The team at Tictoc were great to deal with, BUT...
The team were responsive via email and chat to assist in filling out home loan paperwork.
Costs were as quoted - no surprises. No issues, with the service or the team. Great product. Update Nov 2020- Their Variable rate loan doesn't follow RBA Rate cuts. Not really variable Rate..! TicToc's repsonse is that only new customers get the RBA rate. Beware if your a new customer as Tictoc / Adelaide/Bendigo bank havent been passing on rate cuts - which is very disappointing that due they arent willing to help their customers kick start the economy during the pandemic..
- Verified customer
Great rates but average application process
Customer service was great but felt let down by their application/approval process. Had to manually submit over 10 different documents despite their claims of "saving time" and "automated approvals".
The point that frustrated us the most was being asked repeatedly to submit my wife's credit card statement when she was locked out of her internet banking and neither could we request a password reset as the bank's offshore team in Manila was closed due to COVID restrictions.
You do have to wonder why we had to answer approximately 10 different queries when our LVR was close to 30% with a combined household income of $200k+.
Good interest rates but they are not upfront with their terms and conditions
I would have loved to have gone with TICTOC however I have 2 workplaces, the majority of my work is as an employee under PAYG but part of my work is as a partner in a business and they classify this as "self employed" even though I get the majority of my pay as "PAYG". Regulations which are out of their control state that you must be self employed for at least 2 years and provide 2 years worth of financials. Unfortunately this information was not given upon application and incurred a credit check on my credit rating. I would suggest an improvem...ent for TICTOC that this information regarding those who are an employee and an employer that they make it clearer re the 2 years financials requirement. TICTOC offer a variable 2.55% rate, I ended up refinancing with my bank (ANZ) on a 1 year fixed rate at 2.39% which also has no ongoing fees and an offset account, was given a special offer by the bank. Glad I went with ANZ at this stage as more secure than smaller lenders who are only partly funded by banks as Bendigo bank is not their only funder
Only useful if you are perfectly standard
Our loan is mildly not standard so they rejected it. We earn a good salary, have good savings and perfect credit. What a complete waste of time applying.
You also have to give all your same information every time you apply which is stupid.
Overall its OK. Slow post-settlement customer service. Banking Application security is below average
I recently refinanced my H.L of around 600K+ to TicToc. The process was not that difficult. Had to provide lot of documentation which I understand was happy with as well.
01-Nov was set as the settlement date and the settlement got completed. A Loan & offset back accounts were created with Adelaide Bank. So far, all OK. But I found a few process/lack of communication from their team
Note: I edited the review and removed #1, #2 and #3 as I was able to get hold of a customer service rep who knows what he/she is doing and it has been resolved. ...#4 and #5 issues still exists. 4) Another thing I am worried about is the security of their banking application. The moment I got the UserId/Password, I logged in and started checking their application. Surprise...Surprise... they have no 2Factor authentication (2FA). If you add a new payee or transfer money, it transaction goes straight, no 2nd layer of verification. Because of any reason, if your credential got compromised, you are in hot water. 2FA is not foolproof but its a must for a financial application, esp something like bank. Even some retail sites validates you with 2FA. 5) Again back to support team asking them if 2FA is available and to activate it for my account. Request was raised on 07-Nov 7:54 AM and still no reply (though the auto reply said I will get an update in 48 hours). The only option i can see is set daily transfer to the lowest (If you increase the limit, it does send a 2FA code which is a great thing).
Reject first, ask questions later: Are Tic Toc’s great rates and simplicity too good to be true?
TLDR as review is too long: Customer with <40% LVR that can meet industry standard mortgage payments denied home loan because bank account had “too many transactions”. I think Tic Toc’s great rates and simplicity rely on a reject first, ask questions later approach. It’s now been nearly 3 weeks since I submitted my application and I still have no confirmation.
First off, the customer service at Tic Toc is fantastic. They are quick to answer the phone and are available to contact even on the weekend. This is a serious competitive advantage they...have over other brokers. Tic Toc also has basically industry standard ‘hard’ serviceability assessments. These include 20% haircuts to rental and bonus income and an assessment rate of 2.5% above the rate you’ll be paying. Tic Toc also consider the deductibility of interest in their investment property loan, but I’m not sure if they consider negative gearing benefits too. However, Tic Toc’s implementation of their ‘soft’ serviceability requirements is sub-par. As a start up based on the concept of a 21 minute home loan approval, I think Tic Toc have decided to go along the path of reject first, ask questions later. This would allow them to process more home loans quickly. However, if your home loan application needs too much time to analyse, then it may be rejected despite your ability to meet mortgage payments under the industry standard serviceability assessments. For example, I discovered (after about 40 minutes of conversations) that one of the reasons my home loan was denied was not because I couldn’t make mortgage payments, but because I had “too many transactions” in my main bank account. Rather than emailing or calling me to ask about what these transactions were, Tic Toc just denied my application on the generic grounds that I didn’t meet their serviceability criteria. I suspect the real reason it was rejected was because they were unwilling to invest the time required to go through my application with me.
Unfortunately rate cuts not being passed in full, sorry I have to downgrade my rating.
