Nano Home Loans Can Save You $ 75,000
Nano Home Loans was born from the idea that mortgages could be done faster, easier and better.
Launched in 2019 by financial experts Andrew Walker and Chris Lumby, the digital lender offers home loan approval times in minutes rather than weeks and offers some of the highest rates on the market.
Mr Walker said he and his co-founder saw the lethargy and primitive processes used in big banks and wanted to provide clients with a superior mortgage experience.
“We looked at the home loan process in particular and asked ourselves threshold questions like ‘why does it take six to eight weeks to get a home loan approved when the data exists to do it faster? “,” Walker told Savings. com.au.
“Why is the process so painful and unfair? And most importantly, why if such a large pool of profits comes from home loans, then why is the home loan process the most backlogged process that any of them have done?
“We asked ourselves these questions and realized there was a better way to do it. We can use technology, data and digital capabilities to turn the system around. “
What real estate loans does Nano offer?
Nano Home Loans offers homeowner and investor home loans for borrowers looking to refinance. Nano said they will be launching home loans for new borrowers in the near future.
Borrowers can choose to repay principal and interest or only interest with Nano. The digital lender’s comparison rate is exactly the same as their advertised rate, at the time of writing, as they charge no fees. There are no administration, account or transaction fees.
Check out some of the Nano Home Loans products in the table below.
Am I eligible for a Nano home loan?
If you are looking to refinance with Nano, you should:
Be 18 years of age or older.
An Australian citizen or permanent resident.
Have a good credit rating.
Have a Pay As You Go (PAYG) income of $ 100,000 or more.
Have a loan-to-value ratio (LVR) of 75% or less.
Have a loan amount between $ 100,000 and $ 2.5 million.
At the time of writing, Nano does not offer home loans to independent borrowers, but states that it plans to offer this in the future.
What mortgage loan features does Nano offer?
Nano offers a clearing sub-account with all of its home loans at no additional cost. Borrowers can access a Nano Visa debit card to use the account, which can be linked to Apple Pay or Google Pay. It offers instant payments and transfers, direct debits, international transactions with $ 0 exchange fees and no fees on domestic or international transactions. Nano said he would add BPay soon to facilitate bill payments.
Nano also offers the option of making additional repayments on your home loan at no additional cost.
Why choose Nano over the biggest lenders?
Mr Walker said Nano could offer a much faster approval time than major lenders, approving a home loan application in under ten minutes.
“We use data to make mortgage loans fast, simple and fair. Homeowners can refinance their home loans and get unconditional approval, not the application timeframe, the approval time in minutes, not weeks, ”Walker said.
“There is no paperwork, everything is electronic and can be done on your cell phone, anywhere, which is incredibly convenient.
“It’s not only convenient, but it’s also what customers demand, pretty much anyone can live their life on their phone, and home loans haven’t caught up, and that’s what we have done.”
He added that thanks to Nano’s competitive rates and zero fees, borrowers who refinanced saved on average just under $ 75,000 over the life of their loan.
No gimmicks and potentially no interest
Nano recently launched its “Inaction Figure” home loan, designed to represent the traditional “slow, confusing and painful” home loan process. The lender’s research found that 79% of Australians have had a negative experience with the traditional home loan process. Additionally, 55% found it slow and riddled with fees, and 72% found it confusing.
Mr Walker said the promotion was part of the lender’s initiative for fun and sums up the failings in the mortgage market.
“People are frustrated with the slow and tedious process, frustrated and confused by the jargon, the language of paperwork, the lack of certainty. The inaction figure was the epitome of everything we saw that was wrong in the industry, ”Walker said.
“Someone who talks jargon and nonsense, doesn’t give you straight answers and tells you that the process is going to take way too long is the complete opposite of what Nano stands for.
“People love it because frankly, they all relate to it.”
Source: Nano Mortgages.
Nano is also currently running a contest where four borrowers can win their interest-free home loan for refinancing with Nano, or sponsor someone who refinances. Nano estimates that borrowers could save up to nearly $ 200,000 over the life of the loan if they were to win. Two winners will be drawn on September 1, 2021 and two more on November 10, 2021.
How to apply for a Nano mortgage
If you are looking to refinance with Nano, simply download their app or go to their website. The lender states that it only takes 10-15 minutes to apply and you will need to enter details such as:
Personal data (ID, address, date of birth).
Details of your desired home.
Amount and duration of the loan.
List of debts and expenses.
Employment status and salary.
Nano will then digitally access your property appraisal from its appraisal partner, review your credit score and the value of repayments for the past two years on all credit payments, review your income and expenses, and verify your identity. .
Depending on your request and the details, the lender can then provide approval in as little as ten minutes, up to a few days.
Transparency and simplicity
It can be common to see a flashy advertised rate, designed to attract unsuspecting borrowers, that has a sky-high comparison rate that would force you to pay the fees through the nose.
Mr Walker said Nano seeks transparency and simplicity and urged borrowers to do their homework.
“Look closely at the comparison rates and don’t be surprised by the huge fees that put people at a disadvantage in the long run,” he said.
“We would love to have borrowers who experience this as clients because we cherish our clients and take care of them.
“We believe that excellence is at the heart of what we do. “
Photo by Paul Hanaoka on Unsplash
The entire market was not taken into account in the selection of the above products. Instead, a smaller part of the market has been envisioned, which includes the retail products of at least the Big Four Banks, the Top 10 Client-Owned Institutions, and Australia’s largest non-banks:
Products from some vendors may not be available in all states. To be taken into account, the product and the price must be clearly published on the website of the supplier of the product.
In the interest of full disclosure, Savings.com.au, Performance Drive, and Loans.com.au are part of the Firstmac group of companies. To learn more about how Savings.com.au handles potential conflicts of interest, as well as how we are paid, please click on the links on the website.
*Comparison rate is based on a loan of $ 150,000 over 25 years. Please note that the comparison rate only applies to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as draw charges and cost savings such as fee waivers are not included in the comparison rate but may inuence the cost of the loan.