The online brokerage has launched a new tool that provides users with “greater confidence” around the likelihood of their loan application being approved.
Home loan comparison platform Lendi has announced the launch of a new integrated online rating system that aims to provide users with insight into the likelihood of their mortgage applications being approved.
The new Approval Confidence™ tool integrates directly with the back-end decision engine of some of Australia’s lenders to assess the user’s credit profile and personal information, ultimately providing the user with a rating of either “standard” or “high” possibility of loan approval.
The rating tool requires users to provide income, expenses, asset and liability information and upload relevant documentation, in a process that Lendi states takes an average of 54 minutes, and reportedly does not affect the customer’s credit score.
The tool is currently integrated only with Adelaide Bank and ANZ, but Lendi said the tool could be extended to all 37 lenders on its panel.
Lendi stated that lenders not currently integrated with the system will automatically produce a rating of “standard” for users utilising the tool.
Product options with an approval rating below “standard” will not be presented to customers as they are deemed to be not suitable.
Speaking of the new approval tool, David Hyman, Lendi co-founder and managing director, said the tool could make “on-demand home finance a reality” while addressing “the information asymmetry” that exists between lenders, brokers and borrowers.
“We know people can feel overwhelmed and vulnerable throughout the home loan process, and we are rectifying that by giving borrowers more information and a greater sense of certainty without jeopardising their credit score.
“Typically, borrowers have had to submit a loan application and then wait for weeks before getting feedback from the lender. Customers will now be able to ascertain whether they meet a lender’s requirements, subject to verification, in under an hour,” Mr Hyman said.
ANZ, a major shareholder in the Lendi platform, is one of the lenders involved in the pilot program of the tool.
Mark Hand, ANZ’s group executive, Australia retail and commercial, said the new tool would provide borrowers with “greater confidence when they’re looking for a home loan, which is one of the biggest financial decisions many people make,” he said.
[Related: Neobank launches home loan offerings]
Hannah Dowling is a journalist for The Adviser and Mortgage Business.
Prior to joining Momentum Media, Hannah worked as a content producer for a podcast catering to property investors. She also spent six years working in the real estate sector at a local agency.