Taking the digital leap with 86 400

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on November 02, 2021 Fact Checked
Taking the digital leap with 86 400

Built for today’s mobile world, 86 400 broke new ground in the Australian banking industry in 2019, launching as a no-frills neobank, stripping out the waste to give back to customers and challenging the status quo of what banking is and how it’s done.

Designed to help Australians feel in control of their money for all ‘eighty-six four hundred’ seconds in everyday, 86 400 is a direct Australian bank with a full banking licence, offering transaction accounts, savings accounts and home loans.

Backed by one of the big four in National Australia Bank (NAB), 86 400’s home loan offerings were designed, developed and implemented by Head of Lending Melissa Christy, who knows a thing or two about banking with previous stints at Virgin Money, St George and Westpac.

Speaking to Savings.com.au, Ms Christy (pictured below) said that by being a digital bank, 86 400 is not encumbered by legacy systems and processes like the traditional banks, which means it can offer customers the best possible rates.

“By shaking up traditional processes and using smart technology to create solutions for long-standing customer pain points, 86 400 loans give customers a clear, accurate and immediate view of their financial situation before committing to a mortgage,” she said.

Making a splash, 86 400 already has over $1 billion in home loans settled and awaiting settlement.

86 400 Melissa Christy.jpg

What home loans does 86 400 offer?

86 400 offers principal and interest (P&I) and interest-only (O) home loans for both owner-occupiers and investors.

These home loans are available in variable and fixed rates, falling under two product categories: ‘Neat’ home loans and ‘Own’ home loans.

A split option of both fixed and variable rates is also available under the ‘Own’ home loan category.

Recently, 86 400 introduced a new 85% loan to value ratio (LVR) tier for both ‘Neat’ and ‘Own’ owner occupied, principal and interest home loans and removed the need to pay Lenders Mortgage Insurance (LMI) with a 15% deposit/equity. This is available to both purchasers and refinancers.

Check out some of 86 400’s home loan offerings in the table below.

Lender
Advertised rate Comparison rate Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval

FixedMore details
RATE LOCK FOR 90 DAYS

Fixed Home Loan 1 year (Principal and Interest) (LVR < 80%)

  • Easy, digital application process
  • Market leading app to help you pay off your loan sooner
  • No on-going fees
RATE LOCK FOR 90 DAYS

Fixed Home Loan 1 year (Principal and Interest) (LVR < 80%)

  • Easy, digital application process
  • Market leading app to help you pay off your loan sooner
  • No on-going fees
FixedMore details

Fixed Investment Loan 1 year (Principal and Interest) (LVR < 80%)

  • If the valuation is over $300, we'll cover the first $300. If under $ it's free
  • An easy application with a fast settlement

Fixed Investment Loan 1 year (Principal and Interest) (LVR < 80%)

  • If the valuation is over $300, we'll cover the first $300. If under $ it's free
  • An easy application with a fast settlement
FixedMore details
  • Easy, digital application process
  • Market leading app to help you pay off your loan sooner
  • No on-going fees
VariableMore details

Variable Home Loan (Interest Only) (LVR < 60%)

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of December 7, 2021. View disclaimer.

How does 86 400 stack up to the competition? Check out some other home loan offerings in the table below.

Lender
Advertised rate Comparison rate Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval

VariableMore details
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
VariableMore details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
FixedMore details
RATE LOCK FOR 90 DAYS

Fixed Home Loan 1 year (Principal and Interest) (LVR < 80%)

  • Easy, digital application process
  • Market leading app to help you pay off your loan sooner
  • No on-going fees
RATE LOCK FOR 90 DAYS

Fixed Home Loan 1 year (Principal and Interest) (LVR < 80%)

  • Easy, digital application process
  • Market leading app to help you pay off your loan sooner
  • No on-going fees
VariableMore details
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • Refinance only. Fast online application
  • No Nano fees. Free 100% offset sub account
  • Mobile app, Visa debit card & instant payments
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • Refinance only. Fast online application
  • No Nano fees. Free 100% offset sub account
  • Mobile app, Visa debit card & instant payments

Rates correct as of December 7, 2021. View disclaimer.

