Nano - Digital Home Loans

SaberX on 28/09/2021 - 15:26
Last edited 28/09/2021 - 16:42 by 1 other user

Hi all,

Just wondering if anyone has done the research or better still gone through the refinancing process with the new digital bank on the block: Nano?

I saw a blitz of the advertising in recent days riding the train and walking the CBD, and thereafter social media bombarded me so I had a look.

Keeping in mind I'm only getting 2.49% variable out of Bankwest, and their fixed rates the best I can see is 2 years at 1.89% I was surprised to see Nano is offering 1.99% off the bat. It appears to be a comparison rate as well with the usual 'no fees etc etc' asterix, and no honeymoon rates trap spiel.

Even more it has an offset 'sub account' which I haven't delved into, but if it works and has the same protections and functions as a normal offset without impacting loan and investment/tax purposes then this seems like a great rate (1.99%).

Am I missing anything? I guess existing and new customers may get the same rate, and this could be jacked up significantly in the future, but I'd imagine with such a low rate now they'll still be more competitive thank the big banks?

The only thing I am not sure about is their approval process seems to use 'screen scraping' or some sort of linking into your bank accounts etc. I've never been a fan of the Raiz or whatever platforms that connect to your financial accounts, just out of privacy/security concerns. Does anyone know if this method of verifying expenses and transactions is reasonably secure/safe?

I'm not sure if there's any other considerations i.e. if they go under is our offset $ safe and offsettable against the mortgage owed - otherwise what happens? But keen to hear thoughts. Think 1.99% is very competitive? albeit 75% LVR which I think we may be able to scrape together and make given property's boom in recent year may have given us the bump we need.

Are there any other competitors near enough with an offset?

Related Stores

Nano Digital Home Loans

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  woodg on 28/09/2021 - 16:10

  It's not an ADI. Not really an issue for the loan itself. May be a slight issue for the offset component (i.e. the offset is not protected in the event the company goes under.)

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  Kyle-K on 28/09/2021 - 16:45

  Does anyone know if this method of verifying expenses and transactions is reasonably secure/safe?

  It can be now if they using open banking APIs.

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    SaberX on 28/09/2021 - 17:22

    Is that a more secure approach? How does one verify if they are using this approach?

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      Kyle-K on 28/09/2021 - 18:17

      Is that a more secure approach?

      You can read all about the Consumer Data Right Here. It's something that the banks have been mandated to do which is provide a API level access to your data. It gives you an authorisation control and doesn't rely on sharing your password and data scraping.

      How does one verify if they are using this approach?

      Unfortunately I've only just heard about these guys so I'm still investigating doesn't appear to be anything mentioned in their legals on how the connected account feature works.

      Other than the blurb that points to an article regarding the approved use of scraping.

      However technically if they were using the CDR you would be sent to your bank to authorise the connection and they should have a section on their website that shows that authorise connection.

      But my guess is you're just going to be asked to provide your banking password and login details for your current accounts so they can go scrape.

      Anyway I'm still looking into them I'll report back anything interesting that I find I also mention them in my discord.

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        SaberX on 28/09/2021 - 20:31

        In other words if they are referring to data scraping on there website (nano) - then they wouldn't be using an API level access to your data? As this would not require 'data scraping' per se i presume?

        You did note the blurb - so it seems like this is the case.

        I presume data scraping works by entering your details into the secure bank provided connection, hence nano's comments that they don't 'see or store' your password.

        Which is referenced in the FAQ on privacy:

        "The process we use to do this is proven, safe and secure. We take data security and the protection of sensitive information extremely seriously. We have the following protocols in place:

        One time use only: We never see or store your banking username or password.
        Read-only data: Your transaction history and account details are read-only – it’s impossible for us to transfer or transact with any of your accounts.
        Maximum security: We use 256-bit encryption with all information (the same as big banks).
        Secure storage: All data is securely stored, and we only use it in accordance with our Privacy Statement & Policy.
        

        "

        Would love to hear your thoughts after your research as it's abit beyond me. The rate and process seems great - i presume the fees and charges result in next to nothing - hence a similar comparison rate to the reference rate. So the main charges would be exit fees for discharging from Bankwest. Unfortunately no refinancing bonus to cover this like other banks provide.. but the low rate makes up for it.

        A bit of a millennial here - care to explain how to access your said discord?

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  Gros21 on 05/12/2021 - 21:36

  Any more info on nano banking.

  I just want a no BS bank for a rental I am set and forget.