86 400 out of the blocks as first Australian neobank to offer home loans
12 Nov 2019
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 detailsloans.com.auSmart Booster Home Loan
1 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR
1.99% p.a.variable for 12 months and then 2.48% p.a. variable
2.47% p.a.
A super low introductory rate home loan with no monthly or ongoing fees. Unlimited free redraws and unlimited additional repayments to help you build your equity and own your home sooner. Multiple loan splits available. (Rates revert after introductory period ends). 20% minimum deposit required.
-
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
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- Athena
2.19% p.a. variable
2.19% p.a.
Product details Close detailsAthena Celebrate Variable Home Loan
<60% LVR, Owner Occupier, Principal & Interest
2.19% p.a. variable
2.19% p.a.
Once again Athena has cut rates in line with RBA! Fast online application with no fees. Free extra repayments and redraw facility. Min 40% deposit. Crowned Best New Home Loan for 2020 by the Mozo Experts.^
-
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 detailsUBank UHomeLoan - Discount Offer
Owner Occupier, Principal & Interest
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
Enjoy a super low rate, $0 fees and easy application with the Mozo Experts Choice Home Lender Bank of the Year.^ Free redraw with flexible repayments. Min 20% deposit.
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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
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- Virgin Money
2.04% p.a.
fixed 3 years2.73% p.a.
Product details Close detailsVirgin MoneySpecial Offer Reward Me Fixed Rate Home Loan
Owner Occupier, LVR <80%, 300k+
2.04% p.a.
fixed 3 years2.73% p.a.
Enjoy $3,000 cashback when you refinance with Virgin Money (T&Cs apply). Additional repayments up to $10,000 per annum. Reverts to the discounted variable rate on expiry of the fixed term.
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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
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