Mortgage Market a fintech startup based in Johannesburg has secured a R10-million funding round led by IDF Capital for expansion.
Tim Akinnusi, the co-Founder had an aim of simplifying the process of getting a home loan when he founded the startup. The need was to eliminate unnecessary paperwork and inefficiency in the home financing process.
Founded in 2019, Mortgage Market has created a home online marketplace via its online platform for the users. In order to ensure that clients receive the best home loans on the market, the fintech start-up runs on the basis of a shared value model. The startup has developed a pre-approval software capability for home loans. Consumers are able to gain access to a free appraisal of credit and affordability. This extra feature gives users information regarding their ability and finances.
When a consumer has all documents on hand, they can easily start the application process via the Mortgage Market platform which takes less than 30 minutes to complete. There are numerous options for the clients to choose from. Clients can decide to save their application form at any point in the process and complete it at their own convenience. After coming up with a decision after comparing offers from the banks, the client submits their application whereby they are later on kept in touch to finalize the home loan process which takes up to two months for completion.
Mortgage Market provides a loan affordability based on the income of the consumer and the level of debt against the consumer’s income. The debt service ratio cannot be more than 30% of the gross monthly income the user acquires, whether single or joint. Banks are guided by the rules set out by the National Credit Act of South Africa which helps South Africans from getting in too much debt.
Transparency is observed by Mortgage Market as the users are provided with an opportunity to shop, compare and save up to 0.5% on their rates. Once the user choses their preferred home loan, the bank contacts the client for them to sign the paperwork at the attorney’s offices.Morgage Market gives clients a guaranteed money of R5,000 back on the value of their home loan in real money to spend on anything depending on the client’s choice.
The South African banks consider the users history with past and current editors before providing loans. The ability to make consistent repayments to other creditors creates more opportunity to be provided loans in the Mortgage Market platform. The available deposit amount the client has gives them a level of equity commitment in the property.