It is known as the “Tinder” of home loans. Joust, a fintech start-up which began in Adelaide two years ago, is a digital service that empowers customers to reverse-auction their loan.
The result is lenders compete in real-time to win your business.
Welcome to Joust.com.au – where borrowers apply for a home loan online, and over 20 lenders compete.
Borrowers fill in their details and create a profile with details of date of birth, driver’s licence, value of the property, postcode and amount of loan required.
With the driver’s licence details, Joust carries out a credit check on the potential borrower. If the borrower has a valid credit score, Joust then acts as an online go-between – connecting the borrower’s profile with about 20 lenders on its platform, mostly second-tier banks and credit unions, which then bid for the borrower’s mortgage business.
Founder Mark Bevan, who had previously worked for CBA and Westpac for more than 30 years, says that Joust now has about 2,200 customers who have used the service with home loans in excess of $2 billion.
“We check that the borrower has a good credit history and has a 20 per cent deposit on the property. Our customers are usually in the 30-40 age bracket, holds a steady job and is a low risk borrower. We disrupt the way lenders and consumers connect,” says Bevan.
The average home loan of a Joust customer is about $500,000.
Joust charges a one-off success fee or commission of .20 per cent compared to mortgage brokers who usually charge .60 per cent plus a trailing commission.
Joust fees are paid directly by the lender which wins the home loan business.
Banks pay more than $2 billion a year in commissions to mortgage brokers for delivering home loan borrowers.
As Mr Bevan says: “Joust has created a market-place for those who no longer want to deal with a middleman. We are the solution for banks and home loan consumers that want to circumvent the dated broker model. Our model is cheaper, simpler and more transparent.”
Joust’s lenders include St George Bank, Bendigo & Adelaide Bank, Suncorp, Bank of Queensland, aggregator KeyInvest Lending Services and credit unions.
The Joust platform which has brought disruption to the $1.7 trillion home loan mortgage market, is now looking for crowd funding to raise $2 million to expand the business and invest in a marketing campaign.
Mr Bevan believes that the Joust platform is scalable and is considering introducing new products such as insurance, car loans and personal loans.
For more information, see joust.com.au