For those not familiar with the term, a white-label loan is essentially a home-branded loan. Just like your favourite home-branded products you see in supermarket aisles, there is more than meets the eye – the white-label loan is more than its competitive price tag. White-label products are high quality and are developed by leading lenders – they are just packaged differently and therefore available at a sharper rate.
White-label loans are exclusively available through mortgage brokers and have rapidly grown in popularity over the past few years. So much so that over 85% of brokers now have a white-label offering for their clients. And, as brokers and customers both demand more from white-label, the products have evolved to be about much more than price, to also focus on flexibility, service and quality.
There is a range of choice in white-label – you can get variable, fixed or combo rate loans. They are particularly suitable for home-buyers looking for a simple, straightforward product as through white-label you can have access to the loan features you need (like redraw, debit card access and a customer care facility) and you don’t have to pay for bells and whistles you won’t use.
In addition, service is increasingly becoming a differentiator for white-label. Sourcing a home-loan can be the biggest financial decision a person ever makes and understandably, customers demand support from their brokers and rely on them as trusted advisers to guide them through the process.
A common misconception is that because the loan’s rate is more competitive, it does not come with the same level of support. Through a white-label loan, brokers can still access dedicated support teams – and ultimately give their customers quick responses to their queries and every chance of first touch unconditional approval.
Essentially, white-label delivers many of the same great features as bank-branded home loans, but for a lower cost to the customer. The quality remains the same, and the growing popularity of white-label is evidence that consumers are tapping into the opportunity and high-value of this product.
If you’re not sure if white-label is right for you, your mortgage broker can help you with this important decision. Because brokers have access to a myriad of loans from a range of different lenders – you can receive independent, unbiased advice based on their expertise and experience in the industry.