With neobank 86 400 launching its online home loans this week, the term ‘digital home loans’ has never had more hype.
86 400’s ‘smart’ home loan must be applied for through a broker but besides the contract of sale, there is no physical paper involved in the process. It can be completed with electronic ID checks, electronic collection of income and expenses and the ability to sign your loan documents online, if you are approved.
The Sydney-based neobank aim to make the process as smooth as possible, finding and putting you in touch with a broker once you have completed the online form. Of course, depending on which broker you end up with, you could wind up having to arrange a meeting in person to go over the finer details.
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Online home loans often eliminate the need for clunky paper application forms, which makes your life easier, and is certainly good news for not only the planet, but also your wallet when you take into account the cost of paper and ink cartridges.
But besides being simply easier, online loans also often offer more competitive rates than the big four banks. And 86 400 is not the only lender offering online home loans with killer rates.
An example of this is UBank’s 3 year fixed interest rate UHomeLoan, which with an annual interest rate of 2.69% (comparison rate 3.19%*), currently offers the lowest rate for this type of home loan in the Mozo database***.
It should also be noted that 86 400’s 3 year fixed interest rate home loan is also in the 2% club, offering interest rates as low as 2.88% p.a. (comparison rate 3.31%*).
Curious to learn more about online home loans and what the application process actually entails? Why not check out the online home loan deals below to find out more.