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

Home loans from digital lenders are a popular option for home buyers looking for an alternative to traditional banks.

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.



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TESTIMONIALS

What our customers are saying

Sally Mackenzie
February 19, 2024
We chose Uno Home Loans from their impressive web site knowing we were going to find it hard, on many fronts, to qualify for a home loan. We were incredibly fortunate to be assigned Mike Parsons as right from the get-go, despite the complexities, he hit the ground running for us. He was incredibly knowledgeable, with years of experience but what was immediately apparent and impressive was that he was totally invested in getting us over the line, doing absolutely everything possible, including working around the clock. Despite it being a relatively small loan in the order of things, Mike never missed a beat, getting docs ready, following up and answering every request from the proposed funder immediately. He kept us informed on progress the minute anything happened, and again if anything needed to be done, he was right on it. In short, we highly recommend Uno, and Mike, knowing what a remarkable job he did, over many weeks, to get us our loan. He got us a great deal, with far better rates than we expected, so we couldn't be happier. In fact, without doubt, you'd be hard pressed to find a more personable, sharp, hard working, dedicated professional who clearly prides himself on getting his customers standout results.
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Rod
February 13, 2024
Scott and his team were just A-mazing. We felt supported through the whole process with the greatest quality and care. Every question answered right in time, or even before we asked. The process was smooth and we got the best outcomes we could have wished for.
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Angela Biddle
February 6, 2024
Our mortgage recently came up for renewal, and with interest rates skyrocketing we were looking for ways to minimise the impact. Michael and his team were proactive and attentive. Michael spent time with us to understand our circumstances. He found mortgage options that worked with our current financial situation and longer investment plans. He presented clear options, providing guidance where needed. He and his team were helpful and responsive - streamlining the process and keeping us updated through the negotiations. In the end, Uno did the heavy lifting and secured a significantly better rate than our current bank offered, all with friendly, personal service. We would highly recommend UNO Home Loans.
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Fotis Bikas
January 15, 2024
I cannot help but congratulate Scott Wilkinson of UNO Home Loans for being an absolute credit to both his company and the entire loans industry. Scott is a truly rare gem of a broker in that he will not only go the extra mile to achieve for each customer the very best deal, but his knowledge of all and sundry within the industry is unsurpassed (you will see what I mean if you speak to him). Additionally, Scott has a clear passion for imparting his wealth of information with each customer, whereas the conversation with most other brokers would simply be over if they could not get you the best deal. For me, Scott Wilkinson of UNO Home Loans stands head and shoulders above the competition and I feel privileged to benefit both from his expertise and professionalism whenever it is time for a refinance or new loan.
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Tomoharu Matsui
January 11, 2024
Michael Parsons helped me a lot when it's difficult to establish my capabilities in loan.
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Gillian Kearon
January 9, 2024
I highly recommend Mike Parsons as a mortgage broker. I couldn't fault the service provided by UNO. Thanks Mike!
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Taner T
December 20, 2023
Thank you Eren Tan for the amazing service and support. Our Loan was a little tricky and complex for other lenders but Eren managed to get it over the line in record time. His professionalism and dedication to our needs was exceptional. If you need a Loan no matter how complex your situation, make sure you contact Eren at UNO Home Loans.
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Karaipu Brown
December 20, 2023
Buying & selling a house at the same time is very stressful but Scott Wilkinson from UNO home loans made sure we knew what was happening & took most of the stress away. He always kept us up to date and if we had a concern or wanted clarification on something we were able to call him, if he didn’t know the answer straight away he will find out and contact us back.. now we are enjoying our new house and turning it into a home :)
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Chris Anderson
December 18, 2023
Just completed my first loan with UNO which was so much easier than with other other brokers I have used in the past. Our broker MIKE PARSONS always had time for me and broke things down for me in the simplest of terms and was very patient with my silly questions and my constant changing of plans. I wish I had used them in the past as I wouldn't be in the situation I'm in now. Can't recommend them highly enough. Thanks UNO and Thanks MIKE 😊
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Stephen Broomfield
December 11, 2023
To be able to recommend Scott Wilkinson for your mortgage broker was a privilege. We had deals fall through but Scott supported, guided and stuck with us, proper partnership. The whole team at UNO helped us and supported us right through to after settlement. Made sure everything was correct and how we are progressing. Communication was amazing and straightforward and easy to understand. Transparent. We can not Recommend Scott and the team as Uno high enough. Use UNO with confidence.
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Tarek Hussain
December 6, 2023
Can't thank Amy enough for her hard work, dedication and determination on getting multiple loans completed for me. I wouldn't hesitate in recommending Amy and the Uno team to any of my associates. Will definitely be back in the near future!
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Linda
November 3, 2023
If you’re looking for a trustworthy, thorough, reliable & knowledgeable Mortgage Broker then you must call Anita Callaghan! I can’t even imagine how stressful this process would’ve been without her. Anita went above and beyond to make sure she answered every question, responded to every text (even on weekends/after hours), and followed up on every detail to ensure we had all the info we needed. Anita is a true people person who is warm, empathetic, kind and supportive. You can tell she loves helping people and loves what she does, which is probably why she’s so good at it! Can’t thank you enough Anita, or recommend you more highly! You’re the best!
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