A fintech has announced a new home loan product for self-employed borrowers who do not fit the conventional finance mould.
The new CO:Lab home loans is a collaboration between Tic:Toc and La Trobe Financial, which can help self-employed Australian’s and business owners excluded by traditional eligibility requirements, as well as customers looking to refinance to invest money into their business.
Tic:Toc launched its instant home loan in July 2017 in partnership with Bendigo and Adelaide Bank and is now working with another lend to extend its reach to business owners.
Announcing the launch of CO: Lab, Tic:Toc founder and CEO, Anthony Baum, said while major lenders continue to tighten lending to small businesses, Tic:Toc has specifically broadened its home loan suite to offer digital home loans to many more Australians, including a broader range of self-employed professionals and small business owners.
“More than 17% of Australians work for themselves, so it’s important home loans keep pace with the shifting workforce to support self-employed customers,” he said.
“Australia’s self-employed and small business owners have traditionally endured a notoriously difficult home loan process, with an often impractical burden to provide large amounts of documentation.
“Our partnership with La Trobe Financial, one of Australia’s longest operating and leading non-bank credit specialists, has created a broader set of loan options via Tic:Toc’s streamlined home loan assessment and approval technology. This means business owners and self-employed customers now have more loan options, with less hassle and at a lower cost.
“For example, a business owner can use the equity in their home to invest in their business at home loan prices. This could save them up to around 6% per year on standard business loans from the major banks, and they can apply and be approved the same-day via our award-winning online platform.”
La Trobe Financial president and CEO, Greg O’Neill said, “As a key shareholder in Tic:Toc, we’re excited to partner with Tic:Toc in developing and launching digital CO:Lab home loans and bring this unique digital approach to market for Australia’s business owners needing finance at such a very important time in the credit cycle.
“As one of Australia’s longest operating and leading non-bank credit specialists, we want to support innovation in our industry. We are very proud to back Tic:Toc as they embrace smarter and more customer centric ways to assess and secure home loan and other finance for a broader range of clients moving forward.”