As your Joust progresses, you will see your leaderboard grow as banks compete for your business. If your Joust ends and you are not sure if these are the best home loan interest rates, don’t worry. You can always let your Joust end without selecting a winning bank.
Joust presents the rates and highlights the fortnightly repayments as each bid appears. Our goal is to save you money, not lock you into something you’re not sure about. Take your time. Once you click ‘Accept’ on an offer, the winning bank will contact you.
In days gone by, customers were rewarded for being loyal, however, today this doesn’t seem to be the case.
In this article, we weigh in on the loyalty tax and how Joust is helping homeowners to get the best rate on the market.
The practice of charging more on mortgages for older loans, compared to discounting for new clients has become such common practice, the Reserve Bank of Australia has called the banks out on it.
In its Statement on Monetary Policy the RBA has advised that for variable-rate mortgages, older loans typically have higher interest rates than new loans, even for borrowers with similar characteristics.
At a Glance:
Borrowers with older loans are paying higher interest rates than those with new mortgages
The RBA has found banks are offering discounts on their standard variable mortgage rates to new customers
Customers with a $500k mortgage can save up to $2,000 a year in interest
“This means that existing borrowers who are able to refinance with another lender or negotiate a better deal with their existing lender can achieve interest savings,” said the policy.
That is especially the case if your loan is more than four years old.
“Currently, these loans have an interest rate that is around 40 basis points higher than new loans,” said the policy.
“For a loan balance of $500,000, this difference implies an extra $2,000 of interest payments per year.”
RBA’s policy said some of the differences in rates between older and newer mortgages can be explained by a shift in the mix of different types of variable-rate mortgages over time.
“In particular, the share of interest-only and investor loans in new lending has declined noticeably in recent years and these tend to have higher interest rates than other loans,” said the policy.
“Nevertheless, even within given types of mortgages, older mortgages still tend to have higher interest rates than new mortgages.”
“There is little doubt that Australians with long-standing home loans are paying higher rates than those who refinance or seek a new loan,” said Mark Bevan, Managing Director of Joust.
“Every month, Joust helps more than 200 customers test the market.
“Customers who successfully refinance a $500,000 loan and reduce their interest rate by approximately 0.90 per cent per annum could save more than $300 per month immediately and in the order of $71,000 over the life of the loan.
Mr. Bevan said anyone with a home loan can use joust.com.au to put their mortgage on the market and see what the difference is between what they currently pay and what lenders are prepared to bid to win them over.
“This is the simplest and easiest way to see if you are paying a “loyalty tax.”,” said Mr Bevan.
A comparison rate includes both the loan interest rate and any associated fees combined into a single percentage so there is complete transparency in the total cost to you.
A comparison rate is calculated in terms of industry regulations and determined by the following:
A loan amount of $150,000
A loan term of 25 years
The repayment frequency
The interest rate, including known changes to the interest rate such as introductory rates, interest-only periods and loyalty bonuses
The fees and charges connected with the loan such as establishment fees, annual package fees, monthly fees, valuation/documentation/settlement fees
When comparing any finance offers you need to know all the fees and charges you are currently paying or will be charged. If an offer has the same advertised rate and comparison rate then you know that there are no hidden fees or charges.
Joust removes confusion for customers by only allowing its panel of lenders to submit a bid if their comparison interest rate is lower than the previous best comparison interest rate bid.
That means that all lenders are bidding on the same “best comparison interest rate” basis. This feature is what makes Joust truly revolutionary and unique as you don’t need to seek any independent advice to determine which is the best interest rate bid.
In the US and the UK most people know their credit score and are able to use it to negotiate more favourable loan terms. Right now in Australia – we are way behind.
Very few of us know what our Credit Score is and until Joust arrived in the Australian home loan market – there wasn’t a smart way for customers with good credit scores to obtain the home loan interest rate they deserve.
Right now in Australia – we are way behind
Consumers can now visit GetCreditScore.com.au which is a free service that allows Australians to obtain their credit score from Equifax. Go ahead – and check them out.
