Fintech revolution brings in the era of 20 minute mortgages

You hit the apply button, change tabs, crunch through a quick episode of Brooklyn Nine Nine and check your inbox - congratulations, your home loan has been fully approved (and you haven’t even had to leave the couch).

That’s the new reality for Aussie customers on the brink of fulfilling homeownership dreams as Xinja - Australia’s first neobank - announced this week that it would soon offer home loans to customers after securing an Australian Credit Licence from ASIC.

“This allows use to give mortgages, to lend and give credit,” Xinja’s Chief Executive, Eric Wilson told Business Insider.

“We are bringing technology in from overseas and it will allow us to give you a completely approved mortgage — none of this pre-approved nonsense from the bank — in about 20 minutes from the moment you hit send.”

RELATED: Digital banking and neobanks

Mozo first reported on Xinja late last year when it announced it was open for a round of crowdfunding and it has made headlines again after Wilson announced that home loan products would be online and available to customers halfway through the year.

“We are raising our very first mortgages in late March early April. By May-June we will bring our first fully digital product online.”

20 minute mortgages available right now

Wilson’s claim of approving home loan applications in “about 20 minutes” puts Xinja in a very exclusive club of Aussie home loan providers tackling applications in a matter of minutes, rather than weeks.

Launching in July last year, Tic:toc made waves with a similar tech-enabled 22-minute home loan and was even recognised as one of the 50 emerging stars in KPMG’s Fintech 100 list.

With traditional turnaround times of as long as a few weeks, how are these two fintechs able to give you the ‘okay’ for your mortgage so quickly?

The answer lies with their tech. 

On its website, Tic:toc says its “robot” is behind the decision-making process and while there mightn’t be a little R2D2 looking over your application, it is true that the technology takes out the need for a human credit assessor - meaning super quick turnaround times and competitive rates.

Employing a similar model - that is as an online, tech-driven business without costly overheads - Xinja’s home loans could be an attractive option for Aussies who have already fallen in love with mobile banking.

“We are hoping that it will completely revolutionise the market here and give people the opportunity not to have to wait six weeks for the bank to deign to give them a mortgage,” said Wilson.

What’s next for Xinja?

Home loans aside, Xinja have other big plans for 2018.

Unlike Tic:toc, these guys aren’t just trying to change the home loan game but have a wider focus on all aspects of consumer banking.

In keeping with the original plan, a prepaid card - its first ever product - is set to be unveiled at the end of the month with the technology behind a transaction account also estimated to be ready by April or May.

These won’t go live however, until the new lender receives two further licences; an APRA-approved full banking licence so it can become a Restricted Authorised Deposit-taking Institution and an Australian Financial Services Licence (AFSL) from ASIC.

RELATED: The fintech revolution: who now assesses your personal loan application?

Oh and did we mention that Xinja is still crowdfunding? Yep that’s right, you can nab your own slice of this particular fintech over the next month with the crowdfunding round set to close on March 31.

“We have been so excited and humbled by the response to the equity crowdfunding offer, which has significantly exceeded our expectations,” said Wilson.

“It is indicative of the appetite for a new banking experience in Australia, and part of our intention has always been that Xinja customers could own a piece of the action.”

Fancy nabbing yourself a 20 minute home loan? You can check out Tic:toc’s products as well as a range of other popular loans on the market right now using our home loan comparison tables.