Instant home loan approval – are you eligible?

4 minutes

March 2022: Since this article was published Nano has expanded its eligibility criteria to include household incomes of over $100k and LVR of 80% or below.

While other lenders struggle with long turnaround times and clunky approval processes, fintech Nano has launched a new home loan where loan approval is granted on the spot. What’s the catch?

The new home loan is being offered by Nano, which is “not a traditional lender”, co-founder Andrew Walker tells Finder.

“It’s a financial technology company that employs advanced data and innovative digital technologies, to offer consumers better financial services,” he explains.

Nano’s first home loan product is being offered with a very competitive variable interest rate of 2.19%. Crucially, its streamlined online mortgage process promises application approvals in just minutes – not weeks or months, with some lenders currently mired in backlogs – by offering an all-digital, paperless experience.

“Nano digitally approves home loan applications within minutes, not months… We use state-of-the-art technology to assess data on applicants’ financial transaction history to build a risk profile, and assess the ability to service a home loan [immediately],” Walker confirms.

“This means that, unlike traditional lenders, Nano does not require applicants to complete lengthy application forms, upload pay slips or provide 12 months’ worth of statements. Nano offers an intuitive, smart, digital experience.”

It almost sounds too good to be true. In a hyped up property market environment, where loans are taking anything from a few days to a few months to be processed, I had to wonder – how are they pulling off such a feat?

How to get immediate home loan approval

Traditionally borrowers wait anywhere from a few days to a few months for the bank to process their paperwork and provide a conditional home loan approval.

Nano side-steps this clunky process by introducing a handful of criteria that applicants must satisfy. Essentially, it means this loan is only available to the lowest-risk customers in the market.

“In this initial phase, Nano is starting with home loan refinancing to savvy, low-risk and digital engaged customers,” says Walker, who co-founded Nano with a fellow former Big Four bank executive, Chris Lumby.

“Product offerings and eligibility criteria will expand in the future, but the current criteria mean applicants need to have an LVR of 75% or below, and a minimum household income of $150k or above, with at least $100k from a Pay As You Go (PAYG) source.”^ [ed: see footnote]

To summarise, this means you need the following in order to qualify:

An existing home loan. This mortgage is only available to refinancing, rather than new customers. This is likely because refinancers have a proven credit history and demonstrate that they can handle the financial responsibilities of managing a mortgage.

A loan to value ratio (LVR) no higher than 75%. Your LVR reflects how much of the property you own versus how much debt you have. On an $800,000 property, a 75% LVR means you have a loan of $600,000 (75%) and equity of $200,000 (25%).

A PAYG income. If you’re self-employed or work as a contractor, you’ll need to buy this property in conjunction with someone else who earns a regular income of at least $100k, with full-time employment. This is because full-time employment is considered more stable than contracting or self-employment.

A clean credit history. It goes without saying that to be approved for this type of low-risk loan, you need to have a clean credit history.

There are a few hoops to jump through, but if you fit the criteria, you could be eligible for a home loan that you can apply for through your smart phone, get immediate approval, and pay a low ongoing interest rate.

“Nano has removed the high costs of servicing loans that comes with the outdated processes and legacy systems used by other lenders, and we pass this directly on to the customer through our low, competitive rates,” Walker tells Finder.

“The loan comes with an offset sub-account, which is linked to a Nano Visa debit card and the Nano app that customers can use to spend, pay and tuck money away, all with no fees. This account is linked to the customer’s home loan and helps reduce the interest charged by ‘offsetting’ the outstanding loan balance by the amount in your offset account, enabling customers to better manage their money.”

Potential borrowers are able to sign up to Nano’s Priority Access ahead of the full launch.

Originally published by Sarah Megginson, 7 May, 2021,,

^ This was Nano’s eligibility criteria at time of writing. Nano’s terms have since changed. Please check our up to date eligibility requirements.