Frequently asked questions
Why is Ziggy Better?
Ziggybid is a better way to get a home loan because Ziggy gets the mortgage companies to come to you! Think about it – finding a good mortgage is usually about shopping around until you find the best deal. The more time and effort you put into that shopping (which means making phone calls, attending negotiation meetings and reading through contracts) the better the deal.
Ziggy takes the time and effort out of finding the lowest mortgage rates by making the home loan lenders compete for your business. All you have to do is tell Ziggy accurate (and strictly confidential) information about the home loan you need. Lenders will line up to give you a better deal, and the Ziggy Rate will help you quickly identify the best loan for your needs.
How much does it cost to use Ziggybid?
To keep our lenders keen, we can only accept auctions from serious borrowers. That’s why we’ll be charging a nominal $9.95 fee to use Ziggy Bid from the 1st February 2009. (If you don’t get a bid – no fee is charged). All fees are in Australian Dollars (AUD).
What is this Ziggy Rate all about?
The Ziggy Rate is the key to the Ziggybid system.
Ziggy knows all the tricks that home loan lenders sometimes resort to in order to win your heart (you know – the ones where you have to be a mathematical genius to work out which deal is better).
Ziggy makes it easy to compare one loan to another by giving each bid a Ziggy Rate.
The Ziggy Rate is the product of a mathematical process called “Net Present Valuation”. Net Present Valuation is used by financial professionals to calculate all the costs of your home loan (i.e. set up fees, mortgage insurance, early repayment fees and interest rates) and convert them back into their true worth in today’s money. The Ziggy Rate ranks the bids you receive in order. You can choose your winner from the three bids with the lowest Ziggy Rate.
Who will bid for my loan?
Most of the winning lenders are major banks. However, any Australian home loan lender can join Ziggybid if they meet with Ziggy’s strict lending standards. You can see a list of the banks and credit unions, non bank lenders, building societies and mortgage brokers - click here to see a full list of Ziggy Lenders.
How long will my auction take?
It’s up to you. You can choose a minimum auction period of 24 hours, up to a maximum period of seven days. Ziggy recommends you keep the auction open for at least three days so as many lenders as possible can bid for your mortgage.
What type of loans are available?
You can auction any home loan you need as long as it is secured by a residential property located in Australia. Ziggy covers home loans, investment property home loans, residential land loans and residential construction loans – including re-financing. (At this stage personal loans, car loans and loans secured by commercial property are NOT available on Ziggybid).
Do I need to accept the lowest bid?
Once the auction has finished Ziggy presents you with the three best-priced mortgage bids that meet your requirements. You can choose from any one of these three bids. (Of course, you can elect not to choose ANY Ziggy bids if you are not satisfied with them).
What happens once I select a winning bid?
It works a little bit like online dating! Ziggy will let the successful bidder know your contact details. They’ll get in touch so you can finalise any paperwork needed. This will include verifying the information you gave to Ziggy during your online consultation.
Does a lender have to honour their bid?
All lenders are required to submit bids that they can honour. Any home loan lender who submits a bid and does not honour it will have their credit rating downgraded, which will affect their future business. (Of course, if you provide false or misleading information to Ziggy, then lenders are not required to honour their bid).
Why do I get multiple bids from the same bank?
Ziggybid allows mortgage brokers to bid for loans and they usually know which lenders will offer you the best deal, they may also compete among themselves to win your business by offering you cash rebates.
How Does the Ziggy Rate differ from the comparison rate?
The comparison rate is a formula that is designed to assist borrowers comparing the cost of home loans but it has a few short comings as it does not include early repayment fees, mortgage insurance premiums and is calculated over a standard period of 7 years. The Ziggy Rate is similar to a comparison rate but because lenders input all costs it includes early repayment fees, mortgage insurance and is customized to your selected time period of between 1 and 7 years.
Why didn’t I get lots of bids?
At an auction you only get a new bidder making an offer if they can beat the last bid made. This is why in many cases you may only receive a few bids – it doesn’t mean that you have not tested the market it usually means that your early bids have wiped out the competitors
Am I committed to a bidder once I accept their bid?
You are provided with the choice of the lowest 3 bidders, once you accept a bid they will contact you to finalise the loan. If for some reason you do not wish to proceed, you may withdraw at your discretion.
How do I see the details of a bid made?
The details of each bid can be viewed by clicking on the Ziggy Rate hyper-link, this displays the exact break down of the loan bid, including: interest rates, ongoing fees, establishment costs and early repayment fees.
This is found in your Borrower Centre, under Current Bids - see the image below.
