4 steps to settle a home loan without leaving your couch

In a world where you can settle most financial matters online, why is there still so much leg work involved in securing a home loan?

When it comes to your mortgage, chances are you’ll spend hours researching, travelling to and from banks, and meeting with people who want to sell you a product that’s right for you… and them.

As technology advances and many of our cumbersome traditional services undergo a digital makeover, people expect the same in their financial services.

“People always want more choice, lower prices and faster turn-around times, and that’s across every product category in the world, including home loans,” explains founder of online mortgage broking company, uno, Vincent Turner. 

Your best home loan deal could be right at your fingertips. Picture: Getty

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Turner argues that online mortgage brokers like uno not only provide quicker, on-demand customer service, but also have the scope to get you a better deal for you by showing you more options.

“If you do see a bank you’re only going to get products from that bank. It can be convenient if you’re already with that bank, but it’s still quite limited. They’re never going to give you the reach of a broker. Having said that, most people don’t know that, on average, brokers send 75% of their business to three banks. If you can’t see the screen that your broker sees, you’re not going to be sure that you’re getting the full range of options,” he explains, adding that uno works with over 20 lenders.

So what’s your alternative?

Online brokers like uno are using technology to give you the tools to review a broader range of loan options that are personalised to your individual situation. And they’re taking the service you would expect from a traditional broker and offering it via phone, email, text and chat – even on weekends and evenings. Here’s a step-by-step guide on how to choose a home loan, without your tush leaving the couch.

Step 1: Reviewing your options

If you’re looking to buy property, Turner recommends sussing out your options and securing financing well before making an offer.

While scrolling property online, why not check out suitable home loans too? Picture: Kate Hunter

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When starting the process online, you’ll be asked to answer questions pertaining to your loan needs and individual situation: Are you looking for an investment property or a new home? How much is the property you want to buy? How much can you afford to borrow? How much have you saved for your deposit? Do you want an interest-only loan, or principal and interest?

uno’s platform will use this information to narrow down thousands of options to a handful tailored to your individual situation and needs. 

Step 2: Finding the one

After Step One, you should have a suite of options catered to your needs. But how do you know which option is the right one for you?

At this point, it’s useful to get some guidance from a Home Loan Adviser via online chat, email, phone call, or even text.

However, without further information about your finances, it’s impossible to know which loans you’ll be eligible for. So, Step Two is providing more detailed information to your adviser, particularly relating to your employment, income, marital status, and dependents.

During this process, Turner says you’ll need to provide details on your finances and be prepared with some documents so that your online broker can verify your information and recommend the best loan for you. Most people should have these ready:

• Three to six months of bank statements
• Valid ID (a driver’s licence will do)
• Your last two pay slips to verify your income

“uno has the lender rules built in, and it knocks out loans that aren’t right for you,” Turner explains. “Based on this shortlist, our advisers can then say ‘here are the options that are suitable for you, but here’s who we recommend and why’.”

Step 3: Applying for your loan

So, just how DIY is the online home loan application process? Does it spell extra grunt work from your end?

Turner explains: “uno has automated a lot of the paperwork involved with home loans, and we work with lenders that offer convenient options such as ZipID, where you have your identity verified without leaving your home.”

Why should anybody decide on your home loan, except you? Picture: Getty

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While not all banks are on board with ZipID, if you do happen to pick one of these institutions, Turner assures an ID check should be your only face-to-face step. Otherwise, you can complete the process from the comfort of your living room, right through to settlement, with as much or little help as you need.

Step 4: Seeing it through

The beauty of technology is that it makes it easier to keep track of when a home loan needs checking on.

“Once it’s all settled, we check it gets set up correctly and then we continue to monitor your loan and make sure you’re being looked after,” Turner says.

“Every three to six months after the first year of the loan, you should consider refinancing so you know what your loan is, what your interest rate is and what your property is worth,” Turner advises. “Then you can use that to work out if you are getting a decent rate or not; and if you aren’t, come to us and say ‘here’s my situation’. We can very quickly say whether you could save a reasonable amount of money.”