Brisbane-based fintech startup, WLTH, has entered the home loan market, offering Australians a digital-only application process and low-rate launch offer.
After years of development and testing, the “digital non-bank neo-platform” has launched with the intention of simplifying the traditionally complex process of applying for home loans. Its five-step online Lending Loop platform could potentially see borrowers apply for a home loan in as little as 15 minutes, without having to meet with a banker or a mortgage broker.
As a launch offer, WLTH is offering variable home loan rates from 2.09 per cent (comparison rate 2.15 per cent) for owner occupiers paying principal and interest. Investment loans, including principal and interest, interest only, and self-managed super fund options, are also available. Before you consider applying for a home loan online or in person, it’s important to compare the available options and consider whether they suit you financial circumstances.
Home loans are the first of a range of financial products that WLTH plans to introduce over the course of 2021 and beyond. Other future projects are expected to include simplified financial account and banking apps, smarter digital payment options, and a loyalty and rewards program, which is set to reward borrowers with loyalty points for paying their home loans on time.
WLTH’s partners include finance tracker Moneymgmt (which used the WLTH name itself until changing its name in August 2020) and property calculator Properlytics.
WLTH is joining the ranks of Australia’s neobanks, which also includes the likes of 86 400, Volt Bank, Up and Judo Bank. These financial institutions are in a position to challenge the established banks, both in lending and deposits. For example, Judo Bank offers one of the most competitive term deposit rates on the market, and has been steadily increasing its deposits. And at the time of writing, 86 400’s Real Time Ratings™ are ranking highly on the RateCity Home Loans Leaderboard for new lenders.
However, not every neobank or fintech has been a success story. At the end of 2020, we saw neobank Xinja bow out of the market, following financial pressure from the pandemic and recession.