- Startup was founded due to frustrations associated with traditional home loans
- Bridging loans are expected to grow due to the increase in downsizers
TechLend, a new non-bank lender that offers borrowers same-day pre-approval, has launched.
Aaron Bassin and Nick Jacobs conceived the startup due to frustrations associated with the limitations of traditional home loans. In a previous life, Mr Bassin was the head of strategy of ASX-listed MoneryMe and led the company to IPO in Australia.
“We are tapping into a part of the market that the traditional banks aren’t interested in leveraging, due to the short loan period and paperwork involved,” Mr Bassin said.
“By providing affordable bridging loans to Australians, we are disrupting traditional lending to bring borrowers better outcomes, and take the stress out of buying a new property.”
Aaron Bassin, TechLend
Using TechLend, property buyers can bridge loans of up to $3 million for up to six months without any repayments until maturity or earlier when the property sells. The lender also offers commercial property loans for up to 24 months.
The chief executive and founder of Australian digital brokerage Stake, Matt Leibowitz, provided seed investment for the startup.
According to a recent survey by consultancy Digital Finance Technology, bridging loans are set to significantly increase their portion of the property financing market during the next five years with more than 1.6 million households planning to downsize during that time frame.
Mr Jacobs is confident the company will disrupt the traditional lending space.
“As a mortgage broker, I understand the frustration that comes with traditional lending solutions and the obstacles that many of my clients face when it comes to sourcing funding,” Mr Jacobs said.
“TechLend provided a pathway to the great Australian dream with same day turnaround and greater accessibility in a market that is in desperate need of innovation and disruption.”
Nick Jacobs, TechLend