Your Money

The rise of digital home loans: Transforming Australia’s mortgage landscape

- February 8, 2024 2 MIN READ
House key in door

In today’s ever-evolving financial landscape, the journey to homeownership is undergoing a significant transformation, particularly among Australians aged 25-49.

A recent study conducted by YouGov has shed light on a remarkable trend: the surging popularity of digital home loans. Traditionally, Australians have relied heavily on mortgage brokers or direct bank applications for their home loans. However, an increasing number are now turning to digital channels for their convenience, simplicity, and efficiency.

49% of Aussies are considering a digital home loan

According to the study, nearly half – 49 per cent – of respondents are considering digital home loans for their future mortgage applications. This shift marks a departure from the conventional reliance on mortgage brokers, which currently stands at 70 per cent among Australians.

This trend hints at a potential disruption in Australia’s home loan origination market, signalling a preference for streamlined online processes over traditional methods.

Why we’re going online

1. It’s easy

Several factors are driving this transition. Firstly, the ease of online processes and the absence of application fees are big motivators for borrowers. Unlike traditional avenues that often involve loads of paperwork and time-consuming negotiations, digital home loans offer a seamless and efficient experience. Applicants can complete the entire process from application to approval without the need for face-to-face meetings or complex negotiations – which makes it a very attractive option when you’re busy, busy, busy.

2. It’s quick

Even better is the speed of the online process. With digital home loans, borrowers can expect faster turnaround times compared to traditional methods, enabling them to secure their financing faster. This speedy process is particularly appealing at the moment when the housing market is so hot. Being able to quickly secure your financing can make all the difference buying the property you want.

3. It can save you money

Digital home loans have also dispensed with traditional application fees. Unlike mortgage brokers who may charge fees for their services, digital lenders often waive these fees, reducing the upfront costs for borrowers. This cost-saving feature makes homeownership even more accessible.

4. We can have more control

For many of us, there is a lot of appeal in being able to manage a loan independently without needing to involve a broker or direct bank visit. Digital home loans empower individuals to take control of their mortgage journey, allowing them to research, compare, and apply for loans on their terms. This choose-your-own-adventure approach matches the preferences of today’s tech-savvy consumers who value convenience and flexibility in their financial dealings.

The numbers tell a story

And it seems that digital home loans are here to stay. 75 per cent of respondents from the YouGov study who have used digital loan providers before would use them again in the future. However, traditional avenues of home loan providers still hold appeal for many, with 60 per cent saying that using a mortgage broker provides added peace-of-mind.

Want to find out more about digital home loan providers?

Up Home is a great place to start. Up Home is designed to guide borrowers along their journey to home ownership and beyond. From saving, to buying and applying. Up Home have kept every step simple – and something you can do from the comfort of your couch (no economics degree required).

This article is bought to you in partnership with Up Home.


Get Kochie’s weekly newsletter delivered straight to your inbox! Follow Your Money & Your Life on FacebookTwitter and Instagram.

Read this next:

What’s wrong with Australian mortgages?