A new startup called Hero Broker is launching, aimed at shifting the $2B in annual commission, that is paid to brokers, directly into the pockets of consumers.
Hero Broker provides consumers a personalised, direct home loan search & application alternative to mortgage brokers and banks. It considers a number of inputs, including; borrowing amount, type of loan and other features, with a wealth of educational support videos. It then presents the consumer with various options for them to choose from. The savings generated by not engaging in a broker are passed directly to the consumer.
Hero Broker Founder Clint Howen said the idea is really simple. “We just give clear and simple answers to home loan queries. We aim to let the customer help with the home loan process and we then reward them for their work. Our model is similar to AirBnB. What AirBnB did was to not be the hotel, but to let everyone else be their own hotel. We have the same mentality, just with mortgage brokering.”
The DIY option is a growing trend in Australia, with a recent survey finding that 34% of the people questioned would ideally prefer to undertake a home loan application 100% online (without any face to face interaction.) A further 33% said they would be willing to do so. That’s a staggering number of Australians seeking to opt out of consulting with traditional methods of obtaining a home loan.
Cameron Dart, CEO of Australian FinTech welcomes Hero Broker’s arrival. Pointing to record levels of household debt and the ‘10% deposit struggle’ that so many first time buyers face, Dart says Australians need every advantage they can get in this market.
“Aussies need fresh alternatives that are user-friendly and oﬀer greater transparency. Hero Broker does this, and they’re pioneering a new beginning that gives fresh hope to first time buyers.”
“Their work is yet another sign of a strong Fintech scene here in Australia, and how innovation can oﬀer new solutions to old problems across the country.”
In the wake of the Facebook scandal Hero Broker is also among the first companies in Australia to put value to people data.
We really care about peoples data, to be able to reward customers instead of middlemen is a really exciting concept that aligns with what we think the future of data will be and our concept to make banking for everyone not just a few. Mr Howen said.