Need to move fast on a home loan? Maybe it's time to consider a digital lender.

We all shop online, bank online, chat and socialise online, buy home or car insurance and plane tickets online - why not consider doing your home loan online? Imagine this: cutting down on paperwork, no more driving around looking for a parking spot to visit your broker at their offices, and best of all - possibly a quicker approval time. Now I know what you're thinking - is this even safe, will they even last, am I protected as I would be with one of the big four banks? These are all valid questions. And the short answer is, yes. Here's why.

What are digital lenders?

A digital lender is a lender who has an application process that is completely or predominantly over the internet, saving customers time and providing them with competitive rates. Although you may not have heard of a digital lender before, it doesn't mean they're untrustworthy. Most of these companies are owned or funded by a larger lender - even the smallest lender is required to adhere to Australian financial regulations. What you might not realise is that when you take out a home loan, it is the lender who is taking the risk - not you. If for some reason a lender closes, your home loan is likely to be sold to another lender. Therefore, this should have very little effect on your repayments and the only change will be the company servicing your loan. Here's a little more information about some of the digital lenders, including which organisations fund or support them, and the digital innovations they offer:

  • 86 400 - One of Australia's first smartbanks (a digital, branchless bank), 86 400 was acquired by UBank in January 2021.
  • UBank - This entirely digital lender is backed by NAB, one of the nation's largest banks.
  • Tic:Toc - This startup claims to be able to process your mortgage application faster. They're backed by Bendigo and Adelaide Bank. Not all digital lenders will work with a broker but UNO has a range of lenders including digital lenders so you can get the best of both worlds if a digital/online process is your thing If you are concerned about the safety of a digital lender, you should check that they have a Australian Credit Licence (ACL). Lenders should list their ACL number at the bottom of their webpage. This number can be cross-referenced with ASIC Connect's databases.

What are the benefits of using a digital lender?

Lower rates

Digital lenders have the benefit of lower overheads, as they don't have to run and manage in-store branches, therefore they can then pass greater savings onto the customer - you in the form of lower interest rates. Many of the digital lenders listed offer loads of innovative technology and a wide product range to suit a variety of customers.

Convenience

Digital lenders also have a heavy focus on delivering user-friendly websites and application portals that allow customers to speed through the process, offering faster approvals than traditional lenders. They also offer the ability to complete your mortgage application process from home rather than having to visit a bank branch.

Speed

Lenders who have a heavily digitised application process can process loans a lot faster than more manually driven lenders. In some cases they can offer unconditional approvals in under 24 hours for completed applications. They achieve this through use of electronic ID checks and automated verification of income, expenses and credit.

Less Hassle

Typically digital lenders shine in the parts of the process that are annoying to do physically such as

  • Verification of Identity; avoid a trip to the post office or bank branch
  • Mortgage Documents; sign all your documents digitally instead of having to find a decent printer and scanner
  • Valuations; a lot will rely on an online valuation instead of having to send a valuer around to your house
  • Digital account openings; no need to go into a branch to open or set up the bank account that comes with your new home loan

Are there any downsides?

For regional properties

Some smaller digital lenders aren't able to provide finance for regional property as they can be regarded as higher risk. However, UNO partners with over 30 lenders including those with access to finance rural property.
Thinking about financing a rural property? Get in touch with a UNO broker today.

How do I get started?

Online, of course! Why not start with a quick comparison check of the best available rates available to you, so that you can get a good picture of the best deal for you from over 30+ lenders, including digital lenders. Find me a home loan today.Or if you prefer to start with a conversation simply book in a call with our customer care team Book a quick call with our customer care teamBook a call in with UNO

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TESTIMONIALS

What our customers are saying

Gabe Windsor
October 26, 2023
What a fantastic experience using UNO Home Loans. Mike Parsons and the team were exceptional. Such an easy, hassle free experience, cannot recommend them highly enough. Mike Parsons was in touch every step of the way, and with him doing all the leg work, the transition to a refinanced home loan was a very easy one. Thank you!
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Laurisa Sticotti
July 1, 2023
Scott Wilkinson has been fantastic when dealing with my broking needs. He has held my hand through every step of the way and has made purchasing my first home a much more comfortable experience than I anticipated.
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Thusi Gamage
July 1, 2023
Awesome team, Very reliable and friendly. Scott Wilkinson is very experienced and knowledgeable.He guided us throughout the process and was available to help.
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Omar Zazou
June 1, 2023
I have worked with Scott Wilkinson to get my home loan and he has been a massive help to navigate my first home purchase. He has taken care of all the financial details and I didn't need to worry about anything. Highly recommend him for his professionalism, patience and support!
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Kelly O'Connor
June 1, 2023
You won’t find any broker better than Anita at UNO. We’ve told all our friends and family about her and will be using her for all our mortgages in the future! A stress free process from the start. She listened to our needs and was always available.
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Ashley Morson
We are truly grateful for uno home loans and our broker Karis Churchill. This is our second time purchasing a home with the help from Uno and both times have been a very positive experience. Our recent purchase had many obstacles due to different factors however it was our dream home and we were up for the challenge. Our broker Karis was a true support and went above and beyond. She communicated so well with our solicitor and the real estate agents. She kept us updated through every step and kept us motivated when things seemed impossible. Uno is very fortunate to have Karis as a broker and we would highly recommend her to anyone. Our family are so happy we are now in our new forever home. Thank you so much Karis and to the uno team!!!
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Ebubekir Demir
Thank you Eren for your quick and efficient turn around time to getting an approval for a loan. Will be recommending you to anyone that needs a quick and reliable loan.
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