New mortgage rate comparison site launches

Billed as “Australia’s first socially-powered mortgage assessment tool”, Benchmark aims to give borrowers the “opportunity to get the best possible deal on their mortgage”.

While the platform does not compare or suggest mortgages, the “socially-powered mortgage assessment tool” does enable borrowers to compare their mortgage rate to other borrowers with similar profiles by comparing factors such as age, location, income, and existing mortgage rate.

Comparison data is pulled from a database collated by aggregator AFG and the Australian Bureau of Statistics, among other sources.

Users are then given the option to renegotiate a better rate through AFG via the tool’s inbuilt integration, or through their current lender.

Benchmark finance director, Simon Milne, said that the tool could help borrowers save money on their mortgage.

He commented: “Many mortgage holders are not aware they could be eligible to refinance their loan at a better rate every few years — potentially saving them thousands. With Benchmark, users can simply enter their demographic profile and current loan rate, and in seconds find out what rates are being paid by other people just like them. This ultimately tells users how much they could potentially be saving if they refinanced their loan.”

Mr Milne emphasised that the platform was not a mortgage marketplace, though, adding: “We don't compare or suggest products. We don’t liaise with banks. We simply benchmark users against others like them, to determine whether they’re getting a good deal with their current mortgage.”

AFG has not yet issued a comment on its partnership with the Benchmark platform.

[Related: ‘Hard times ahead’ for home loan borrowers]