New Player Stirs Market In Mortgages

Newcastle Herald

Wednesday February 18, 1998

HOME buying takes a lot of time and effort, as well as money.

But, thanks to a network of independent mortgage brokers, Hunter home buyers have the chance to make a saving on all three.

Known as Mortgage Choice, the service enables people to compare the loans on offer from more than 20 lenders - without even leaving home.

Established in 1992, Mortgage Choice is now Australia's largest independent mortgage broker, with more than 80 franchises in six States processing more than $100 million in mortgages each month.

A spokesman for the network, Mr Mark Raschke, said there had been a sharp rise in the number of companies offering home loans since the deregulation of the Australian banking industry in 1985.

`This has also led to an explosion in the different types of loans that are on offer,' he said.

For many people this resulted in confusion as they tried to select the best deal.

Mr Raschke said Mortgage Choice was able to alleviate much of that confusion.

`We come to a customer's house with a computer program that shows the loans on offer from more than 20 lenders, including the National Bank, the NRMA and a range of building societies and credit unions,' he said.

`Applying for a loan can be very intimidating and confusing but Mortgage Choice puts people in control of the entire process.

`The service is quick, easy to understand and free.

`A lot of people find it hard to believe that they are not going to be charged for something.

`But the Mortgage Choice service is totally free.

`We are paid a fee from the lender whom the customer chooses when we process a loan.

`And, because we understand the various institutions' lending criteria, around nine out of 10 of the loans we process are approved.'

© 1998 Newcastle Herald

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