Wiseday, a Canadian firm aiming to deliver the country’s first instant mortgage pre-approval process, has bagged $5m in a seed funding round.
Wiseday said that for decades, securing a pre-approval from an established bank or traditional lender has required piles of paperwork, numerous phone calls, and a wait time of up to seven days.
However, Wiseday enables homebuyers to receive a shoppable pre-approved mortgage letter — and begin their home search — within five minutes.
As part of the offering, the customer is asked a brief series of qualified questions, with identity and income instantly and securely verified. From here, credit health is automatically assessed, and a proprietary algorithm determines how much mortgage the customer qualifies for.
Since launching, Wiseday’s improved digital mortgage process has already driven a 45 per cent month-over-month growth rate.
Wiseday will scale its technology team in the coming months to further innovate the consumer experience and enhance its proprietary internal and B2B tools. The vision of the company is to digitize the entire life cycle of the homeownership process in Canada – beginning with its focus on instant pre-approval mortgages.
Wiseday CEO and co-founder Eric Dahan said, “There’s so much talk of innovation in the mortgage space, but shockingly little has been done to improve the customer experience. Most people want a quick pre-approval so they can start exploring their options. But in Canada, the process is backwards. Homebuyers have to jump through so many hoops before they can even begin looking. We’re flipping the entire process on its head by eliminating the waiting.
“Our team built the technology that breaks down a very frustrating barrier that has existed far too long in the home buying process. The launch of our ‘on-demand’ mortgage pre-approvals gives the power back to home buyers; they can immediately learn what they qualify for and start looking for a home right away.”
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