Nano hits $100 million in approved loans since public launch

Nano hits $100 million in approved loans since public launch

Australian digital home loan lender Nano has broken through the $100 million in unconditionally approved loans in just over a month since public launch, helping customers save thousands of dollars in interest payments.

First launched to ‘Priority Access’ customers in April 2021, Nano officially opened its doors to the public at the end of June. Nano has received an overwhelming response for its innovative platform in a fatigued market where customers remain frustrated with sluggish loan approval times, complex processes and opaque pricing.

Co-Founder and CEO of Nano, Andrew Walker, said, “To have reached this exciting milestone so quickly is a validation that the vision with which we created Nano – to make home loans simple, fast, innovative and fair – is clearly resonating with Australian homeowners.

“This is especially true in a pandemic environment where the rapid migration of customers to technology driven offerings has been expedited”, he added.

According to Walker, the stay-at-home orders have allowed customers extra time to reassess their home loan situation and identify refinancing opportunities for saving money on their interest payments, particularly in this time of uncertainty.

“Last year during lockdown we saw loan approval times blow out to over eight weeks as traditional lenders struggled to keep up with the volume of loan applications. We anticipate seeing this again as banks struggle with outdated technology and trying to balance housing market momentum with supporting customers.

“Being able to complete your home loan application digitally in your own time, outside of standard business hours, with no paperwork is a massive plus for customers during lockdown,” he added. 

Borrowers turning away from traditional lenders 

In a buoyant housing market, customers are increasingly disenchanted with traditional lenders and are starting to take control by seeking more attractive offers.

Nano’s proposition has also resonated with customers because of its 5-star rated app, offset sub account, Visa card and payments functionality allowing customers to use Nano for day-to-day finances.

“Nano is more than just a seamless experience with great rates. We offer customers the ability to live their financial life through their mortgage and manage all their day-to-day finances, Walker said.

According to Nano’s analysis, over 80% of all applications came from customers of one of the traditional banks, while the rest came from customers of other non-bank lenders, looking for more features and functionality.

Walker said it’s evident that borrowers are turning away from traditional lenders as they have realised loyalty is hardly ever rewarded, and there are more competitive products on offer.

The average interest rate they switched from was just under 3%, with an average remaining loan duration of 25 years.

Nano has successfully reduced its customers’ average monthly repayments by $263 per month, or put differently, with the same repayment amount cut the length of their loan by three years and four months. By switching to Nano, homeowners have saved on average $79k over the life of the loan.

“Based on these figures, we’ve saved all Nano homeowners $15 million in interest payments already and we’ve just started,” he added.

Australia has the world’s second-largest household debts currently sitting at an all-time high of 123.5% of GDP.

Walker said that reduced home loan repayments will help Australians reduce their debts faster.

“It’s a long journey ahead, but we believe Nano can play a part in moving the dial on Australia’s burgeoning household debt by helping borrowers reduce their interest outgoings” he added.