As the nation’s obsession with property grows, so too does the number of online services connecting prospective buyers to home loans, with Tic Toc the latest to launch in the space.
The startup, founded by former Bendigo and Adelaide Bank executive Anthony Baum, stated it is able to approve a loan in just 22 minutes thanks to a ‘digital decisioning system’ that can approve a customer’s online application almost in real time, with no need for input or assessment from a human.
This decision-making system incorporates, among other things, a property valuation, ID check, credit check, and validation of the applicant’s financials.
With this, too, Tic Toc stated it is able to pass on cost savings to the customer, as it has no application, settlement, or valuation fees.
Baum said that the rise of the on-demand economy has shifted consumer expectations around personal finance, however he believes the home loan space has been left behind.
“We believe customers deserve a faster, easier and more transparent way to get a home loan, and Tic Toc can deliver on this promise,” he said.
“Other online home loan providers digitise only part of the process, so while their application may begin online, it ends in the exact same way every other traditional home loan process does.”
Tic Toc’s loans, aimed at borrowers with a deposit of at least 20 percent, are underwritten by Bendigo and Adelaide Bank.
Mike Hirst, the bank’s managing director, said the bank believes it is important for customers to have choice when it comes to their interactions with a financial institution, and as such Tic Toc offers “an appealing alternative” for eligible customers.
“Our bank is known for our partnering mindset, which gives our customers choice and makes them successful. Helping to bring this innovative approach to home lending to market aligns with our mission to help Australians own their own home,” he said.
In development for two years, Tic Toc received funding from Bendigo and Adelaide Bank, along with $900,000 from the Economic Investment Fund of the South Australian government’s Investment Attraction Agency.
Meanwhile, online mortgage broking startup HashChing today announced a partnership with online conveyancing service Titlexchange to offer the service’s conveyancing packages through its portal.
The service is currently being trialled with a collection of mortgage brokers in Victoria.
Atul Narang, CIO of HashChing, said the partnership looks to speed up one of the most time-consuming parts of buying a property.
“Borrowers are at the mercy of conveyancers, who can sometimes drag the process out unnecessarily and worse, charge more for their own delay,” he said.
“Since the whole procedure is completed online, it minimises the manual processes and paperwork associated with property exchange. We connect users with a local conveyancer the same way we connect them with a local mortgage broker.”
Image: Anthony Baum. Source: TicToc.