And we thought groceries in 10 minutes was fast... Commbank in changing the game for prospective home owners.
👉 Background: Commonwealth Bank has the biggest home loan book of the big four banks, and now they're competing with other banks and fintechs by launching a digital-only home loan product called Unloan.
👉 What happened: Unloan will aim to approve home loans within just 10 minutes of customers applying... but it ain't for everyone. If you're a higher risk applicant, looking for an interest only loan or a fixed-rate mortgage, Unloan isn't for you.
👉 What else: BUT if you're an everyday person with an uncomplicated wage situation and a reasonable deposit, you're on. Why so specific? These are the type of loans that can be approved in minutes, and approval time is very competitive in the home loan space.
💡Good ol' fashioned home loans are the most competitive area of the lending industry. But, home loans offered by the big four banks tend to be pretty similar.
💡The biggest differentiator isn't price... and it ain't an offset account. It's the 'time to yes'. For many prospective buyers, the approval time is a big factor in their choice of lender.
💡Home loan market share has fluctuated in recent years. You've got ANZ admitting some of its loans were taking 32 days, then Macquarie approving loans in three days. Now, CBA has moved to stay ahead of the approval time curve.
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