Digital disruption paves the way for Nano’s $100m home loan milestone

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Digital mortgage lender Nano has announced that it has hit the $100 million mark of unconditionally approved loans - a milestone that comes just over a month since the lender hit the market.

Having officially rolled out its Variable Home Loan to borrowers in late June, Nano also launched with a mission of tackling what it sees as an ‘outdated’ lending process by championing both competitive rates and a faster approval process. 

And it appears the digital lender has already struck a note with previously bank-based mortgage customers, with Nano revealing that 80% of its applicants have come from ‘traditional’ banks.   

“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,” said Nano co-founder and chief executive, Andrew Walker.

With many Australians currently at home and subject to lockdowns, Walkers says that those looking to refinance their home loans may be attracted to online lenders like Nano and the digital processes they provide.  

“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 We anticipate seeing this again as banks struggle with outdated technology and try to balance housing market momentum with supporting customers,” he said. 

“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.”

Nano also appears to be trying to address issues beyond convenience though.

With variable interest rates starting at 1.99% p.a. (1.99% p.a. comparison rate*) for owner occupier refinancers, the lender's rates are among the lowest in the Mozo database at present. And unlike many loans, the Nano Variable Home Loan doesn’t come with  any upfront, ongoing or discharge fees. 

According to Nano, these features are already translating to significant savings, with customers managing to reduce their monthly loan repayments by $263 on average after switching over to Nano.

“Based on these figures, we’ve saved all Nano homeowners $15 million in interest payments already and we’ve just started,” said Walker.

“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.”

And speaking of the future, Nano already has plans to expand their offerings beyond refinancers, with the lender planning to release new home loan products for home buyers later in 2021. 

For now, if you’re interested in learning more about Nano’s available home loan product, check out our mini review below.

Variable Home Loan
  • Variable rates from 1.99% p.a. (1.99% p.a. comparison rate*) - 75% LVR
  • No upfront or ongoing fees
  • Extra repayments and redraws allowed
Find out more

Newcomer Nano has hit the Australian mortgage scene with a bang, offering a digital application and approvals process as well as some low variable rates. Rates on the Variable Home Loan start at just 1.99% p.a. (1.99% p.a. comparison rate*) for owner occupiers with an LVR below 75%, but there are also competitive rates for investors. Drilling down, the loan comes with handy features such as extra repayments, redraws and an offset sub-account, plus there are zero upfront, ongoing or discharge fees to worry about. And borrowers can manage their loan via desktop, a tablet or even from Nano’s mobile app. Just remember, the loan is only available to refinancers at present.

Want to see how Nano’s home loan stacks up against other rates? Head on over to the Mozo home loan comparison tables to view even more offers.

* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

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