Tuesday, January 12th, 2021
COVID-19 has changed a lot of things, including the way banks and financial institutions interact with their customers.
The impact on the mortgage industry has seen the innovation of online mortgage applications, supported by electronic documentation and the rise of video calls replacing the once-traditional face-to-face meetings.
To find out more about what other ways the mortgage broking industry has evolved as a result of the global pandemic, read on…
The transition to online
Even as restrictions are easing across the country, social distancing is not going to go out of style in the near future, so it makes sense that the way we do daily business has undertaken an evolution.
Banks and lending organisations are just some of the many businesses that have turned to the online world to ensure business continues in what is now known as the ‘new normal’.
On a positive note, the need to find different ways to do business has seen a streamlining in the way applications are processed and banks and lenders are now calling on the Australian Government to make these innovations permanent.
If the pleas from the industry are approved, 2021 could see banks and lenders making permanent changes to the way home loan applications are processed.
Some of these requested changes include:
• Allowing deeds to be created and signed online.
• Accepting electronic signatures
• Enabling the witnessing of documents to occur across video conferencing, rather than in-person
• Online processing of mortgages
If the permanent move to online does go ahead, mortgage industry experts anticipate a significant fast-tracking of the home loan application process – changes that will make it less stressful for home-owners to gain faster access to mortgage funds, even if they are in a remote or regional location.
Mortgage approval process
With many lenders using the economic impact of COVID-19 to tighten up their previous lending processes, though, applicants should be aware that stringent checks around proving a consistent and sustainable income are likely to become even more rigorous, with lenders asking for more supporting documentation around earnings versus expenditure.
Exploring your options
To help navigate your way through what can be a confusing application processes, considering a mortgage broker to help you find a competitive home loan that will suit your financial circumstances, has never been more important.
Although workers in some industries – including aviation, tourism and hospitality – are now seen by many lenders as a bigger risk, mortgage brokers can help you access a range of options you might not realise are available.
Because professional brokers have a wide variety of lenders on their panel, you are far more likely to find your ideal match and won’t be limited to doing business with the big banks.
To find out more about your home loan lending options in a post-COVID world, talk to our mortgage broking professionals at Loans Actually today.