86 400 Own Home Loan (Fixed)

Mozo snapshot:

Ready to lock down a seriously low fixed rate? With fixed interest rates from just 2.88% (3.32% comparison rate*) for 2 and 3 year terms, the Own Home Loan (Fixed) from neobank 86 400 could be just the match for you. The loan even comes with handy features like the 86 400 rate lock function and the ability to open multiple offset accounts!

Key features:

The 86 400 Own Home Loan (Fixed) comes with some of the lowest rates in the Mozo database, with the 3 year fixed rate of 2.88% (3.32% comparison rate*) for owner occupiers making principal and interest repayments particularly noteworthy. 

Owner occupier borrowers looking to fix will also be able to grab a 1 year rate of 3.29% (3.39% comparison rate*), a 2 year rate of 2.88% (3.33% comparison rate*) or a 5 year rate of 3.39% (3.49% comparison rate*).

86 400 hasn’t forgotten about investors either, with the Own Home Loan (Fixed) offering a fixed rate of just 3.18% (3.65% comparison rate*) for 3 years. 

Just remember that these rates are based on a maximum LVR (loan-to-value ratio) of 80%, which means you’ll need to come up with a deposit of at least 20%. 

What about features? Well borrowers who are looking to reduce their repayments and interest will be happy to know that 86 400 allows the creation of multiple offset accounts (with either their Pay or Save Accounts), as well as extra repayments (up to $20,000 during the fixed rate period). 

86 400 even offers a ‘rate lock’ feature which allows prospective borrowers to lock in a fixed rate (if they’re worried it might go up) for 90 days from the date when the home loan application is submitted. Just bear in mind that there’s a $500 fee to do so. 

Speaking of fees, there are a couple that you’ll want to consider before sealing the deal. 86 400 charge a $250 application fee, a $250 annual service fee and while any property valuations that come out under $300 are free, if the valuation if higher than that you’ll need to pay the difference above $300. 

Okay, let’s finish things off by talking about 86 400’s application and approval process. At present the Own Home Loan (Fixed) is only available through a broker, but 86 400 have digitised the process for both their customers and brokers to try and ensure that applying for a loan is as simple (and fast) as it can be.

Who it's good for:

With it’s fixed low rates (especially for 2 and 3 years) and features like multiple offset accounts and free extra repayments, the Own Home Loan (Fixed) from 86 400 could be a cost-effective option for homeowners looking for some rate certainty on their mortgages and the ability to reduce their interest and repayments.