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The online home loan-bidding platform is expected to announce its intention to expand its offering into business loans, after doubling the size of its broker channel.
Online mortgage borrower bidding platform Loanbid has reportedly doubled the size of its broker channel since its initial launch in 2018.
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The platform sees lenders, financial institutions and brokers “bid” for a borrower’s home loan, after taking into account the borrower’s provided information, including loan requirements and income.
The process involves the borrower filling in an online application, which lists their details and needs, at which point lenders and brokers enter a “virtual auction” for the borrower, providing their best bids.
The borrower then has access to each bid (in order of total cost of the loan) and remains anonymous to the lender/broker until they decide to move forward with a bid.
According to Loanbid, the majority of lenders in Australia have access to bid on the reverse-auction platform, both through partnerships with the company and through the growing number of participating brokers.
In addition to its recent expansion within the third-party channel, a representative of Loanbid told The Adviser that the company is shortly “expected to announce” its intentions to expand its platform offering from residential mortgages into business finance.
Loanbid co-founder Paul Dwyer said the platform intends to “put the power” back in the hands of the borrower, and forces loan providers to provide their best deal – as they only get to place one bid per borrower.
“Borrowers just need to wait for just 48 hours for the lenders and brokers to come back to them with a loan best suited to their needs and financial situation, with the borrower to choose the right loan,” he said.
Co-founder Darren Roach added: “Our platform provides an easy solution for time-poor borrowers, who can watch the real-time competition by the lenders for their loans unfold on their unique, confidential Loanbid dashboard.
“For the first time, borrowers are empowered to access and choose from Australia’s top lenders, within a couple of days, for their loan.”
Mr Roach added, “We have been fastidious in deciding on our partners on the platform to give our borrowers the best opportunity to ensure they get the right loan for their requirements and lifestyle.”
[Related: New lending service rolled out for brokers]
