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

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
Smart Booster Home Loan
2 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR
interest rate
comparison rate
1.85% p.a.variable for 24 months and then 2.25% p.a. variable2.21% p.a.New super low introductory rate home loan for two years. Min 20% deposit. No monthly or ongoing fees. Fast settlement times. Mozo award-winning online lender. Friendly, local Australian based team.
Smart Booster Home Loan
New super low introductory rate home loan for two years. Min 20% deposit. No monthly or ongoing fees. Fast settlement times. Mozo award-winning online lender. Friendly, local Australian based team.
- interest rate
- 1.85% p.a.variable for 24 months and then 2.25% p.a. variable
- comparison rate
- 2.21% p.a.
- Upfront fees
- $520
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- Optional - with 0.10% additional interest
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $50,000
- maximum borrowing amount
- $1,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Smart Booster Home Loan
Neat Home Loan
Owner Occupier, Principal & Interest, LVR <60%
interest rate
comparison rate
1.89% p.a. variable1.90% p.a.Competitive variable rate. Borrowers choose their repayment schedule (weekly, fortnightly or monthly) Make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.
Neat Home Loan
Competitive variable rate. Borrowers choose their repayment schedule (weekly, fortnightly or monthly) Make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.
- interest rate
- 1.89% p.a. variable
- comparison rate
- 1.90% p.a.
- Upfront fees
- $250
- Ongoing fees
- $0.00
- Discharge Fee
- $300.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 60.00%
- minimum borrowing amount
- $80,000
- maximum borrowing amount
- $5,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Neat Home Loan
Celebrate Variable Home Loan
<60% LVR, Owner Occupier, Principal & Interest
interest rate
comparison rate
2.14% p.a. variable2.14% p.a.Rates have moved in line with RBA. Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required.
Celebrate Variable Home Loan
Rates have moved in line with RBA. Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required.
- interest rate
- 2.14% p.a. variable
- comparison rate
- 2.14% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- yes
- Maximum loan to value ratio
- 60.00%
- minimum borrowing amount
- $100,000
- maximum borrowing amount
- $2,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Celebrate Variable Home Loan
Basic Home Loan
Owner Occupier, LVR<60%, Principal & Interest
interest rate
comparison rate
2.39% p.a. variable2.39% p.a.Competitive low variable rate. No application or account management fees. Flexibility to split your loan and set different repayment types. Fee free withdrawals of your savings.
Basic Home Loan
Competitive low variable rate. No application or account management fees. Flexibility to split your loan and set different repayment types. Fee free withdrawals of your savings.
- interest rate
- 2.39% p.a. variable
- comparison rate
- 2.39% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $400.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 60.00%
- minimum borrowing amount
- $150,000
- maximum borrowing amount
- $5,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Basic Home Loan
* 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, loan amount and term entered. 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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