The site does a similar job to what brokers provide, Foote says. However the difference is that with Fundit the negotiations are transparent.
"Rather than having no visibility of their home loan negotiations, Fundit gives borrowers direct access to lenders in a secure independent environment that delivers true market value and competitive offers. They can see every offer that's placed on their auction and make an informed decision based on those offers," she says.
"We're turning the home loan market on its head," Foote says. "Instead of going cap-in-hand to lenders or hoping a mortgage broker will get them a good deal, Kiwis can now auction their own home loan privately for free at fundit.co.nz and watch the market compete to offer them the best deal."
A distinct feature of the site is that details identifying borrowers and lenders remain anonymous throughout each auction. This enables all lenders to compete on a level playing field no matter how big or small they are, and ensures borrowers aren't influenced by big brands or advertising campaigns in their decision to choose an offer.
Once a bid is accepted, details are shared between the successful lender and borrower to enable the offer to be finalised.
The two biggest lenders involved in the site are BNZ and Kiwibank - neither of which deal with brokers. The other six are First Mortgage Trust, Loan and Building Society, Number 8 Mortgages, Southern Cross Building Society, Southern Cross Finance and the Southland Building Society. "Fundit have created an independent, transparent and level playing field which allows customers to evaluate borrowing options, while maintaining a direct relationship with their chosen mortgage provider," BNZ general manager strategy and marketing, Blair Vernon, says.
Foote is the chief executive of the business, but it also includes some well-known business people including former Russell McVeagh partner Alan A'Court, Eion Edgar who chairs sharebroking firm Forsyth Barr, Fisher and Paykel Appliances deputy chairman John Gilks and Peter McDermott who has a background in banking and finance and formerly held senior positions at BNZ and National Australia Bank.
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