Just two months since launching non-bank lender TechLend has already reached $100 million in bridging loan applications, proving its unique solution to allowing people to buy before they sell a property, is tapping into a significant hole in Australia’s mortgage lending market.
Applications have been received from all across the country, with home buyers on Australia’s East Coast demonstrating the strongest demand for its unmatched bridging loan product.
Consequently, the company is seeking to raise further funding to help support the large volume of bridging loan applications being acquired.
In its first two months of operation, TechLend, dubbed the ‘Afterpay for home loans’, has seen unprecedented demand for its bridging loan product, as Aussies look to relocate amid the stress of a hot property market. The non-bank lender offers homebuyers interest-free, paperless, bridging loans with same-day pre-approval, in a revolutionary move that allows homeowners to buy a new home before they sell their old one.
“Lockdowns are seemingly having no effect on the current housing boom as virtual inspections and auctions become widely accepted. We are seeing borrowers capitalise by purchasing new property before selling their existing one and avoid months in temporary living situations and overwhelming mortgages,” TechLend chief executive Aaron Bassin said.
“TechLend takes the pressure off home buyers by offering certainty, speed and transparency throughout the whole process. It’s a solution fit for all homeowners, including those who may not meet the strict lending criteria required by the major banks.”
How it works
- Homeowners looking to buy a new property before selling their existing home complete a 5 minute online application.
- TechLend uses its proprietary technology to offer same day pre-approval, revolutionising the traditionally slow approval process.
- Homeowners are granted a three-month interest free TechLend bridging loan, allowing them to ‘buy now, sell later’, for a small set up fee starting at 1.99%.
Buy before you sell
A lift in demand for TechLend’s bridging loans comes as house prices skyrocket amid a surging market, making downsizers nervous to sell before they find a new home. Property prices nation-wide are up more than 18.4% year-on-year according to the latest data from Corelogic, and the upwards trend is showing no signs of slowing.
In what was a sign that the coronavirus lockdowns in NSW and Victoria were having little impact on Australia’s property market, the Corelogic data found that the nation’s median property price lifted by 1.5% in August alone, with Sydney prices up 1.8% for the month.
Melbourne saw a 1.2% increase in price last month while Brisbane prices grew 2% for the period.
Same day approval
TechLend’s proprietary technology leverages property data and values to deliver same day pre-approval, with a simple set-up cost starting from 1.99% for the first three months.
Property buyers can now utilise TechLend bridging loans of up to $3 million for six months, with no repayments required until maturity or earlier when the property sells.
Earlier this year, TechLend secured $50 million in funding from Silicon Valley venture debt and growth credit fund, Partners for Growth, to turbocharge growth in its home loans business.
The company is the brainchild of former MoneyMe head of strategy, Aaron Bassin and mortgage broker Nick Jacobs, who launched the company after becoming frustrated with the limitations of traditional home loans.
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Source: https://australianfintech.com.au/100-million-reasons-to-use-non-bank-disruptor-techlend/