The home loan market in Australia is extraordinarily large. It is estimated to be worth $1.4 trillion and approximately 800,000 new home loans are settled in Australia every year. However, the Home Loan market in Australia is far from perfect.
800,000 new home loans are settled in Australia every year
Good customers who have stayed with the same bank for many years may be paying too much, whilst lower quality customers who represent a higher risk for banks frequently do not pay enough.
Here is where digital technology and a truly transparent online market place can fix these imbalances. Consumers with a good credit score can input their details to Joust and within minutes have Banks around Australia bidding for their home loan business – straight back to their mobile.
When good customers discover the fully transparent digital market place created by Joust they can benefit from their good credit history. Banks love good customers with an excellent payment record. Via Joust – these customers are being rewarded with live competition resulting in discounted interest rates offered on home loans. This results in an optimal outcome for the customer and an optimal outcome for the Banks. A marketplace that delivers optimal outcomes for all market participants is the definition of a “perfect market”.
World First Technology
Joust is extremely proud of it’s “world first” technology that creates a digital market place for home loan customers and lenders in Australia. So get on and use your good credit score to your advantage. Ultimately every customer should obtain the price that they deserve in a perfect market. The Joust platform continues to resonate with customers and the banks. Joust is leading the next revolution in retail lending in Australia.
Make sure that if you have a good credit score – you are not missing out. To find out more about how joust works – click here.
Are you completely lost when it comes to finding the best home loan rate for you? Are you unsure about the current home loan rates you are paying?
We understand the difficulty of negotiating with lenders and differentiating between them. What really sets them apart?
We believe Joust provides the most proactive and accurate home loan comparison Australia can offer. We give you a dynamic and simplified process to find the best home loan rates. After all, buying a house should be an exciting time in your life – not a source of frustration!
Here are some of the main benefits you will experience using our competitive platform:
Gain Transparency in Your Search For the Best Home Loan Rate in Australia
Home is where the heart is. Your home is probably your most valued and cherished asset, and your largest financial responsibility. Needless to say, it’s very important to find the best home loan rate available to you.
Joust has been designed to simplify your search and achieve transparency with home loan rates. If you want to know exactly what each lender can offer you, you shouldn’t have to spend your time going to each bank to negotiate the best deal.
Whether you’re negotiating by yourself or using a mortgage broker, you could be skeptical of the value of the home loan rate being offered to you. It’s a difficult process to navigate by yourself, and the independence of a mortgage broker is often unclear.
Joust removes the need for a mortgage broker or a home loan comparison site. We bring the lenders directly to you, offering their best home loan rates in an effort to win your business. By removing the middleman, most lenders can bid with great interest rates and without those annoying fees. This competitive tension creates transparency, as lenders are encouraged to offer their best rates directly to you.
Gain Empowerment as We Put You Back In Control of Your Finances
As lenders bid against one another for your business, you can forget about having to achieve transparency or clarity by yourself. We put you back in control of your home loan as our platform does all the work for you, bringing the banks to you. Joust also acts as a personalised home loan calculator without impacting your credit score. We have access to a specific Veda service that allows you to inquire privately. Your profile remains anonymous, giving out only essential details that lenders need to tailor a rate to you.
So if you’re looking for a home loan offer that won’t affect your credit score negatively, Joust can give you peace of mind.
Experience The Convenience Joust Offers in the Search for a Home Loan in Australia
Joust is a competitive digital marketplace, which means you don’t have to go from bank to bank finding your own way.
Joust is simple and easy to use, only requiring you to create a profile of basic information about yourself and the type of loan you need. After that, you can sit back and enjoy watching your bids roll in and lenders compete for you.
We have created the ultimate home loan comparison tool that gives you the convenience of targeted information and accurate offers – all through your mobile phone. With Joust, receive the best Australian home loan rates in your hand.
Would you like to learn more about how Joust can help you?
Building a healthy credit rating and then maintaining your credit score should be a very high priority for all Australian home loan consumers.
