The funding brings the US digital mortgage lender’s valuation to $6 billion, up from $4 billion last November when it raised $200 million during a Series D round, per TechCrunch. Better.com offers proprietary mortgages via a fully digital and commission-free loan process. It also integrates its offering into the platforms of partners like Ally Bank to improve their mortgage processes.
Pandemic conditions over the past year drove demand for Better.com’s digital solution, boosting its valuation amid record-breaking loan volumes.
To propel its growth, Better.com should target fintech startups looking to add a mortgage offering. Better.com is already partnering with banks to digitize their mortgage processes, but increased consumer demand for digital mortgage solutions could entice fintechs to add this offering as well, presenting new partnership opportunities for Better.com. Startups in other fintech hubs are already moving forward: UK digital wealth manager Moneybox is helping users find the best mortgage deals, while WealthSimple is planning a mortgage product in Canada. In the US, Betterment currently offers financial education on homebuying, but Better.com could position itself as the partner of choice for interested US fintechs to rapidly bring mortgage loans to market, helping it diversify its distribution channel.