Nano digital home loans extends its 10-minute home loan product to help homebuyers avoid the stress and anxiety of the lengthy finance process
Over 70% said their lender took over a week to grant them home loan approval citing “too much paperwork” and “slow response times” as the key reasons for the delay
- Meanwhile, time in market for properties nationally has dropped from a median 33 days in early 2021 to 28 days in May 2022 – after reaching an all-time low of 20 days in November 2021, meaning 20% - 30% risked missing out on a property because their lender was too slow
- 1 in 5 Australian borrowers missed out on their property due to a delay in securing finance, causing them stress and anxiety
- Nano’s new digital home loan solution provides full loan approval (bypassing the need for pre approval), in a sub 10 minutes
SYDNEY, AUSTRALIA, 14 June 2022: Australia's first truly end-to-end 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 Nano1, 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. 1 Consumer research commissioned by Nano and Pureprofile in April 2022 of over 1000 Australians aged 30+ who have purchased a residential property in the past 5 years with a total household income of over $100,000 “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 Mr 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 Mr 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” concluded Mr Walker.
Media enquiries: Louise Priddle Honner +61 458 751 023 louise@honner.com.au
About Nano digital home loans Nano digital home loans is an Australia-based financial technology company licensed to provide loans under the National Consumer Credit Protection Act. It employs Nano’s advanced data and innovative digital technologies to offer consumers better financial services exemplified by simplicity, fairness and innovation. Nano Digital Home Loans is provided by Digital Mortgage Solutions Pty Ltd and has an Australian Credit Licence (ACL) 511406, meaning the business can provide lending products. www.nano.com.au