Following last week’s hinting that a significant announcement was imminent, neobank 86 400 has confirmed its partnership with Australian Finance Group (AFG).
The arrangement will dramatically expand the bank’s broker distribution network. It initially launched with a “small, controlled” group; soon, one in three mortgage brokers within Australia will have access to its home loans.
As of 10 August, the more than 3,000 AFG brokers will be able to provide 86 400’s fully featured Own home loan products to their customers – the first and only digital mortgage offering for brokers in the country, one which enables digital verification of identity, digital collection of expense and income information and all electronic signatures.
“Brokers and customers want an application experience that’s easy to use and a process that gets them a decision quickly, giving both the broker and customer certainty and peace of mind, and that’s what we’re delivering through our digital solution,” said Robert Bell, 86 400 CEO.
“Partnering with AFG allows us to continue to help more Australians and more brokers realise the benefits of the 86 400 home loan.”
The neobank has sought to directly address some of the biggest pain points for brokers such as digital accreditation and innovating a more equitable claw back provision with a step-down process. The group has also stressed it can provide brokers a yes or no decision in just a few hours, in contrast to the lengethening turnaround times being experienced elsewhere.
86 400 Own Home Loan fixed rates currently sit at an all-time low of 2.24% p.a. (2 year fixed comparison rate: 3.02% p.a.*) for owner occupied principal and interest.
AFG head of sales and distribution Chris Slater has welcomed 86 400 to the group’s lender panel.
“One of our core values over the last 26 years has been supporting our brokers to bring competition to the market and the team at 86 400 are very passionate about competing, so they’ll fit in very well at AFG,” he said.
“We will continue working closely with our brokers and funders like 86 400 to give them the best possible chance to compete for business.”
