businessOwned by: Privately held with venture capital partners
monetization_onFunded by: Bendigo and Adelaide Bank and La Trobe Financial
securityLMI Provider: Genworth
account_balanceLender type: Online non-bank lender
Tic:Toc is a 100% online only non-bank lender that’s offering fast approvals with minimal fees and competitive interest rates.
Generally, online lenders work best with simple loan applications secured by standard properties in capital cities and major regional centres.
Anything slightly outside of standard lending criteria the computer will refer you to their credit assessor or may even reject your application without a providing a specific reason.
Tic:Toc has a partnership with La Trobe Financial which allows them to also offer La Trobe loans to customers who don’t meet their policy, albiet at a higher interest rate. These loans are branded ‘CO:Lab’.
How do Tic:Toc’s home loans compare?
They’re great at
- Competitive interest rates if you have a large deposit
- Automated Valuation Model (AVM) used for a quick decison
- Fast loan decision powered by clever software
- No ongoing or upfront fees except for government fees
- Purchasing or refinancing up to 90% of the property value
But they’ve got some drawbacks…
- Borrowers require a minimum deposit/ equity of 10% plus purchasing costs
- They don’t do vacant land or off the plan loans
- They don’t do construction loans
- The property/security has to be in a capital city or a major regional centre
- No temporary resident home loans and Australian expat home loans
- They don’t have branches
- If there’s anything unusual your loan will be declined or they will offer you a higher interest rate
- They don’t accept more than two applicants on an application
What types of home loan do they have?
Tic:Toc’s Live-in variable home loan is a basic variable rate loan with competitive interest rates and no application, assessment or valuation fees. You can also add an offset account for $10 per month.
Their Live-in fixed home loan can be fixed from a year up to 5 years after which it rolls to a variable principal and interest loan. It features free additional repayments up to $20,000 and free unlimited redraw facilities. An offset account is available with this product for $10 per month.
They also have an Investment variable and Investment fixed home loan with an interest-only term available with all their loan products.
Their CO:Labs loans offered by La Trobe Financial are available for borrowers who have a complex situation, bad credit history or cannot prove their income. These loans have higher interest rates and we recommend that you speak to a mortgage broker as you may be able to get a better deal.
You can use our ‘interest only vs principal and interest calculator’ if you’re debating whether it’s worth wearing a bigger interest expense to free up cash flow to invest.
Tips for applying with Tic:Toc
- Tic:Toc home loans are suitable for borrowers with a clean credit file and with higher deposits/equity looking to refinance their home loans for up to 80% of the property value.
- Mostly only suitable for PAYG borrowers with readily available payslips and self-employed borrowers with at least two years’ tax returns and consistent income.
- Anything not straight forward and the computer may reject your application without a specific explanation. At which point, a credit assessor may look into your application and supporting documents which can result in the same turn around time as a traditional lender.
- You should constantly monitor your interest rates if you have a home loan with them. Some online lenders in the past have played games with the interest rates for their existing customers.
Compare Tic:Toc home loans with other lenders
Not sure which lender is right for you?
Our mortgage brokers at Home Loan Experts can help!
Give us a call on 1300 889 743 or complete our free assessment form to discuss which other lenders may be suitable for your situation.