- Cements itself as a leading force in Australia’s rapidly growing digital home loan market
- Over 80% of demand coming from existing customers of traditional lenders
- Saved $79k per customer or $15 million in interest for all Nano homeowners
- Plans to launch a series of new products in H2 2021
SYDNEY, AUSTRALIA, 9 August, 2021 — Australia’s first truly end-to-end digital home loan lender Nano has broken through the $100 million in unconditionally approved loans in just over a month since public launch, helping customers save thousands of dollars in interest payments.
First launched to ‘Priority Access’ customers in April 2021, Nano officially opened its doors to the public at the end of June. Nano has received an overwhelming response for its innovative platform in a fatigued market where customers remain frustrated with sluggish loan approval times, complex processes and opaque pricing.
Co-founder and CEO of Nano, Andrew Walker, said: “To have reached this exciting milestone so quickly is a validation that the vision with which we created Nano – to make home loans simple, fast, innovative and fair – is clearly resonating with Australian homeowners.
“This is especially true in a pandemic environment where the rapid migration of customers to technology driven offerings has been expedited, he added.
According to Mr Walker, the stay-at-home orders have allowed customers extra time to reassess their home loan situation and identify refinancing opportunities for saving money on their interest payments, particularly in this time of uncertainty.
“Last year during lockdown we saw loan approval times blow out to over eight weeks as traditional lenders struggled to keep up with the volume of loan applications. We anticipate seeing this again as banks struggle with outdated technology and trying to balance housing market momentum with supporting customers. 2
“Being able to complete your home loan application digitally in your own time, outside of standard business hours, with no paperwork is a massive plus for customers during lockdown,” he added.
Borrowers turning away from traditional lenders
In a buoyant housing market, customers are increasingly disenchanted with traditional lenders and are starting to take control by seeking more attractive offers.
Nano’s proposition has also resonated with customers because of its 5-star rated app, offset sub account, Visa card and payments functionality allowing customers to use Nano for day-to-day finances.
“Nano is more than just a seamless experience with great rates. We offer customers the ability to live their financial life through their mortgage and manage all their day-to-day finances, Mr Walker said.
“We had one customer tell us that he plans to wean himself off his traditional bank account he’s had for nearly three decades, as he realised Nano provides him everything he needs. He now gets his salary paid straight into his Nano offset sub account, so he always has money available, while offsetting the interest on his loan.”
According to Nano’s analysis, over 80 per cent of all applications came from customers of one of the traditional banks, while the rest came from customers of other non-bank lenders, looking for more features and functionality.
Mr Walker said it’s evident that borrowers are turning away from traditional lenders as they have realised loyalty is hardly ever rewarded, and there are more competitive products on offer.
The average interest rate they switched from was just under 3 per cent, with an average remaining loan duration of 25 years.
Nano has successfully reduced its customers’ average monthly repayments by $263 per month, or put differently, with the same repayment amount cut the length of their loan by three years and four months. By switching to Nano, homeowners have saved on average $79k over the life of the loan.
“Based on these figures, we’ve saved all Nano homeowners $15 million in interest payments already and we’ve just started,” he added.
Australia has the world’s second-largest household debts currently sitting at an all-time high of 123.5 per cent of GDP.
Mr Walker said that reduced home loan repayments will help Australians reduce their debts faster. 3
“It’s a long journey ahead, but we believe Nano can play a part in moving the dial on Australia’s burgeoning household debt by helping borrowers reduce their interest outgoings” he added.
Research suggests1 high debt determines our lifestyle, makes us spend less and work longer. With that in mind, saving or offsetting any additional interest is considered an important financial strategy.
“At Nano, we have created a product with no fees that has all the functionality that most people need. With no overheads such as outdated branches and large and expensive head offices, Nano passes these cost savings directly to our customers,” he added.
Further research2 shows that 85% of Australian’s believe that the current system benefits the lender not the borrower.
“Nano is here to flip the system in favour of the borrower and bring financial fairness back to the industry” he added.
New products in the pipeline
Currently in market with a refinancing offer for owner occupier and investor loans ranging from variable interest rates of 1.99 to 2.59 per cent per annum, Nano is preparing to build out its suite of home loan offerings by expanding into new products in the second half of 2021 to meet the more complex needs of customers.
Nano plans to launch home loans for those buying, not just refinancers in Q4 this year.
“It has been a fantastic journey so far and we will continue to innovate and reshape the industry. Competition and innovation ultimately benefit the customer and that is what Nano is here to do” he concluded.
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