Apologies if there's already a thread on this (@Simon Hampel please consolidate it if that's the case), but has anyone done research on Tic:Toc? Seems they are going heavy with an AU ad campaign too: Home Loan Player Tic:Toc Warns Aussies Of Imposters In New Ads Via The Twelfth Window - B&T
Sorry, also meant to share their current INVESTMENT loan rates: FYI their 'unique selling point' is that they offer 'instant' approvals for applications. Not sure what 'Instant' means... surely they need some processing time to assess applicants?
From memory I think this is funded by Adelaide bank. It's one product from one bank. If the shoe fits....Good way to hit your credit file if it doesn't, though, and you won't know until you get a decline. Unless you've got a very vanilla deal, I wouldn't bother. Incidentally, if an instant approval is not the be all and end all for you, any broker could get a rate like that IF the shoe fits, and if it doesn't you'll know about it before you get a declined application.
Thanks Jess, Also after a short online webchat with them I found out the following (to save people time who might be enticed by the rates): 1) Tic Toc will only work with people who have a PPOR loan with them, and a max of 4 investment properties (so, 5 properties total, max), but it sounds like they have to re-finance you PPOR first (but with those cheap rates, that sounds pretty enticing still). But for investors with large portfolios, probably not 2) I'm really concerned with this: by virtue of what they do ('Vanilla' loans as Jess said) for pre-approvals. Or, the lack thereof! They don't do them (meaning, you must submit a full approval up front and if rejected, a note will appear on your credit record about the failed rejection...) That's an alarm bell for any investor or wannabe investor wanting to grow their portfolio in these trying times for investor-loans. A black mark on your credit profile could hurt your future applications with other lenders.
There's a previous thread on it - basically they are very fussy and will reject a lot of securities arbritrarily. (i've seen a few cases where people have tested it and it's knocked back 800k resi securities for 300k loans in prime suburbs etc) etc. If they're relying on fintech to validate a lot of the data- I'll be waiting 12 or so months to see when the cases of fraud/exploitation of the systems comes about.
They are not doing anything that a broker / in branch banker doesn't do when you have initial discussions with them. Except it is automated and perhaps a tad more thorough but until someone is looking at actual income documents its all BS.. I could pre-approve you (ie qualify you) over the phone. The devils in the detail isn't it. It is a common sales tactic used by banks as well. Yes sir / madam you are approved....pause.... Subject to: * The income you have declared matching the documents you are to send me. Common issue here with self employed and interpretation of tax returns and financials, overtime & commissions, YTD figures not matching base salary etc etc. * The security property being acceptable as security * The valuation amount being sufficient for our LVR rules. * Your credit file being clear of defaults etc. * Your living costs declared being at least as high as our minimum benchmarks. * Your other debts being verified and assessed at our benchmark assessment rates. * Our current lending appetite for your loan type.
Robo lending. Personally I would place my faith in a fantastic personal broker rather than a system that could stuff your credit report or X-coll or......
Just be aware that they're quoting principal & interest loans. I couldn't find any mention of interest only loans anywhere. Their variable rate is quite good, but the fixed rates are fairly average. They're also funded by Adelaide Bank, so the assessment policies are likely to be in line with Adelaide Bank. Fairly conservative overall, not the ideal lender for an active investor. The 22 minute approval is a bit of a gimmick. Whilst a preliminary assessment can be done in this time and it can be automated, there's a lot of caveats on this assessment. Verification Of ID will need to be completed at the post office and sent via snail mail, without it you don't get the loan. Some properties will require a full valuation which takes several days, otherwise you don't get the loan. Some payslips are in a Their niche is clearly the vanilla AAA+ owner occupied, 'set and forget' loan. They really are competing with other online lenders and branches on a pricing basis. They're not competing on structure, advice and strategy.
This will change in the future, there are framework already in place to have online ID verification, and credit score system as AI and more advanced system are in places like credit score (the most important number you need in America for loan) and online verification get easier it not if, it is when it will disrupt the mortgage broking industry
I'm already using some of these systems. Right now it still takes some sort of face to face interaction to identify people. There's a number of other things that do take some time in a loan approval. They can probably get an application to the point where they can be extremely certain the loan will proceed, but I suspect in the fine print there's a few conditions on their approvals that are quietly taken care of in the background. Eventually your ID will probably have some sort of biometric data integrated which can be used in conjunction with a camera and allow all this to identify you without any human interaction at all. This is actually quite frightening from a privacy perspective as is the credit scoring proposals that are coming to fruition. It's convenient and has some significant advantages, but it comes at a massive cost.
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