Nano extends its 10-minute home loan product to help home buyers avoid the lengthy process
Australian digital home loan lender Nano is disrupting the $2 trillion Australian mortgage market by extending its product suite to help home buyers and property investors navigate Australia’s complex housing market, with fast upfront full approval, not pre-approval.
According to the latest Australian homeowner research by Nano, over 70% said their lender took over a week to approve their home loan, while 1 in 5 stated it took over 3 weeks, citing “too much paperwork” and “slow response times” as key reasons for the delay.
The research also found that 1 in 5 Australian homeowners actually missed out on a property due to a delay in financing, sometimes even more than once – leaving them “angry” and “disappointed”.
This comes as a report published by CoreLogic showed that Australian properties were selling at their fastest rate in almost two decades, as the median time on market dropped to an all-time low of 20 days in November 2021 and has increased to 28 days in May 2022. This is still well below the rolling national 5-year average that peaked at almost 45 days on market.
According to Andrew Walker, Co-Founder and CEO of Nano digital home loans, “Traditional lenders slow approval times add an unnecessary layer of anxiety to an already complex process. When you combine this with a fast-moving property market, it makes an already stressful process even more daunting.
“If we compare home loan approval times to the median days’ properties spend in market, 20% to 30% of borrowers are at risk of missing out.
“Unnecessary paperwork and manual credit-underwriting slow things down, and it’s at this point that home buyers start to feel the stress and anxiety that comes with waiting for their loan to be approved.”
Today, Nano gives potential home buyers the ability to secure full approval in minutes not weeks. Their digital end-to-end home loan is not an online application, it’s a digital decision engine that delivers an answer in real time.
Their proprietary automated decision engine checks each borrower’s credit history, serviceability, and identity, as well as completing a digital property valuation, so full upfront approval can be achieved in minutes, not weeks.
“Our record time for full approval is sub 10 minutes, making it the fastest loan approval in Australia, if not in the world.
“We’re using technology to innovate so we can give borrowers confidence and peace of mind when buying a property’ added Walker.
The recently launched product enables approved home buyers to borrow up to $2.5 million or 80% of the valuation with terms out to 30 years at a competitive loan rate from just 2.24% per annum.
This follows from Nano’s success of saving Australian’s over $65 million in interest since launching their refinance product in June 2021.
Australian home buyers have a ‘fear of no approval’
For more than half (56%) of Australian borrowers the lengthy home loan approval process starts with pre-approval, with 94% believing it gave them the confidence that their loan would be approved faster.
However, despite having pre-approval, 1 in 5 missed out on a property due to a delay in securing financing and for 1 in 10 that happened more than once.
According to Walker, ‘pre-approval is still considered an important first step for many buyers, however it comes as no surprise, that the confidence pre-approval gives buyers is short lived, as pre-approval is not full approval.
“Our research shows that 33% of borrowers worried they would lose their deposit. Like one of our recent customers who came to us after his lender of 25 years said he had no chance of getting approved in time to meet his 21-day settlement clause. The fastest they could do was 46 business days, despite already having pre-approval.
“We can give buyers the confidence to purchase fast with full home loan approval in sub 10 minutes, bypassing the need for a pre-approval. Speed and ‘time to yes’ is the new battleground in lending, and we’re leading the way,” he added.
With their new offering, Nano customers have the additional flexibility of being able to get more than one loan and use equity from another property as cross collateral.
Nano also offers a low rate, fee free, full feature home loan at no extra cost. Every home loan comes with the added benefit of a free offset sub-account – which typically comes at an additional cost with other lenders.
“Our goal at Nano is to enable buyers to bid, offer and buy with confidence, so the home loan approval process doesn’t cause buyers to miss out on their dream property or risk losing their deposit.
“In the end, it’s all about giving buyers flexibility, transparency, and confidence for one of the biggest investments in their lives,” Walker concluded.
