Canada: Fully digital mortgage application launched

Alterna Bank has launched Canada’s first end-to-end digital mortgage application, claiming that its new platform will offer a user-friendly interface and quick mortgage pre-approvals that will be accessible on all digital devices.

The platform will use a range of data sources when conducting credit checks, including basic credit scores. Once pre-approved, customers will receive access to a customer portal that will utilise Salesforce’s workflow capabilities to helps them complete the application, which includes providing remote income verification and document exchange.

Alterna Bank hopes that its new tool will simplify the loan application process and ensure consumers are not held up waiting for bank approval. Rob Paterson, President & CEO of Alterna Bank explained, "In the time it takes to get a traditional mortgage, you could lose out on three or four homes. Buyers are put through the wringer, forced to make multiple appointments, going from branch to branch to haggle for the best rate. It's nonsensical. Buyers should be spending their time finding the perfect home, not running around for the perfect mortgage. Our goal is to dramatically simplify what we believe to be an unnecessarily convoluted process by leveraging technology to save our customers valuable time and energy.

Despite being wholly digital, applicants will still have access to mortgage specialists via email or phone if they have any questions.

Currently, 7% of consumers say they completed their mortgage application through a digital channel, such as online or via mobile banking, although 12% would prefer to complete their application through a digital channel.

According to RFi Group data, the move to fully digital applications will appeal to a sizable proportion of the market. Currently, 7% of consumers say they completed their mortgage application through a digital channel, such as online or via mobile banking, although 12% would prefer to complete their application through a digital channel. This shows there is a market for consumers who would like to apply in this way, but are currently unable to do so, with Alterna Bank potentially in a position to capture this market.

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