Lender sets sights on cash-strapped homeowners
A non-bank lender expected to float on the stock exchange by the end of the year signed up 100 real estate agencies nationwide to tap what it sees as a major business opportunity – lending to cash-poor homeowners preparing to sell their properties.
MoneyMe, which has positioned itself as a fintech company offering fixed instalment personal loans worth up to $25,000, introduced its new ListReady service after identifying a hidden potential in real estate advertising.
The move may also motivate more listings as reluctant vendors wait for further house price increases to make their move.
MoneyMe’s idea is to allow vendors to borrow up to $25,000 through their real estate agent for property marketing costs such as styling or minor repairs in the lead up to selling their homes. Repayments would be postponed until after the house is sold.
“If ever there were an industry ripe for disruption it’s the $6.6 trillion leviathan residential real estate sector,” MoneyMe chief executive Clay Howes said.
“It is one of the biggest opportunities I have seen . . . It wouldn’t surprise me if this is 50 per cent of MoneyMe’s value proposition in a very short time, it’s growing that quick,” Mr Howes added.
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