A new mortgage platform has been launched that enables borrowers to complete the entire loan process online and get paid just like a broker.
Hero BroKer is an online platform that borrowers can use to compare home loan rates, as well as apply for a mortgage and receive approval for finance.
With a panel of over 40 lenders, Hero BroKer founder Clint Howen said the platform is similar to a comparison website, except that it allows the borrower to complete the whole process of getting a mortgage, as well as refinancing.
“We basically turn the borrower into the mortgage broker using technology,” he told The Adviser.
“We provide the tools and resources for borrowers to compare mortgage rates and apply using our online platform. We then consult with borrowers to find out their current circumstances and how they fit with the loan features – which is where the human element comes in – and our back-end support is there to make sure their application is compliant and that the loan is processed successfully.”
Mr Howen said borrowers are rewarded for doing most of the legwork in finding the right loan by being paid the same upfront commission that a broker would receive from a lender, while Hero BroKer takes the trail as well as the administration fee.
“It’s a huge incentive for borrowers to research and apply for a loan themselves,” he said.
“ASIC is reviewing broker commission structures, and what they want is more transparency – that’s what we’re giving them. We show borrowers the commission they’ll be getting paid from each lender.”
Having recruited a team of two loan writers for his back-office support team, and with two more set join, Mr Howen said the feedback from brokers who caught wind of HeroBroKer has been great.
“I know some brokers who initially hated the idea and said it wouldn’t be successful, but now they’ve come back to me saying it's an awesome concept and want to know how they can get involved,” he said.
Mr Howen said the idea came about from a bad experience he had with a broker five years ago, where he felt like he got “the raw end of the deal”.
“Being a Gen Y, I wanted to be in control, and wondered why I couldn't do the same legwork that a broker does,” he said.
“I went and pitched the idea in San Franciso, and that’s where I made some really good inroads and had some really big venture capital funds showing interest.
"However, I hit a few compliance roadblocks in the US, so I came back to Australia and launched it here,” Mr Howen said.
With Millennials being the target market, Mr Howen said he plans to launch HeroBroKer in Canada and the UK in the near future, followed by the US.
“We envisage that the loan process will be completely online in the future, and we want to be at the forefront of that,” he said.
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