Online mortgage broker platform launches in Philippines

MANILA, Philippines — Mortgage broker Nook yesterday launched its online platform, which seeks to provide a seamless loan application process for Filipinos looking to purchase housing units.

“After more than a year of preparation and development, Nook is officially launching today and we’re bringing mortgage brokering services to the Philippines’ housing loan market,” Nook chief executive officer Chris Elder said.

With the use of Nook’s platform, Elder said borrowers would be able to compare loans from different banks, and evaluate which is the best deal for them.

It also guides users through the application process – from pre-qualification to bank approval – free of charge.

“Applying for a home loan here in the Philippines can be a tedious and intimidating process,” Elder said. “We aim to address this with Nook. We offer users an end-to-end platform, from property search to bank approvals, empowering Filipinos to gain seamless access to financial options available to them.”

Mortgage brokers are companies who have established partnerships with multiple banks and act as intermediaries between banks and borrowers. They help clients find the right loan, and guide them through the housing loan application process.

Nook, in particular, has partnered with an initial list of eight local banks, namely, Asia United Bank, BDO Unibank Inc., BPI Family Savings Bank, Bank of Commerce, CTBC Bank, China Banking Corp., Rizal Commercial Banking Corp., and Security Bank.

Elder said five more banks are expected to join the platform this year.

He said partnering with Nook would help banks save time that would have otherwise been used to assess unqualified loan applications.

“Banks effectively outsource the finding and qualifying of new loan customers to Nook,” he said.

According to Nook, the company decided to operate in the Philippines, in recognition of the need for an easier and more efficient property loan application process in the Philippines.

This is amid the increasing purchasing power of Filipinos, and the projected surge in both office and residential demand from locals and foreign nationals alike.

Nook said residential real estate loans are growing at 10.6 percent year-on-year, with 73 percent used for the purchase of new housing units.