By Eleanore D. Sanchez

With more home mortgages being put on the bidding block through online auction platforms, brokers and banks are neck-and-neck in trying to get the business, according to a recent report.

The intense competition is also driving down rates as more customers use these platforms to seek refinancing for their existing home mortgages or apply for new loans.

Among them is LoanDolphin, which has auctioned off more than $100 million worth of mortgages since the service launched in February.

The site works by allowing customers to refinance or apply for a new home loan at rates not usually advertised by lenders. Chief executive Ranin Mendis said its clients have saved “tens of thousands of dollars” on their mortgages using the platform. 

“It only takes three minutes for a customer to upload their home loan requirements (anonymously) before mortgage brokers, lenders and banks start bidding to offer them the lowest home loan rates in Australia,” Mendis further explained.

A competing organization, Joust, reported that it was able to auction off another $100 million in mortgages 12 weeks after going live.