Online auctions hit home loan market

It pitches 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, says the independent site enables 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.

“Instead of going cap-in-hand to lenders or hoping a mortgage broker will get them a good deal, investors can now auction their property loan privately for free at fundit.co.nz and watch the market compete to offer them the best deal,” Foote says.

Eight lenders led by major banks BNZ and Kiwibank have already committed to bid on the site.

Details identifying borrowers and lenders remain anonymous throughout each auction. Once a bid is accepted, details are shared between the successful lender and borrower to enable the offer to be finalised.

Fundit is backed by New Zealand businessmen Alan A’Court, Eion Edgar, John Gilks and Peter McDermott.