86 400 out of the blocks as first Australian neobank to offer home loans

Tom Watson

12 Nov 2019

redactor/hero-images/1169/racing-track-with-block-lane-numbers_content.jpg

To say that 2019 has been a big year for 86 400 may be an understatement, but today’s milestone is certainly one of their biggest yet. 

After obtaining a full banking licence back in July and fully launching bank accounts and savings accounts to the public in September, 86 400 has today become the first Australian neobank to offer home loans to Australian customers.              

In typical neobank fashion 86 400’s home loans aren’t your average offering though, instead they are only available through brokers (for the time being at least) via a completely digitised application and approval process.

According to 86 400, digitising the broker process will all but eliminate paperwork (aside from the contract of sale) and make the approval process up to six times faster than that of the Big Four banks. 

RELATED: Big bank Westpac announces plans for new “banking-as-a-service” digital platform

Among the chief selling points of this fully digital process for home buyers and refinancers is the ability to capture income and expense statements electronically, verify identification on mobile and sign documents electronically.   

“This is a huge moment for the whole team at 86 400, launching our home loans offering just a couple of months after we took our smartbank live to the public,” said 86 400 CEO, Robert Bell.

“We set out to create an entirely new, smarter approach to the home loans application and through technological innovation and collaboration with equally innovative partners we’ve done just that.”

Latest entrant, low rates


Back in September 86 400 launched its Pay Account and Save Account amid plenty of buzz surrounding the low fees and competitive rates it would be able to offer as a neobank. And as of today the Save Account boasts the joint-highest ongoing bonus savings rate in the Mozo database. 

So do the 86 400 Own Home Loans live up to the standard they’ve already set, and what kind of fees and features can borrowers expect? 

86 400 is offering rates on its Own Home Loan (Fixed) for owner occupiers making principal and interest repayments as low as 2.88% (3.31% comparison rate*) for 2 and 3 year fixed terms, while variable rates on the Own Home Loan will start from 3.09% (3.36% comparison rate*). 

According to the latest figures from the Mozo database, 86 400’s 2.88% (3.31% comparison rate*) fixed interest rate for 2 and 3 years positions it as one of the most competitive around. 

To see for yourself check out the table below for some of the lowest fixed 3 year rates currently^ in the Mozo database.


86 400 home loans are available to a variety of different borrowers including owner occupiers, investors, purchasers and refinancers and they’ll include features like a redraw facility for both fixed and variable loans and a rate lock option for up to 90 days. 

Customers with a variable rate home loan will even be able to reduce their regular repayments by linking their loan to one or multiple offset accounts via an 86 400 Pay or Save account.

There are a number of fees associated with 86400’s home loans though, including a $250 loan advance fee, a $250 annual fee and a potential valuation fee.

RELATED: Neobank 86 400 makes a grand entrance with public launch!

Interested in learning more about neobanks like 86 400? Have a browse through our digital banking guide for even more information, or compare 86 400’s home loans with some of the hottest home loans around in the table below. 

^As of 12 November, 2019. 

Compare home loans 2019

Rates updated daily. Advertiser disclosure.

  • loans.com.au

    1.99% p.a.variable for 12 months and then 2.48% p.a. variable

    2.47% p.a.

    Product details Close details
    • 1.99% p.a.variable for 12 months and then 2.48% p.a. variable

    • 2.47% p.a.

    • $520

    • $0.00

    • $0.00

    • yes - free

    • yes - free

    • Optional - with 0.10% additional interest

    • $520

    • 80.00%

    • $50,000

    • $1,000,000

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the Smart Booster Home Loan

    Details Close

  • Athena

    2.19% p.a. variable

    2.19% p.a.

    Product details Close details
    • 2.19% p.a. variable

    • 2.19% p.a.

    • $0

    • $0.00

    • $0.00

    • yes - free

    • yes - free

    • no

    • $0

    • 60.00%

    • $100,000

    • $2,000,000

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the Celebrate Variable Home Loan

    Details Close

  • UBank

    2.34% p.a. variableApply now to get this rate from 29 Nov

    2.34% p.a.Apply now to get this rate from 29 Nov

    Product details Close details
    • 2.34% p.a. variableApply now to get this rate from 29 Nov

    • 2.34% p.a.Apply now to get this rate from 29 Nov

    • $0

    • $0.00

    • $0.00

    • yes - free

    • yes - free

    • no

    • $0

    • 80.00%

    • $100,000

    • -

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the UHomeLoan - Discount Offer

    Details Close

  • Virgin Money

    2.04% p.a.
    fixed 3 years

    2.73% p.a.

    Product details Close details
    • 2.04% p.a.
      fixed 3 years

    • 2.73% p.a.

    • $450

    • $10.00 monthly

    • $350.00

    • yes - up to $10,000 per annum

    • no

    • no

    • $450

    • 80.00%

    • $300,000

    • -

    • Fixed

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    • $3,000 cashback for new borrowings of at least $300,000 with applications made by 29 November 2020 and settled by 28 February 2021.

    Read our Mozo Review to learn more about the Special Offer Reward Me Fixed Rate Home Loan

    Details Close