The application and approval process for a home loan typically takes a glacial 22 days. A new Aussie fintech startup reckons it can cut this down to just 22 minutes. Here are the details.
Tic:Toc is an Adelaide-based startup that is looking to make the process of applying for a home loan as quick and painless as possible. The company's digital platform, which reportedly took two years to develop, automates all of the decision making that usually requires a human. This results in a much, much faster application and approval process when compared to traditional methods.
During the online application process, the site works out a borrower's suitability on the fly, calculating the property valuation, borrowing power, credit check, personal ID check and financials validation – all without the need to interact with human loan officers or deal with physical paperwork. This is achieved via the account aggregator Yodlee which digitally validates the supplied banking credentials.
The loan products available at launch have variable comparison rates from 3.69% per annum for owner-occupier, principal and interest agreements. There are options for fixed or variable rates and it offers offset accounts for both fixed and variable home loans.
Currently, the service can only offer you a loan if you have at least a 20 per cent deposit/equity for the property you want to buy or refinance. You also need to be purchasing a home in a capital city or major regional centre. (This currently excludes Tasmania and the Northern Territory, but Tic:Toc are reportedly "working on it.")
“The on-demand economy has shifted customer expectations when it comes to personal finance, but home loans have been left behind,” explained Tic:Toc founder and chief Anthony Baum in a statement.
“By delivering the first genuinely online and fully automated home loan, Tic:Toc hopes to redefine the way customers secure home finance, and disrupt the home finance landscape on a world stage.”
You can find out more about the service over on the official Tic:Toc site.
[Via Business Insider]