Features of 86 400 home loans

The ability to redraw

A redraw facility is available across 86 400’s home loans, providing customers the opportunity to make extra repayments and access those additional payments if they are needed.

Offset accounts

This feature reduces the amount of interest paid each month. For 86 400 customers, this feature is available under the ‘Own’ home loan category on variable rates only.

Additional repayments

86 400 customers can make an unlimited number of additional repayments across majority of the 86 400 home loan portfolio, allowing customers to pay off their loans sooner. Fixed-rate ‘Own’ home loans are limited in the amount of additional repayments to $20,000 per fixed term.

Cloud-based technology

86 400’s platform is entirely digital (including the application process) and readily available in the palm of your hand through smartphones. Applications can take as little as 20 minutes to complete.

How is 86 400 different from the big four banks?

86 400 is a digital lender, which Ms Christy said helps pave the way forward for banking in a technology driven society.

“We’ve built a smartbank that is entirely for smartphones,” Ms Christy said.

“Where traditional banks are encumbered with legacy technologies and branch networks, we are based entirely in the cloud and are all working remotely with no impact to our product roll out or day to day running of the bank.

“This technology foundation allows us to do lots of things that our customers love.

“We show customers what’s actually going on with their money, so they feel in control every second of every day.”

Having recently been acquired by NAB, Ms Christy said 86 400 is determined to continue to provide customers with a smarter alternative to the way they bank currently.

“Smart products and features include our bill predictor and the ability to connect multiple bank accounts within the 86 400 app all provide customers with a better view of their financial picture,” Ms Christy said.

“These aren’t services that are usually associated with traditional banking, but they align with our bank’s purpose - to help Australians take control of their money.”

86 400 customers can connect accounts from over 100 banks and financial institutions across Australia, including transaction and savings accounts, credit cards, personal loans and investment accounts.

Am I eligible for a 86 400 home loan?

If you’re looking into applying for a 86 400 home loan, eligibility requirements that must be met include:

  • Applicants must have at least a 15% deposit or equity (maximum LVR is 85%).

  • Applicants must be buying or refinancing a residential property.

  • Applicants must be an Australian citizen or permanent resident.

  • Applicants must be over the age of 18.

  • Pay-as-you-go (PAYG) employee.

  • Good credit history.

  • Maximum of two applicants per home loan product.

Applying with 86 400

Delving into the details of the 86 400 home loan application process, Ms Christy said both the broker-led solution and the direct home loan process use electronically verified income and expenses to tell applicants exactly where they stand and what they can afford in minutes.

“As part of the application process, 86 400 surfaces the applicant’s annual income and last three months of expenses from any of the banks or financial institutions they provide, giving them an immediate grasp of their financial picture without the need for guesswork or heavy-lifting,” Ms Christy said.

How 86 400’s direct application process works:

  • Check your property with an instant property estimate, powered by CoreLogic, to make sure it fits.

  • Let 86 400 know what you want in a home, get the product that suits your needs, and see what your repayments will be.

  • Provide your details or if you’re an existing 86 400 customer, it’ll populate the application for you.

  • 86 400 will collect your income and expense data digitally and sort it into all the right places, so you don’t have to.

  • Double check all is right or adjust as required and then send it on its way.

How can I refinance with 86 400?

To get started with your home loan application, you can head straight to 86 400’s website - https://www.86400.com.au/ or download the app through the App Store on iOS or Google Play on Android. You can also speak to a 86 400 loan expert on 1300 086 400.


Head image by Lukas Blazek via Unsplash.

In-text image supplied by 86 400. 

Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.

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Jacob Cocciolone joined the Savings team in 2021 as a Finance Journalist. Driven by a passion for keeping Australians up to date with the latest financial news and trends, his areas of interest include financial technology, investing, property and motoring.

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