86 400 launches new tiered variable rates to help borrowers save

Australian neobank 86 400 has announced it will be offering tiered variable rates for home loan customers, giving those with a lower LVR (Loan to Value Ratio) the chance to access cheaper rates.

The new pricing system means borrowers with a deposit of at least 40% of a property’s value can pay as little as 2.59% p.a. (2.87% p.a. comparison rate*). According to 86 400’s lending product lead, Melissa Christy, this will go a long way towards freeing up customers’ finances.

"We built 86 400 to help Australians take control of their money. By reducing the variable loan rates for customers with more equity in their property, we are helping our customers do more with their money,” she said.

The new rates came into effect 20 August 2020, and will be available to all customers, including existing ones. The tiers and accompanying rates for owner occupiers making principal and interest repayments are listed below:

• LVR ≤ 80%: 2.74% p.a. (3.02% p.a. comparison rate*)
• LVR ≤ 70%: 2.64% p.a. (2.92% p.a. comparison rate*)
• LVR ≤ 60%: 2.59% p.a. (2.87% p.a. comparison rate*)

Investors will also be able to take advantage of the new pricing system, with rates as low as 2.89% p.a. (3.17% p.a. comparison rate*) available. Below are the price bands for investors making principal and interest repayments:

• LVR ≤ 80%: 3.09% p.a. (3.36% p.a. comparison rate*)
• LVR ≤ 70%: 2.99% p.a. (3.27% p.a. comparison rate*)
• LVR ≤ 60%: 2.89% p.a. (3.17% p.a. comparison rate*)

While rate discounts by LVR are nothing new, they’ve become more popular in recent months as lenders look to peel away low-risk refinancers from competitors. A lower LVR means borrowers are less likely to enter negative equity territory and be forced to sell during a downturn. 

86 400 is also offering $2,000 cashback on settlement for eligible borrowers. The offer is available on applications of $250,000 or more, so long as they are received by 31 August 2020 and settled by 31 October 2020.

For more information, read our review for the 86 400 Own Home Loan. And if you’re wondering how the rates on offer compare to others on the market, browse our home loan comparison page, where you’ll be able to filter your search by rate and type.

Home loan comparisons on Mozo - last updated 12 August 2022

Search promoted home loans below or do a full Mozo database search . Advertiser disclosure
  • Variable Home Loan 70

    interest rate
    comparison rate
    Initial monthly repayment
    3.10% p.a. variable
    3.12% p.a.

    Affordable home loan rate for buyers or refinancers.. No monthly or ongoing fees. Option to add an offset for 0.10%. Access to savings with unlimited redraws available. Minimum 30% deposit required.

  • Unloan Variable

    Owner Occupier, Refinance Only

    interest rate
    comparison rate
    Initial monthly repayment
    3.14% p.a. variable
    3.06% p.a.

    For refinancers only. Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply in as little as 10 minutes.

  • PAYG Home Loan

    Owner Occupier, Principal & Interest, LVR<80%

    interest rate
    comparison rate
    Initial monthly repayment
    3.29% p.a. variable
    3.33% p.a.

    Low variable rate. Ideal for new home buyers or refinancers. Unlimited additional repayments. Unlimited free redraw. Application completely online. Optional 100% offset can be added for $120 p.a.. 20% deposit required.

  • Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    3.79% p.a. variable
    3.79% p.a.

    Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required.


* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate, loan amount and term entered. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loan Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.