It’s no secret that the Internet has changed our lives. We can go shopping, re-connect with old friends from high school, do our banking and even earn a university degree.
The ability to apply for a mortgage online has been around for a short while, with some of the smaller players in the market offering the service. Companies such as ING Direct, which doesn’t have a branch network and instead relies on its website and direct channels to sell it products, has had an online mortgage product for quite a few years.
But with news National Australia Bank has launched home loans through its online business UBank, the arena looks set to explode as its big bank rivals pursue similar low-cost initiatives.
One of the biggest benefits of an online mortgage is the speed at which everything is done. Customers simply fill out the easy-to-follow online application form and submit it via a secure server. The information is entered directly to the database and within minutes a conditional approval may be granted.
The computer-based decision is calculated using the information the customer enters, but will be subject to verification documents, valuations and other legal checks to ensure the information provided is valid.
Applying for an online mortgage also means you’re bypassing the need to take time off work to visit the bank’s branch, fill in countless application forms and wait days for the bank to respond.
Question: Would you apply for a mortgage online? What makes it more attractive than going directly to a bank?