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.