What’s the first thing that comes to your mind when you think of a mortgage application? Piles of paperwork? Death by documentation? What if you could get approved for a home loan in a matter of hours without having to provide any physical documents? Yes, it is possible.
As of today, 86 400 has become the first digital bank in Australia to offer home loans through brokers. In simple terms, this is what it means –
If you apply for a home loan at 86 400, you’ll have to enter your details into an online portal after which the bank will electronically gather all the required information from your financial institutions and within 24 hours (or less) you should know if you’ve been approved.
The only paper you’ll need to submit is the contract of sale because state governments still require those to be paper-based.
While 86 400 operates solely through its app, for home loans, you’ll have to engage a mortgage broker. Considering a home loan is one of the biggest financial investments you make in your life and nearly 60 percent of mortgages in Australia go through brokers, having a face-to-face element for the entire process can be a big advantage for the otherwise digital bank.
At this time, the Sydney-based neo bank is offering an owner-occupier variable rate of 3.09 percent while their three year fixed rate for owner occupiers is sitting at an affordable 2.88 percent.
Other online banks that have been offering home loans include Macquarie-backed fintech Athena Home Loans and digital-only brand owned by NAB, UBank.
As we all look for easier ways to control our money, digital banks are providing Australians more choice and quicker processes, challenging the traditional banking systems.
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