Just days after REA Group announced its third-party plans, rival Domain Group has today revealed that it will break into mortgage broking.
The Fairfax-owned property classified group will launch ‘Domain Loan Finder’ in partnership with mortgage platform Lendi.
The new home loan business will launch early next month and give consumers the ability to connect with more than 30 leading lenders, including major banks, coupled with access to a national community of home loan specialists.
“This is a very important strategic announcement for Domain, and means we are the first major real estate listings portal to move beyond helping our audience find a home to helping them secure a home,” Domain chief executive Antony Catalano said.
“Domain will be Australia’s first end-to-end property search and finance platform.”
The Domain chief noted that the mortgage broking market generates “about $2 billion a year in commissions”.
Earlier this week, REA Group acquired an 80 per cent stake in national brokerage Smartline and deepened its relationship with NAB to provide a national broker offering.
Domain, which is arguably REA Group’s biggest rival, has teamed with Lendi, a group with ties to Click Loans and Sydney-based brokerage Australian Credit and Finance, which aggregates through Connective.
“We’re excited to be working with Domain to bring the Lendi experience to a wider audience,” Lendi managing director David Hyman said.
“Tapping into Domain’s strong market position, we’re looking forward to bringing an integrated home loan experience to the property buying process.”
Domain Loan Finder will operate as a joint venture with Lendi’s parent entity, Auscred Pty Ltd, with Domain holding a 60 per cent stake. Domain said the amount invested in the JV “is not material and remains confidential”.
Lendi started in 2013 as an online and phone-based broking business and is backed by major institutional investors and venture capital.
[Related: REA broker play signals new era]