MENU

Watch out Westpac, Kogan.com Ltd (ASX:KGN) plans to launch home loan products

This week Westpac Banking Corp (ASX: WBC), Suncorp Group Ltd (ASX: SUN) and Bendigo and Adelaide Bank Ltd (ASX: BEN) subsidiary Adelaide Bank announced plans to lift the rates on home loans out of cycle with the Reserve Bank.

The rest of the major banks are widely expected to follow suit in the coming days or weeks as they look to combat funding pressures.

One unlikely company that is coming to the rescue of homeowners is the fast-growing Kogan.com Ltd (ASX: KGN).

According to an announcement made after the market closed on Friday, the ecommerce company has entered into multi-year agreements with Adelaide Bank and Pepper Group to offer competitive home loan products to Australian homeowners and investors under a new brand, Kogan Money.

Kogan Money Home Loans is expected to launch in FY 2019 and will be the first suite of financial products and services rolled out under the Kogan Money brand.

Management advised that it aims to focus on simplifying credit and financial services for all Australians and making them more affordable through digital efficiency.

Key details include:

Source: Company presentation

No information has been provided in respect to rates, but management intends to provide details of its offering closer to the launch date. Though, judging by the way the company operates, I feel it is quite likely that Kogan Money will look to undercut the banks at a time when they are raising rates. This could make the company’s offering quite attractive to home owners.

Should you invest?

While I think it is a little too soon to make an investment decision based purely on this development, I already felt that Kogan’s shares were in the buy zone, so this expansion merely sweetens the deal.

I suspect the market may respond positively to the news when it opens for business again on Monday.

Looking for the next Kogan? Check out this top tech share that has been tipped as a buy.

ASX Tech Share – Real Winner from the World Cup

Earlier this year, millions of Australians set alarms and watched the world's biggest sporting event, the World Cup, play out. But did you know there was another Australian representative quietly succeeding as the world watched?

It's the start-up who have positioned themselves as the global leader in sports analytics. Motley Fool's resident tech expert has already upgraded the recommendation of this company's stock to a rating of simply "Buy More".

Click here to access this share. It's completely FREE!

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia has recommended Kogan.com ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.