Every credit provider wants to know the likelihood of customers repaying a loan. So, the higher your credit score, the more confidence they will have that you will repay a loan in terms of the credit agreement.
Usually, when you apply for a new loan or credit facility, the provider will complete a full credit check with reputable credit bureaus such as Equifax. However, in many instances, these full credit checks can serve to negatively affect your credit score, so you always need to be vigilant. The last thing you want is to have an exemplary credit score that then gets marred by multiple full credit checks. All that hard work and diligence on your part would no longer shine through.
At Joust, we understand that you need to protect your credit rating. We therefore subscribe to the Equifax Access Seeker service, which does not have any negative impact on your credit score.
In fact, once you have submitted a Joust, you are the only person who will ever know that you have used Joust.
We perform an Equifax inquiry to extract your credit score, representing it in the form of a credit score band to the Joust panel of lenders. This will never be visible to any credit providers. So, they won’t be able to see that you are shopping around for the best home loan interest rate.
You are our number one focus, and we always strive to help you get the best home loan interest rate possible.
Joust can help you obtain lower home loan rates to refinance your home. When you use Joust, you avoid having to wade through the complexities of unnecessary or low-value home loan features.
This means you may not need help from an accountant or a mortgage broker. Many of our Banks bid with great interest rates with those annoying hidden fees and costs removed.
At Joust we believe good customers should be rewarded. Why do new customers receive lower home loan interest rates than existing long-term customers?
Many banks offer ‘honeymoon rates’ to new customers. These honeymoon rates are introductory rates and only last for a certain amount of time.
We believe it’s a great time to Joust – when you have an existing home loan. To benefit the most from the competitive tension that Joust creates, you’ll ideally have a reasonable credit score, a steady income and at least 5% equity in your home, or a 5% deposit.
Joust is saving good customers thousands of dollars every year by cutting out the middle man. Banks are bidding with great interest rates with most of those annoying fees and costs removed.
Under the competitive tension created by the Joust live auction environment, Joust opens up opportunities for lower home loan rates than you would normally have access to otherwise.
Using your profile information, banks can often do more than quote you a pre-existing, standard deal or rate. They are motivated to consider your profile then compete in real-time and beat rival offers.
Have you ever noticed how loyal some people are to specific brands? Fierce debates rage on over the superiority of Apple or Android; entire extended families may choose to own only a single brand of car.
Most Australians wouldn’t even consider bringing a Vegemite knock-off into the home, and some people refuse to drink a cola that isn’t Coke. Studies have shown time and again that we as consumers show a marked preference to companies, even when we can’t point to something as distinct as taste.
For many people, that brand loyalty extends even to our banking. Whether you’ve been with the same bank since high school, or the tellers all know your name, loyalty to your bank can be a great thing. It’s nice to deal with familiar faces, easy-to-use apps, and see our balances grow with favourable interest rates.
But have you ever wondered how much your bank values you as a customer? Whilst their tellers may like you, big decisions like loan terms and credit approvals rest on the hard numbers. Unfortunately, this doesn’t always work in your favour.
This is especially true for home loan applicants. When shopping for a home loan in Australia, you’re probably tempted to start with your personal bank. After all, they already know you, right? Your bank should love to have your business!
This could be one of the reasons why so many people have previously chosen to use a mortgage broker to find their home loan. But mortgage brokers charge banks high front end fees and are paid trailing commissions by the banks which adds significant cost to the value chain.
Fortunately, there’s now a better way.
Joust is an exciting online home loan marketplace for Australians. A growing number of banks are signing up for a whole new level of competition in the mortgage market. Joust delivers competitive tension and transparency that is unmatched either here in Australia or elsewhere in the world.
Joust helps to match banks with the exact customer they’re looking for – you.
Banks and lenders will look at your de-identified profile to determine the best home loan rates they can offer you, then place bids in your Joust. Best of all, every bank can see what the other banks are bidding so this allows banks to compete for your business in a completely transparent market place.
