Getting a mortgage through crowdfunding just got a little bit closer. Dutch startup Jungo received several compulsory permits of the Dutch financial watchdog Autoriteit Financiële Markten (AFM). With these, the company is allowed to procure mortgage loans .
20 percent of the loan is backed by the crowd, says Crowdexpedition, a research group looking into the added value of the collaborative economy. Consumers can join in with a minimum investment of 250 euro.
AFM allows Jungo to collect money from the crowd via its online platform, opening up a relatively new category of ‘consumer to consumer’ funding. So far crowdfunding has mainly been used to support business projects.
The startup hopes to launch it’s first mortgage this autum. It’s unclear how many backers have shown interest so far.
The startup, founded last year by Vincent van den Noort, promises backers an interest rate of 3,5 percent. A higher than normal rate, because the crowd funds the most risky part of the mortgage. The first 80 percent is provided for by institutional investors.
Competitors of Jungo include SamenInGeld and the MetElkaarhypotheek of Obvion, also approved by AFM.
Video by Crowd Expedition