Powered by MOMENTUM MEDIA
lawyers weekly logo
Growth

Home loan rates to come under review

by Staff Reporter7 minute read
The Adviser

Staff Reporter

1300HomeLoan has launched the nation’s first free online home loan index, which allows users to rank home loan interest rates.

John Kolenda, 1300HomeLoan's managing director, said the index will help identify which lenders have been delivering the best rates over the past five years.

“This index is set to revolutionise the Australian home finance market and will enable mortgage holders to save tens of thousands of dollars over the life of their loan depending on which lender they choose,” Mr Kolenda said.

“It will be the central source for ongoing real data in keeping lenders honest as we continue to track and report on exactly what rates major lenders are delivering and whether consumers are benefitting or getting ripped off.”

Mr Kolenda said the index showed that blind loyalty towards a lender from consumers could be costing them thousands of dollars.

“Consumers and industry professionals, thanks to this index, will be able to see which of the major banks is really offering the best deals,” he said.

“The index will show not only which is the cheapest of the lenders today but which has been the cheapest over time.

“Using historical data sourced for many years and from various sources, the index can also show which lenders have passed on interest rate cuts in line with the RBA, how long they have taken to pass across rate reductions and many other trends.”

The index has been independently audited and is available at www.australianlendersindex.com.au

default

JOIN THE DISCUSSION

You need to be a member to post comments. Become a member for free today!

Comments (10)

  • <p>I actually think this is a very smart thing to do. It says the ALI has been audited which I believe as companies this size wouldn't take the risk in publishing non factual information. Whilst many of us have never been asked what a lender has charged historically this isn't aimed at brokers. I think the average man on the street has a right to know where their lender has sat over the last 5 years. I would be more worried about the spin banks put on their claims as opposed to a lead generation company. At the end of the day this is very beneficial to 1300 home loan subscribers and I think they are just doing their best in increasing lead generation for their partners. I'm not a 1300 subscriber but ill be joining soon now. Also as long as the data is factual I don't see what they've done wrong. In fact I think it does consumers a favor. Brokers have got software to compare what's around now, however I doubt no one has sat plotting where each lender has been over the past 5 years.</p>
    0
  • <p>Not a bad tool for my kit I suppose, at first I thought it wouldn't be good but in actual fact it can help show things our software can't.&lt;br /&gt;However, more things to think about adding such as policy, checklists, mortgage insurer, turnaround times, processes (ie. can/can't deal with assessor direct &amp; some lenders you must apply to through a broker), upfront valuations, flexibility of the loan &amp; packages etc.&lt;br /&gt;No matter how much info consumers have there is always a strong demand for brokers &amp; a place in the market. Plus there will always be the people who don't think so &amp; believe they can "do it themselves". So we may as well give them as much info as they want &amp; say go for it, don't waste my time by shopping me around then go to the banks anyway coz they think they know what they're doing! Should save me from some tyre kickers with any luck.. ;-)</p>
    0
  • <p>Great Question#7 Ian Shire Broker.Over the next quater there will be over 20 lenders added to the Australian Lenders Index.</p>
    0
  • <p>How about including other Lenders outside the Big 4 (Homeside is NAB and St George is Westpac). Make it more realistic as to where they sit.</p>
    0
  • <p>Thank you #1 Regional Broker for your feedback. You are right of course - in fact, there is a lot of data that us brokers have, which if not handled correctly, can be dangerous. There is no doubt the value of using a Broker which is reinforced through your many years of experience and the detailed understanding of not only rates but the broader dynamics of a home loan.&lt;br /&gt;In my view, it is wrong that many of us are caught competing based on interest rate and as you say, there is much more to a product than rate. And this is precisely why I wanted this data finally published. Any additional information we have access to will help strengthen our value to consumers and also help move a discussion with a customer solely focused on rate to a more constructive long term solution based on their individual needs.</p>
    0
  • <p>Another website making brash statements without backup ASIC where are you?</p>
    0
  • <p>I actually found a lot of the info on that site quite good. Good to be able to get a feel, based on historic figures, as to how a lender has performed.</p>
    0
  • <p>Another to send consumers to 1300 home loans, nothing wrong with that! But the SPIN (set to revolutionise the Australian home finance market), c'mon Mr Kolenda surely not even you could believe that!</p>
    0
  • <p>so structuring and making sure that loan is "not unsuitable" is now going to be done by the average bricklayer for his own loan? Good luck with anyone having a loan that is truly thought out for future issues and potential consequences for that customer. Oh wait, its ok, the customer is the one who pays the price as always. By the way, don't you think most industry professionals have access to information regarding who has the best facility for the customer? Who cares about rates 3 years ago. Not once in the last 15 years have I been asked about historical info and it is irrelevant in any case. Todays rates and what the customer thinks will happen in the future is all that matters and is all you can use to structure a loan for your clients.</p>
    0
  • <p>This is very dangerous as it appears to be a comparison of rates only , not terms conditions, post code restrictions and fees , break costs for fixed rates and will take NO account of the clients circumstances , requirements and future goals. This highlights why brokers have a role to plan in the market.</p>
    0
Attach images by dragging & dropping or by selecting them.
The maximum file size for uploads is MB. Only files are allowed.
 
The maximum number of 3 allowed files to upload has been reached. If you want to upload more files you have to delete one of the existing uploaded files first.
The maximum number of 3 allowed files to upload has been reached. If you want to upload more files you have to delete one of the existing uploaded files first.
Posting as
You have4 free articles left this month.
Register for a free account to access unlimited free content, or become a PREMIUM MEMBER to enjoy a wide range of benefits
You have 4 free articles left this month.
Register for a free account to access unlimited free content, or become a PREMIUM MEMBER to enjoy a wide range of benefits