Heritage Bank has announced a new initiative aimed at speeding up the mortgage approvals process for “straightforward” applications.
After months of trial, the Toowoomba-based bank has officially launched its “Fast Track” initiative, which will see qualifying broker-introduced home loan applications approved within one day.
Heritage Bank CEO Peter Lock said that the regional bank has been “investing strongly” and “working hard” to boost its broker proposition, and that the Fast Track initiative was one of the culminations of its efforts.
“We know people don’t want to be kept in limbo, not certain exactly when or if a loan will be approved,” Mr Lock said.
“If it’s a simple loan that fits within our Fast Track criteria, and if brokers provide us with the right documentation, we’ll give them an approval within 24 hours.”
During the preceding trial phase, the regional bank said that it was able to approve more than 10 per cent of the applications submitted by brokers via Fast Track within 24 hours, with the fastest approval taking 90 minutes to process.
The “Fast Track promise” is limited to “straightforward” applications that meet the following criteria:
- Applicants must be Australian residents and permanent citizens, PAYG employees, employed for at least one year, not on probation and with a clear credit history
- No guarantors can be involved
- Loan-to-value ratio must be below 80 per cent, with either an upfront valuation already completed or an automated valuation completed upon submission
- Net servicing ratio must be below 97 per cent
- Correct and complete supporting documentation must be uploaded to the ApplyOnline platform and self-verified by the broker
“We appreciate that a fast turnaround and greater certainty of outcome is attractive to brokers and their clients,” Mr Lock said.
What do you think of the non-major banks?
Momentum Intelligence’s Third-Party Banking Report: Non-Major Lenders 2017, run in partnership with The Adviser, showed that the turnaround of mortgage approvals is a key factor impacting broker satisfaction with lenders.
The 2018 ranking, Third-Party Lending Report: Non-Major Banks survey 2018 has now opened, looking specifically at product offering, technology, broker support and commission.
This is your chance to tell us what the non-major banks are doing well and where they should improve their broker proposition, if they are to win more of your business.
The survey will only take around 10–15 minutes to complete.
Have your say now by completing the Third-Party Lending Report: Non-Major Banks survey online.