The potential savings can run into thousands of dollars per year – straight back to your pocket. It takes approximately three minutes to input your profile details, where you can set the time period for your Joust from 1 to 3 business days and have the bravest banks in Australia all battling to win your home loan business.
Since our launch in June 2016, we’ve grown to have twenty-one lenders creating competitive tension for more than $1.2 billion worth of home loans, helping thousands of home loan applicants buy and refinance their dream homes.
As you start your home buying journey, there’s no reason why you shouldn’t start shopping at your preferred bank – but you should absolutely not stop shopping there. Make sure you’re choosing the best home loan rate for you.
Did you know there is a major revolution happening in the Australian Financial Services Industry and you should be part of it? Otherwise, you may be paying too much on your home mortgage.
Many Australian home loan lenders have been stuck in the dark ages, the bad old days where they relied on a void of publicly available personal credit file information to charge high-interest rates on consumer credit products. Practices such as penalising consumers that made numerous inquiries with different lenders to obtain better home loan rates were common in the industry. Until recently, making multiple credit inquiries would diminish your credit score and your credit rating, often resulting in a higher interest rate offer.
Matt Symons, the co-founder of the successful start-up disruptive Fintech business Society One, led the charge for good customers to have access to better interest rates for products such as personal loans and credit cards through his innovative peer-to-peer lending platform.
Joust is another great step forward in the home loan revolution and has been brought to life to help good customers get the best home loan interest rates on a dynamic, obligation-free online marketplace (which is free to use). All this without all the hassle and running around normally associated with finding the best home loan interest rate. And, now you can cut out the middle man costs and trust issues associated with using a broker.
Did you know that using a mortgage broker means that much of the discount you could be receiving from a lender goes to that broker? It goes to them in the form of upfront fees and trail commission usually paid for the life of the loan. If you have complicated financial affairs, you may need a broker. However, many Australians have a relatively straight forward financial position and don’t need any advice, they just need to find the best home loan interest rate available in the market place.
And…who really has the spare time or patience to try and understand hundreds of products that you find on all the home loan comparison sites?
Joust brings the lenders to you. They battle it out to win your business, all while you sit back and watch them Jousting in-real time on your smartphone, tablet or laptop. Like Society One, Joust obtains your credit score by using the Equifax Access Seeker product which does not have any negative impact on your credit rating.
Now, you can enjoy the benefits of better home loan interest rates and Joust is extremely proud to be playing its part in the revolution.
The prospect of changing banks can be daunting. It seems like a long and complex process – but this doesn’t have to be the case.
There’s a general perception that it is very difficult to change banks. We need to reconstruct this image because the banks benefit and you’re not getting the best home loan rate you deserve. One of our ambitions at Joust is to give you complete transparency. This process has become possible with digital technology, and we can help you find a new lender and get the best home loan rates in Australia.
Finding The Right Home Loan For You Has Never Been More Convenient
At Joust, we want our digital platform to show you how easy finding a new lender has become.
Obtaining a better rate is easy through Joust. We have created an innovative competitive marketplace that is no longer time consuming or confusing.
The effort of researching and negotiating the best home loan rates is greatly reduced by using Joust. Experience the convenience of using Joust on your mobile device, and watch the lenders Joust for your business in a competitive, live transparent bidding environment.
From the comfort of your lounge or on the tram on the way to work, Joust eliminates the need to meet with various lenders to negotiate the best deal.
The small effort required to create a profile and interact with your home loan leaderboard is greatly surpassed by the benefits you are rewarded with. Experience the best home loan rates Australia has to offer you without the need for appointments or a mortgage broker.
Joust Gives You Transparency in the search for a better Home Loan Rate
Mortgages and home loan rates can be difficult to get your head around. Especially when you have to collect all the information about the current home loan rates by yourself.
But it can become even more confusing when you’re getting hard sells from multiple lenders, and different statistics from various home loan comparison sites. Not to mention all the different home loan calculator options.
Joust helps you move past the chaos of conflicting advice and gives you the concise, accurate answers you need, directly from the lenders.
