Reasons to Consider a White Label Home Loan

You’re walking down a supermarket aisle browsing egg cartons. Some egg cartons are free range; others are cage-free. Some are expensive; some are cheap. Some are up-market branded; some are home branded. You have endless choices, flexibility and leeway to choose the eggs that are right for you.

Now, imagine this supermarket aisle offers home loans. You can browse what’s on offer with the same sort of ease, with a home loan professional to help you find the product that’s right for you.

The best thing about this ‘imaginary’ supermarket? It’s real, too. But instead of visiting a large warehouse stocked with products, all you need to do is visit your local mortgage broker.

They are the only one who can offer you a choice from a large variety of loans, both branded and unbranded.

The white label loan is essentially the home-brand product of home loans. Like other unbranded products, white labelled home loans aim to deliver the same great features as bank-branded loans, but at a lower cost.

And just like in supermarkets over the last few years, there has been an increase in the range of white-label loans on offer, with an increase in the quality of those products. The trend has grown exponentially, where white labelled products are frequently equal, or near equal, to the quality of their branded counterparts. Currently, white labelled loans are listed as one of the top product searches on many lending panels.

Mortgage brokers are the go-to professionals for these sorts of unbranded products. To demonstrate the tremendous growth of the market over the last few years, according to FAST in 2014, only 35% of brokers had access to the products from Australia’s largest white label lender, Advantedge, compared to the end of 2015 where that figure grew to 85%.

But with so many other options on the market, why should you consider the white label loan to begin with?

1.    Simplicity

White label products are known for their simplicity. If you are a potential home-buyer looking for a straight forward or fixed rate loan, these types of loans should be something to look out for.

2.    Quality, cost-effectiveness and flexibility

Like branded products, they offer you all the features you need, for example; redraw, debit card access and a customer care facility. However, you won’t have to pay for additional features that you don’t want or are unlikely to use.

3.    Unbranded = no attachments

Essentially, you get a better deal because it’s not branded with the name of a big bank and won't carry the cost of providing access to an expensive branch network you might not need.

4.    Access only through a broker

You can only access white label loans through your mortgage broker, which means you are getting access to a product that many people in the market are unaware of. In this way, you can take advantage of your broker's professional expertise and advice.

5.    Save money

You can save money when you choose a white label loan. Contrary to popular belief, you won’t be compromising on quality or service. Despite the loan being unbranded, you still get access to experienced support teams and facilities.

At Select, we offer no-obligation, quality and free advice to help you reach your financial goals.  For more information about the white label loans we have on offer, contact us today on (08) 9417 3399.