on my own.”

Ms. Holt stated she was able refinance via live auction and save $150-$200 each fortnight. She also purchased a unit to house her parents.

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