Is it possible to get an online home loan in Australia? |
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| Posted By LendingHub on November 27, 2007 Filed under: Banking Industry, Mortages and Home Loans, Online Loans and Finance, Peer to Peer and Social Lending |
We are working on creating true online personal loans that feature a simple amortizing profile (of fixed monthly repayments) that don’t require the borrower to provide collateral (security against the loan).
Home loans are more complex products that require the asset to be mortgaged where the lender or bank will have a covenant over the asset that provides the lender with added protection should the borrower not be able to make the repayments.
At the moment (as far as we know) there is no financial institution that can offer an online home loan which is most likely due to the added difficulties asscoated with valuing ther property, physical inspections and often the need for mortgage insurance.
However potentially once the P2P or social lending market develops in Australia it may very quickly become possible to also offer online home loans.
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