Challenger bank 86 400 has launched its first home loan product, nine weeks since the public launch of the new bank.
The neobank, which initially launched with savings and transactions products, has today launched a digital home loan offering through brokers.
The new entrant to the home loans market is available for purchasers, refinancers, owner occupiers and investors as a fully featured loan, with fixed and variable rate options, both with redraw. The variable rate loan also has the ability to link to multiple offset accounts (both 86 400 Pay and Save accounts). Rates start from 2.88% p.a.
The bank spent eighteen months working through the key pain points for both brokers and customers before developing smart technology solutions which are unmatched by any other bank in the broker market.
The result is an approval process which 86 400 says is up to six times quicker than the Big Four, with just a single piece of paperwork needed for a purchase – the contract of sale.
The process has cut time and reduced paperwork by using electronic statement capture, which pre-populates the home loan application, simplified identity verification on your mobile and e-signatures.
The company has also plugged into a series of providers to enable the digital process including: Simpology (broker lodgement), MaxID (identity verification), Mogoplus (electronic capture of income and expenses and automatic mapping into credit decisioning rules), Loanworks (origination), Equifax (electronic ID and bureau), CoreLogic (valuations) and FMS (issue of loan documents and management of settlement).
Melissa Christy, Home Loan Lead, 86 400 said, “Our smart technology works on the brokers behalf, to make their life simpler every step of the way. We know mortgage brokers drive competition and choice for consumers, which is why we have focused on erasing their pain points so they can deliver the best value to customers. This is the first offering in recent years that offers real, tangible benefits to both brokers and homebuyers.”
In May this year, 86 400 announced its partnership with Vow Financial and has since signed a partnership deal with Specialist Finance Group to strengthen its national distribution of home loans, with a select network of 2,800 brokers. The 86 400 home loans offering will progressively roll out to brokers from today onwards.