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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What our customers are saying

Marlon Baena
July 22, 2024
Karis dedication to assisting with our home loan, even while I was on holidays, truly exemplifies a commitment to excellent service. It's the small things that often make a big difference, and it seems Karis attention to detail and clear communication were key to our smooth home purchase. I highly recommend using UNO and Karis for your home loan needs.
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Olivia Gill
July 18, 2024
We recently used UNO Home Loans to assist us with securing our new mortgage in AU (had moved here from NZ). We had Michael Parsons as our mortgage broker and he was extremely responsive and helpful the whole way through the process. Was a great experience and definitely recommend :)
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Yash Karma
July 18, 2024
Andrew Wyers and team have been amazing. Andrew is very knowledgeable, offers practical advice and he has been pivotal in helping me secure a mortgage at a very competitive interest rate. He was highly responsive to my queries and,being a new immigrant to Perth, he was very patient with my many many questions. An added benefit for me was his knowledge of how superannuation here works. A hec of a great guy to work with, reliable and he goes above and beyond. I would recommend highly recommended him, especially for new immigrants. In fact, I will be using him again very soon!
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Rosie Deiath
July 2, 2024
Karis from UNO was so supportive throughout the entire process of buying our first home. She was contactable at any time, and answered all our silly questions for us. We couldn't recommend Karis and her team enough, as it always felt like she was in our corner with our best interests at heart.
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Jack Mikkelsen
July 2, 2024
We dealt with Karis Churchill as the mortgage broker for our first home. Karis was so supportive and knowledgeable through the whole process! A+ mortgage broker. Definitely utilise her expertise if you’re buying a house!
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Kapil Baldota
June 25, 2024
Eren Tan is absolutely one of the best mortgage brokers in Melbourne! Keeping us well informed throughout the process. Eren gave us a helpful hand in managing to get our loan over the line in a quick and efficient way which is what we wanted and he delivered on that. Thank you Eren Tan!
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A M
June 21, 2024
I only have praise from my Uno experience! I was a broker sceptic, having done all of the hard work myself for my first two property purchases and sale. I'm now a proud broker advocate having used UNO (Karis Churchill) for two refinances and purchase. The value add Karis brought cannot be underrated! Not only has Karis got me the best rate, with a bonus cash back (nearly unheard of in this climate), she has done it with the least back-a-forth and with the least administrative burden on me (the thing that can deters people from refinancing to begin with). Karis is always on top of everything. Karis knows her stuff. She is the most responsive of any professional service provider I've ever used (my banker never text with an update at 7pm on a Sunday) without being overbearing. You know she's got your back and in my experience the value speaks for itself. Thank you to the whole UNO team, thank you especially to Karis.
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Leanda Cawdry
June 8, 2024
Very pleased with the outcome of this process, Michael Parsons and his team at UNO were helpful, communicative, and took all the stress out of the process of finding me a refinance deal that met my needs. Would definitely recommend Michael and UNO, and I already have!
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Glen Matthews
May 29, 2024
Regarding UNO Home Loan services. I had great experience with uno home loans, Michael parsons was my broker for UNO Home Loans we had excellent communication throughout the whole home loan application. If I had any questions on home loan application which were many were answered in great detail. He had the time to assist me in filling out endless application forms at anytime through the day or night which made the application process stress free. So I would strongly recommend Michael parsons from UNO Home Loans to try his services you will not be disappointed. Thanks to Michael parsons I have the lowest home loan interest rate I could ever hope for which I particularly ask for. It’s was a pleasure working with him. And will be using his services in the near future.
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Gillian Anderson
May 28, 2024
Thank you to Michael and UNO for their help in securing our home loan. I like the way they break everything down in simple terms to ensure that you can make the right decision. Michael was polite and very patient to help us get things across the line. We are now sitting in our first home away from rental circus. Can't recommend them enough. Thanks Michael and thanks UNO
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Andy Song
May 17, 2024
Amy has been absolutely wonderful as a broker. I would not hesitate one bit in recommending her services.
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Troy H
May 13, 2024
Scott Wilkinson did a great job as my broker. He was very patient and always happy to answer my numerous questions throughout the considerable period of time that it took to secure a suitable property. Would certainly recommend Scott and the team at UNO for anyone seeking a broker.
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