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An Australian fintech startup says it can grant a home loan in 22 minutes

Photo: Torsten Blackwood/AFP/Getty Images

An Adelaide fintech switched on its platform today following more than two years of development, claiming it can grant a home loan in just 22 minutes.

Tic:Toc says it has digitised every decision making step human loan officers go through, enabling the application and approval process to be shrunk down from the traditional 22 days.

“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,” said Tic:Toc founder and chief Anthony Baum.

A company spokesperson said five steps are performed in the background while a potential borrower completes the application:

  1. Property valuation
  2. Assessment of borrowing power
  3. ID check – they verify the customer’s personal ID (e.g. driver’s licence, Medicare card) against government databases
  4. Credit check
  5. Financials validation: after the customer enters their financial information (income, expenses etc.), Tic:Toc uses Yodlee to digitally validate what they’ve told them. The company receives read only copies of their transactions, and can verify (or decline) what the customer has told them about their financial information in minutes. If the customer is uncomfortable providing their banking credentials, they can upload their statements (as they’d provide to a bank or broker) and Tic:Toc’s credit assessors will do the assessment within a business day

The loan products available at launch have variable comparison rates from 3.69% per annum for owner-occupier, principal and interest agreements. The company said that its catalogue is aimed at borrowers that have at least a 20% deposit or equivalent equity.

Tic:Toc received $990,000 from the South Australian state government, plus an $9 million in total investment from private investors and Bendigo and Adelaide Bank. The bank is also underwriting the loans and Baum himself is a former treasurer at Adelaide Bank.

Bendigo and Adelaide Bank CEO Mike Hirst said that the platform is a world-first.

“There’s been a lot of hype about digital progress in finance, but we haven’t seen it to this extent in home loans,” he said.

“We believe it’s important for customers to have choice when it comes to how to interact with a financial institution, and we believe Tic:Toc offers an appealing alternative for eligible home buyers and home owners.”

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