How Mortgage comparison websites make money

Comparison websites are investigated by bodies corporate control and consumption.

The Australian Competition and Consumer Commission reported in early December that while over 70% of people who research products online in the sectors under investigation uses a web site, most are skeptical of the results, since do not understand how websites make money or motivations of the operators.

The ACCC is considering the benefits and risks to consumers of using websites that compare various service providers in the areas of health insurance, telecommunications and private energy. The Commission on Securities and Investments Australia is reviewing websites that compare financial services such as mortgages.

Property Observer compared the remuneration models of various websites mortgage comparison. This is what we found.

• COMPARETHEMARKET.COM.AU

This site only compare products from participating brands, including each of the major banks, but only a few of the smaller banks and non-bank lenders.

Say. "If you decide to purchase a product or service from one of our participating providers, [Compare the market] may receive a commission from that provider This commission is paid by the suppliers of products or services and there is no additional cost to you for our service.
"It is important to note that our comparison tool is not influenced in any way by our trade agreements with our participating providers. We work hard to provide great options for their needs."

• FINDER.COM.AU

Makes money by selling some advertising space on their sites and through referral.

They say: "When you click through or apply with a financial institution, agent or distributor of our website, the provider pay us a small fee to give remission there not mark products only to list on our site. web, and do not get commissions in progress or end. "

• INFOCHOICE.COM.AU

Charges a fee for some institutions and advertisers are negotiated on a case by case basis.

Some companies pay subscription fees InfoChoice for the use of their data. Or, you can charge the development of fixed costs, licensing and hosting fees for the use of their financial calculators.

InfoChoice also receives fees from product suppliers advertising products on your website. The advertising fee may be based on a cost per impression or sponsorship fixed monthly fee. References website InfoChoice can also win the comparator a cost per click, cost per application or cost per lead for investigations. You can also take a commission on referrals to providers of advice from third parties, such as mortgage brokers.

• MOZO.COM.AU

As Finder.com.au, Mozo makes money through advertising and referrals.

They say: "Mozo make money in two ways Sometimes you have a fee to financial institutions when transferring potential customers to, for example, if you click." Go to site "once you have found a lot using Mozo. In some cases we link through financial institutions without charge a fee to provide a service to you. We also organize a small amount of advertising on the site to keep up with the latest offers. "

• RATECITY.COM.AU

Makes money from display advertising and by generating leads for financial institutions.

Drivers are created when consumers visit the website of the bank through a link from the website RateCity. RateCity is paid either to the click, or for transactions with the bank to open an account or apply for a product online, for example.

You can also receive referral fees from brokers or financial advisors where the consumer requests that their data is transmitted.