New mortgage lender launches low-rate home loan
OneTwo Home Loans, a new lender backed by Lendi Group and 1835i, has hit the market with a mortgage that offers customers discounts on their interest rate when they pay it off.
After receiving venture capital backing from ANZ Bank’s innovation partner, 1835i, and partnering with Lendi Group, the new digital lender, OneTwo Home Loans (OneTwo), has officially launched in the market.
The new company, which was incubated and launched from 1835i Creation Labs in 2020, was created to help borrowers pay off their loan sooner, while saving money along the way.
Its first home loan offering aims to disrupt the “loyalty tax” model and help borrowers pay off their home loan faster, by automatically lowering the borrower’s interest rates over time. he repays his home loan (until he has repaid 25% of the original loan amount).
For every 5% paid, OneTwo will reduce the rate by 0.03%, up to a maximum of 0.15%. Its variable starting rate is 1.89% per annum (comparative rate of 1.79% per annum).
The lender has also pledged to match any additional loan payments made by borrowers during the first six months, up to $2,500 in total.
It has custom built its own cloud-based lending platform and aims to help provide greater transparency to customers and simplify the home loan process by providing a video-based customer service experience.
The first loan offer, available through the Lendi and Aussie panel as well as directly, is currently targeting homeowners in metropolitan or inland Victoria, NSW and South Australia looking for variable rate loans with repayment of principal and interest (up to $2 million). Borrowers must have a loan-to-value ratio of 80% or less.
OneTwo said it is currently developing loans for other customer segments, including investor loans, and aims to make a withdrawal facility available soon.
Speaking after the launch, OneTwo Chief Executive Derek Sheerin (formerly ANZi’s Corporate Director, now known as 1835i) commented: “Australians love property, but the work of buying, owning, selling and financing is often tedious and just too difficult. Our mission is to create new financial solutions that make it easy for people to achieve their dreams.
“We are essentially a technology company here to launch first-to-market financial products to improve the lives of our customers – first of all, we are reinventing Australian mortgage lending.
“By creating our own platform, we were able to fundamentally challenge the traditional processes people go through to get a home loan.
“We’re not just creating a direct digital experience, we’re trying to improve the way people learn and discover what’s right for them. Speed, at the expense of understanding the customer, is never a good thing – we work at the pace our customers choose, which works for them.
“We’ve also radically reduced the traditional cost of service for businesses, with the savings passed on to our customers through great pricing and benefits.”
He concluded that by offering automatic rate discounts, a borrower’s loyalty would be rewarded.
“We want to help customers get the loan sooner, while providing a simple, fun, and fast application experience where we do the heavy lifting,” Sheerin concluded.
“Simply put, we believe home ownership is special and the journey to get there should be enjoyable.”
Speaking about the partnership, David Hyman, CEO of Lendi Group, said he was “delighted” to partner with OneTwo, adding, “As the leading online mortgage lending platform, we believe customers deserve the best products, a frictionless experience and should expect ease and speed when working with their lender, and ultimately be rewarded for their loyalty.
“We believe our customers will benefit from having a digital lender like OneTwo on the Lendi and Aussie panel and we are excited that our customers can have a true end-to-end digital experience from Lendi to OneTwo.”
Ron Spector, Managing Director of 1835i (formerly ANZi), added: “OneTwo was one of the first companies incubated and launched from the 1835i Creation Lab. They have developed and launched a unique customer experience and a radically new digital lending platform that will transform the mortgage experience.
[Related: ‘Loyalty tax’ costs borrowers $9bn, finds neo-lender]
Annie Kane is the editor of The Adviser and Mortgage Business.
As well as writing about the Australian brokerage industry, the mortgage market, financial regulation, fintech and the wider lending landscape, Annie is also the host of the Elite Broker and In Focus podcasts and The Adviser webcasts. Live.