Introducing Plans by UNO 🚀
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.
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:
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.
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.
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.
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.
Typically digital lenders shine in the parts of the process that are annoying to do physically such as
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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