Neobank 86 400 slashes home loan rates, introduces $2,000 cashback offer

Digital lender 86 400 has announced a number of changes to its suite of home loans this morning, including rate reductions on fixed mortgage offers and a new $2,000 cashback offer. 

The neobank has cut fixed rates on its Own Home Loan (Fixed) offer for owner occupiers to ‘all-time low’ levels, with reductions between 15 and 35 basis points. Here's how the new rates sit: 

- 1-year fixed rate: Reduced by 35bp to 2.24% (3.10% comparison rate*) 

- 2-year fixed rate: Reduced by 35bp to 2.24% (3.02% comparison rate*) 

- 3-year fixed rate: Reduced by 30bp to 2.29% (2.98% comparison rate*) 

- 5-year fixed rate: Reduced by 15bp to 2.69% (3.06% comparison rate*) 

According to our latest figures, that puts the new fixed rates on offer from 86 400 among the lowest in the Mozo database and well below the current Mozo averages. For instance, the average for 1-year fixed rate home loans is currently 2.71% and 2.65% for 2-year loans. 

86 400’s variable Own Home Loan rate for owner occupiers has remained unchanged, currently sitting at 2.74% (3.02% comparison rate*) - 0.70% below the Mozo database average of 3.44%.

On top of the rate cuts, 86 400 also announced a new limited-time cashback deal. 

Applicants who borrow $250,000 or more will be to receive $2,000 cashback on eligible home loans when they apply between May 4 - June 30 and settle their loan before August 31. 

“From the start we’ve set out to be a smarter alternative to the Big Four and today’s changes demonstrate that, by helping Australians get a better deal on their home loan and putting money back in their pocket which has never been more important,” said 86 400 CEO, Robert Bell. 

RELATED: April home loans snapshot: Here’s where fixed and variable rates now stand

Interested in learning more about 86 400 and its products? Take a look through our 86 400 review, or find out how 86 400’s home loans stack up against other offers by heading over to the Mozo home loan comparison hub.

Home loans 2020 - last updated 19 March 2024

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  • Straight Up

    Obliterate, Owner Occupier, Principal & Interest, <50% LVR

    interest rate
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    Initial monthly repayment
    6.24% p.a. variable
    6.24% p.a.

    Get a low variable rate depending on your deposit with Athena’s Straight Up Variable Home Loan. AcceleRATES feature helps you to reduce your home loan even faster (T&Cs apply). Zero fees to pay. Free redraw facility. Handy mobile app to manage your home loan.

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  • Neat Home Loan

    Owner Occupier, Principal & Interest, LVR <60%

    interest rate
    comparison rate
    Initial monthly repayment
    6.14% p.a. variable
    6.16% p.a.

    Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.

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  • Mozo Expert Choice Badge
    Fixed Rate Home Loan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    5.99% p.a.
    fixed 2 years
    6.24% p.a.

    Secure a low rate and enjoy the certainty of repayments, with the BCU Fixed Rate Home Loan. Save with no ongoing annual fees. Pay up to $25,000 extra during a fixed period (T&Cs apply). Lock in for up to 5 years.

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* 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. You can change the loan amount and term in the input boxes at the top of this table. 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.

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