Strange that robot mentioned some human will get in touch and even after taking all internet bank password to link and then no one bothers to call to verify. When i did online chat, person mentioned Credit assessor called me this morning but can not tell who & when to what number, she only said - note left in the application - someone called me, even when there were no call.
Update: So I got the call afterall and clearly Robots unable to verify multiple account, will update once receive human review outcome, clearly online automated decisions ...are not designed to process all available info. Update June 2019: I up 1 star for TicToc more, after waiting for RBA rate cut to be passed (0.2 is not bad considering the market rate), I shopped around lowest 4 offers lately : ReduceHomeLoan (3.24% very difficult need lot of followup), Mortgagehouse (3.29% very high entry & exit cost), TicToc 3.27% & Athena 3.34% (comparison gets lower 0.01% each year). My Current: Loans.com 3.52% (dropped from 3.72%) My verdict 1. TicToc, 2. Athena - for excelllent customer service, Athena didnt have Off-set but they fullfill my critical criteria like one rate for everyone + Reward for customer loyalty like rate drop every year promised - In the end, I decided to stick to TicToc refinance as they had off-set facility & slightly lower rate than Athena. Lets see how everything settles, fingers crossed. Update Oct 2019: - Rate cuts not being passed in full for last couple of rate drop, TicToc kept 5 & 10 points to their margin
Questions & Answers
I have 2 investment properties in one of the fasted growing Suburbs in Australia, that I wish to refinance.
Aintree 3336 VIC
This area used to be Rockbank 3335, and the local government decided to call it by a new name - Aintree 3336 recently.
Now you lend for 3335 and NOT for 3336 (which essentially is the same area)
Any chance you can ask the relevant people to look into this please.
Hi SA-PR, thanks for your excellent question.
Since 3336 is a newer postcode, I have asked our funder for clarification as to whether 3336 is intentionally excluded from our list of serviceable areas, or if it has been mistakenly excluded. We can't lend to all areas within Australia as some fall outside of our risk appetite. Typically we can only lend to capital cities and major regional centres.
When I receive an update from our funder I will update you ASAP. For the time being, we are unfortunately not in a position to consider this postcode.
I hope this helps answer your question. Thanks ~ Bailey
Hi Tic Toc
I’m an existing customer and noticed that you are offering an interest rate of 2.33% for variable with offset account, however my existing loan is almost .50% higher. Any reason why you don’t look after your existing customers with same rate?
Given that its a no frills service where I have never needed to contact you and you have never contacted me since the start of my loan, I’m not sure why I should be slugged with a considerable % difference, after all I refinanced to you for this very reason where my previous lender felt that I should be treated less favourably than potential borrowers.
I dont think its good business to treat some customers more favourably than others as someone will always feel that they are being taken advantage of by having to pay more interest than others with no additional benefits for doing so.
Hi Vscarf10, thanks for your question.
Think of it like this – when you get a Tic:Toc loan, we’ve locked in a ‘price’ with our funder (Bendigo and Adelaide Bank) at a point in time, which is reflected in your interest rate.
When we have a new variable rate offer for new customers, it means we’ve been able to lock in a lower price with our funder. It doesn’t change the price we secured for your loan. And not all offers are linked to cash rate movements.
So, having a lower rate for new customers doesn’t mean we’re making more money off our loyal customers to pay for the discount – because we don’t believe in that. It means our funder has been able to give us a better price at that specific time.
At some point, our funder may actually increase the price they’ve agreed with us, which means the rates offered to new customers will go up. And some existing customers will be better off.
When there’s an RBA cash rate cut and our funder’s costs ease, they may be able to pass on the cut which means all our customers will receive the same discount off their rate – new and existing.
The good news is, all of our rates are seriously good because of our tech-driven proposition. And even if your rates are a fraction higher than the new headline rate, you will still be saving thousands compared to the average loan.
I hope this helps. Please let me know if you have any other questions. ~ Bailey
I’m only interested in refinancing if I have 20% equity or more. I worked out that I roughly have 22% equity in our property, but this is based on recent sales in my area. In the event that your valuation states I don’t have over 20% equity, and I don’t go ahead with the refinance is there any fees or charges for this process? (E.g a fee for the valuation?)
Also do you deal with the whole refinance process or do I also need to speak with my current lender?
Hi Matt, thanks for your question.
We don't charge any fees for applying. You can withdraw your application before it settles and you won't be charged a cent by us.
During settlement, you may be subject to other, third-party costs (like government stamp duty, or our digital conveyancer's fee). You can find a more detailed breakdown here: https://tictoc.com.au/faqs/what-are-the-fees-associated-with-a-tictoc-home-loan
We also deal with the whole refinance process. To discharge from your current home loan, we'll provide you with a discharge form which we submit on your behalf. If you're in a fixed-term contract with your current lender, it may be a good idea to speak with them about any break costs you may be charged by them.
For more information about how we value properties, see here: https://tictoc.com.au/faqs/how-does-tictoc-work-out-the-value-of-my-property
I hope this helps answer your questions. Please let me know if there is anything else I can assist with. :) ~ Bailey
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