The Australian fintech getting rid of the mortgage brokers

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  • Fintech Joust connects home loan customers directly to more than 20 lenders, saving time and money.
  • The startup aims to disrupt the mortgage broker channel.
  • Real-time auction platform drives competition and transparency to deliver lower interest rates.

Joust, an Adelaide fintech which cuts out fees to mortgage brokers by linking home borrowers directly with lenders, has launched an equity crowdfunding campaign to raise $2 million.

The platform, aimed cutting out the middleman and disrupting the $2 billion in fees paid to mortgage brokers each year, has more than 20 lenders bidding in real-time to get the business of prospective borrowers.

“Joust is not a comparison site with a myriad of static rates, it is also not an online broker or aggregator,” says Mark Bevan, Joust co-founder and CEO.

“We are a revolutionary market-place model for home loan customers and lenders.

“Banks pay over $2 billion a year in commissions to mortgage brokers for the delivery of home loan borrowers, I know they want to pay less. 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 plans to spend half the money raised on a marketing campaign, with the rest for product development and potential expansion overseas.

“The Joust platform is imminently scalable and, we believe it has significant growth potential both in its existing market and related markets,” he says.

“We currently operate only in the home loan space, but we are exploring offering new products through our platform, including insurance, car loans, and personal loans.”

The equity crowdfunding campaign is via OnMarket, one of seven platforms which gained an equity crowdsourcing licence from corporate regulator ASIC in January.

The new crowd-sourced funding legislation allows unlisted public companies the opportunity to raise up to $5 million per year from the crowd.

“As a fellow fintech disruptor we are delighted that Joust has embraced the new equity crowdfunding laws,” says Ben Bucknell CEO of OnMarket.

“The investors that come to our platform are searching for the opportunity to invest in early stage, innovative and disruptive companies and Joust definitely meets this description.”

The Joust equity crowdfunding offer is live via the OnMarket platform until August 3. The minimum bid size into the offer is $500.