When you start a Joust, lenders will bid based on your basic profile information. Joust removes the need for a mortgage broker and cuts to the chase. In a time-bound bidding environment, lenders present you with the information you want to hear, and we present it to you directly to your personal leaderboard.
Finding your new lender has never been so easy. Don’t be apprehensive in your search for the lowest home loan rate in Australia. Joust removes the struggle and provides you with the easy to use and accessible marketplace that brings the banks to you.
Deciding which home loan to choose can be tricky business, particularly when it comes to the stability of a fixed-rate or the flexibility of a variable rate.
Variable rates have traditionally been attractive due to their initially low rate, but how do you know if that rate will remain low? Banks have significant control in the setting of loan rates, and there is little transparency surrounding how these rates are calculated.
Tracker mortgages have rates which fluctuate in line with the official cash rate, so there is transparency regarding how the rate is calculated and fluctuates. However, according to bank executives, it wouldn’t all be good news if this type of loan is introduced.
Brian Hartzer, chief executive of Westpac, and NAB chief executive, Andrew Thorburn, stood opposed. They said that excessive premiums would be attached to tracker mortgages due to the high risk associated with them for the banks. This, in turn, would be unappealing for consumers, who generally opt for a fixed rate on their loan if they are after more security. Mr Hartzer went on to say that if banks offered loans with that much risk, they would be in serious trouble if the cost of funds spiked.
On the other hand, ANZ Chief Executive Shayne Elliott and Commonwealth Bank of Australia Chief Executive and Managing Director Ian Narev, were open to the idea – despite the high risk. Both agreed, however, that they wouldn’t be certain there would be much demand for tracker mortgages due to the high premiums.
They also wondered if the introduction of another loan option would make it more confusing for the consumer.
Finding the best home loan rates can be confusing, especially when you consider the many options and the general lack of transparency associated with many banks and mortgage brokers. Joust removes the confusion and provides unrivaled transparency, which makes the decision process much clearer for consumers.
We bring the banks to you with their best offer and the most relevant information on the table, which means no hidden fees and far less confusion. Providing a marketplace where you and the banks are able to see other offerings provides full transparency, which is often difficult to find when purchasing a home loan. This process is what makes Joust the simplest and most competitive platform to use when shopping for your mortgage.
Lenders can view your de-identified profile, so they can quickly bid with their best home loan rate based on your profile.
This means you don’t have to worry about making face-to-face appointments with multiple lenders. Instead, you no longer waste your time in long consultations with a sales representative and have the most competitive bids sent directly to your mobile device.
Enjoy the convenience of receiving less complex and targeted rate bids – all through the convenience of your mobile phone.
With Joust, you are able to search for some of the best Australian home loan rates no matter where you are.
2. Joust Saves You Time From Having to Compare Home Loan Lenders
Joust is much more than a home loan comparison site or a home loan calculator.
The best offers for residential mortgages can often be fleeting and limited by time-bound conditions – but you deserve access to the best home loan rates on your terms.
We have created a digital marketplace that saves you days of researching what some of the best current rate offers on home loans are.
By bringing potential lenders all to one place, you save valuable time that would have been spent going from bank to bank, or meeting with a broker.
We give you power as a buyer and flip the pressure of time back onto the lenders. When you create a profile with Joust, you are able to choose a time frame for banks to bid on your loan. Watching the bidding action on your live leaderboard is great fun. Once this period has closed, you get to see which banks have offered you their best home loan rates.
3. Avoid time-consuming Negotiations and Receive Home Loan Rate Bids That Reflects Your True Value
Joust provides an innovative digital platform where good consumers get the opportunity to have a customised auction for their home loan.
Under the competitive tension we create between lenders in this unique bidding environment, Joust opens up opportunities for interest rates you may not otherwise have access to.
This is made possible not only through the competitive tension but by cutting out the middle man.
Using your basic profile information, banks can do more than assign you to a pre-existing, standard deal or rate. They are incentivised to cater to your profile and to compete with their best interest rate bids.