Nano, the new non-banker home loan lender, offering 1.99 percent loans in 10 minutes
Nano, a new non-bank online lender has been launched, with the aim having a $1 billion loan book at the end of the 2021-2022 financial year.
Its marketing advises borrowers can secure a 1.99% home loan in 10 minutes for lower risk applicants.
Headed by the former Westpac executives, Andrew Walker and Chris Lumby, Nano is promising short approval times.
One of its first borrowing applications was done in just nine minutes and 41 seconds, the mortgage professional website MPA reported.
Nano’s system automatically values a property, checks credit history, performs an ID check and the mortgage’s serviceability.
Nano uses algorithms to sift through customers' banking data, instead of requiring payslips and bank statements.
Its initial loans will be to PAYG clients seeking to refinance with a loan to valuation of less than 75%.
The backing has come from NZ based Bolton Equities.
The non-bank, which suggests the lack of a branch network as a reason for their low fees, aims to disrupt the $1.9 trillion mortgage market.
Evans and Partners analyst Matthew Wilson recently noted many lenders had tried to disrupt home lending "with limited success."
But Wilson thinks the big banks will face a competitive battle from the likes of Nano and Athena Home Loans at a time when technology is more powerful, and the move towards digital banking has been accelerated by COVID-19.
The Nine papers recently reported only the Commonwealth Bank has expanded "its already enormous slice of the market, largely because it has the systems to say "yes" quickly to a deluge of loan applications."
National Australia Bank, ANZ Bank and Westpac had failed to expand their mortgage portfolios over the last six months, according to Morgan Stanley.
It pinpointed the standout performer as being Macquarie Group, outside the big four banks, growing at an annualised pace of about 30 per cent.