A company seeks to make the home loan process more flexible
Mortgage brokerage firm Nook seeks to make it easier for Filipino consumers to search for real estate assets to buy or rent, compare loans offered by various banks, and apply for loans using an online platform pioneer.
“Applying for a home loan here in the Philippines can be a tedious and intimidating process. Before even getting started, potential clients are already overwhelmed by the long list of requirements or the time they have to set aside to complete all stages of the request. We aim to solve this problem with Nook. We are providing an end-to-end platform for users, from property search to bank approvals, allowing more Filipinos to easily access the financial options available to them, ”said Nook CEO Chris Elder, at the company’s media launch on Wednesday.
Nook allows potential borrowers to find the right home loan and help them through the application process, saving them the hassle of going to different banks to compare what each has to offer. Thanks to Nook, a potential borrower will have an overview of the amount of monthly repayments to be made, fees and other requirements of each bank and will even be pre-qualified for a home loan in just a few minutes.
The company has partnered with the country’s leading banking institutions including Asia United Bank, BDO, BPI Family Savings Bank, Bank of Commerce, CTBC Bank, Chinabank, Rizal Commercial Banking Corp. and Security Bank, to provide homebuyers with a wide range of financing options to meet their needs. Five more banks are expected to partner with Nook soon.
“They (the banks) effectively outsource the research and qualification of loan applications,” he said.
Through its website www.nook.com.ph, Nook seeks to help clients every step of their home loan process for free. He will earn a commission from the partner bank for each successful referral. A mobile app will also be launched in the future.
“What Nook offers is direct access to partner banking for your home loans with the easiest application process you can get,” Elder added. “It’s time for the Philippines to recognize how technology can transform the demand-to-close mortgage lending process. “
The length of loan approval and disbursement will depend on the asset to be purchased. For condominium developments where developers pre-sell units and are approved by the lending bank, loan approval can take four to seven days. For transactions involving secondary market purchases, approval may take longer.
Elder said he was optimistic about Nook’s business in the Philippines, citing the dearth of mortgage brokerage solutions in that part of the world, coupled with the growing purchasing power of Filipinos and the thousands of new residential options being built each year.
Nook seeks to fill the void by connecting consumers with banks in terms of the loan application process, especially young people who tend to be intimidated into starting their home loan search for a variety of reasons, including not knowing if they are qualified to borrow from any of the local banks for a home loan.
The company also believes that now is the time for the Philippines to embrace the industry trend and practices in countries like Australia and the United States where more than 60% and 68% of borrowers, respectively, spend by mortgage brokers instead of direct bank demands for a home loan.
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