The product is being offered through brokers from Tuesday, coming nine weeks after the bank’s public launch, when it rolled out its savings and transaction accounts.
The new offering is a completely digital solution, with the only paperwork being the contract of sale. Its approval process could be up to six times faster than the average for the big four banks, according to 86 400.
It is available to purchasers, refinancers, owner-occupiers and investors as a fully featured loan, with fixed rate and variable rate options, both with redraw.
The variable rate loan also has the ability to link to both the 86 400 Pay and Save accounts. Rates start from 2.88 per cent per annum.
The neobank said it spent 18 months working on the design to save brokers and homebuyers time and effort, through including features such as electronic statement capture (capture of income and expenses that are pre-populated and automatically added to the loan application), simplified identity verification, electronic signatures and minimal paperwork.
To establish the home loan offering, 86 400 partnered with players such as Simpology for its broker lodgement, MaxID for identity verification, MOGOPLUS for electronic capture of income and expenses and automatic mapping into credit decisioning rules, Loanworks for origination, CoreLogic for valuations and FMS – issue of loan documents and management of settlement.
Melissa Christy, home loan lead at 86 400 said the smart technology works on the brokers’ behalf, to make their work simpler.
“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,” Ms Christy said.
In May, 86 400 partnered with mortgage and finance aggregator Vow Financial and since then has also signed a distribution deal with Specialist Finance Group, which holds a network of 2,800 brokers.
Robert Bell, chief executive of 86 400, commented the launch is a significant moment for his team.
“We set out to create an entirely new, smarter approach to the home loans application and through technological innovation and collaboration with equally innovative partners we’ve done just that,” Mr Bell said.
The neobank gained its ADI license in July.
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
Sarah has a dual bachelor's degree in science and journalism from the University of Queensland.