CUT-PRICE MORTGAGE OFFER ONLINE

Sunday Telegraph, 16 September 2007

Money & You

A new online mortgage lender claims it can save borrowers more than $2 billion a year by cutting out broker commissions from its mortgage pricing.

Quickdirect.com says that mortgage rates from the big Australian banks are an estimated 0.56 per cent a year higher than necessary to accommodate mortgage broker commissions, which are among the world's highest.

But the company, founded by former high-flying banking analyst Hamish Carlisle, is refusing to deal with the broker middlemen, which means it can charge less to its borrowers.

It is already offering a standard variable rate of just 7.64 per cent, compared to around 8.32 per cent from the banks, plus it is waiving all upfront and ongoing fees.

The only fee borrowers may incur is the early exit fee, which Carlisle says is necessary to make up for the fact it charges nothing upfront.

Carlisle says: "I spent years at Merrill Lynch as a banking analyst and saw in great detail how the banks here operate and their relationships with brokers.

"I have not seen commissions this high anywhere else in the world and borrowers are simply not given a choice.

"The extra margin needed to cover broker commissions is paid by everybody that deals with the banks -- whether or not you have actually taken advice from a broker. So you could go straight to a bank after doing all your own homework and still end up paying a rate that includes broker commission.

"I don't think people should pay for advice they have not received and, if you deal with us, you won't have to. I'm here to add more transparency and fairness to this industry and it's already proving incredibly popular."

Borrowers can apply online and receive an agreement in principle, within minutes. You will retain the same consultant who guides you through the process until you complete your mortgage.

Call 1300 796980 or visit www.quickdirect.com.au