Home loan approval in 2 hours: is it possible?

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A new partnership between digital bank 86,400 and Mortgage Choice aims to provide unconditional home approval in as little as two hours – is it really possible?

Neobank 86,400 has announced a new partnership with established brokerage brand Mortgage Choice, which aims to offer seamless digital home loans with unconditional approval in as little as two hours.

That sounds like an incredible promise, especially at a time when some of the big banks have experienced huge delays in loan processing and turnaround times. In the wake of COVID-19, some of the big banks have taken weeks – even months – to assess a loan request.

All of this makes this offer of 86,400 even more promising. But is a two-hour loan approval time really available, or is it more of a marketing gimmick than a standard benchmark for all customers?

George Srbinovski, National Director of Broker Distribution at 86,400, says a fast turnaround with unconditional approval within hours is entirely achievable.

“We are able to start assessing the application as soon as it has been submitted by the broker, and once we receive an application from a broker, the fastest time we have been able to get back to them and their client with a unconditional approval takes just under two hours,” he confirms.

“While our personal best is at this benchmark of just under two hours, we aim to return all applications to the broker with a decision within 24 hours.”

There are some aspects to consider if you are a borrower looking for this type of faster home loan approval, he adds: “At the moment we only accept LVR below 80 %, so the borrower should also meet this criteria.”

But overall, Srbinovski says the digital bank intends to revolutionize the often clunky home loan process by changing customer expectations around turnaround times and service levels.

Emma Dupont-Brown, managing director of product and corporate communications at Mortgage Choice, says this new partnership will also help streamline the loan application process and minimize the burden of “pain point” paperwork for borrowers in adopting a digital process.

“Neobanks are leading the way in customer experience when it comes to applying for mortgages, and this new partnership with 86,400 means our customers can take advantage of a digital mortgage application process, which means a lot less paperwork. , effort and inconvenience,” Dupont-Marron said.

“When it comes to validating the income and living expenses of the applicant, this is done through a secure portal. The applicant provides access to 12 months of income and three months of expenses, which saves them time because they don’t have to go through the steps of downloading all their statements and sending them to the lender.”

When the customer needs to sign a document, even that is completed digitally, paving the way for an end-to-end home loan process that can be done by the borrower wherever it suits them best.

“It’s a transparent process for the consumer and I think we can expect more banks to adopt this process in the future,” Dupont-Brown said.

Ready to apply for a home loan for a new purchase or a refinance? Find out what documents you’ll need to gather for your application and compare competitive rates from a range of lenders.