86 400 launches all-digital home loans

author-avatar By on November 12,2019
86 400 launches all-digital home loans

Image supplied by 86 400

86 400 has today unveiled Australia’s first-ever digital home loan through brokers, allowing Aussies to get approved for a mortgage up to six times faster than the big four.

The loans are only available through mortgage brokers, facilitated through 86 400’s platform.

The fully digitised home loan process means brokers will be able to process loan applications faster than they have before, according to 86 400 Home Loans Lead Melissa Christy.

“We’re aiming for six times faster than the average of the big four banks, so customers will know within 24 hours if they’ve been approved,” Ms Christy told Savings.com.au.

86 400 home loans

Despite being a new bank, 86 400 have a broad range of home loans on offer:

  • There are loans for investors, refinancers, purchasers and owner-occupiers
  • Each of these loans have fixed and variable rate options, both with redraw facilities
  • Those who opt for a variable rate will be able to link to multiple offset accounts (both 86 400 Pay and Save accounts)
  • Fixed interest rates start at 2.88% p.a. and variable interest rates start from 3.09% p.a. (comparison rates differ, see 86 400’s website for a full list of rates)
  • There are interest-only (IO) as well as principal and interest (P&I)

How 86 400’s home loan application process works

Robert Bell, CEO of 86 400 said the neobank has spent eighteen months working through the key pain points for customers and brokers before developing smart technology solutions.

“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,” Mr Bell said.

The digital bank has partnered with an array of companies to speed up the mortgage application process, including CoreLogic, Equifax, MaxID, FMS, Loanworks, Simpology and Mogoplus.

Ms Christy said they’re able to achieve faster mortgage application times by replacing paperwork with digital verification of identification, income and expenses.

“Once applicants have met with their broker, they electronically provide their income and expenses. This data is categorised, verified by the applicants and automatically populated into the application. This happens in minutes and saves the applicant the lengthy process of having to manually pull this information or provide paper documents,” Ms Christy told Savings.com.au.

86400 statements

Source: 86 400

“Applicants also go through identity verification on their mobile and sign their loan documents electronically. By using smart technology we are able to get a very accurate picture of the applicants’ financial position upfront and save time and effort for both the applicant and the broker along the way.”

Rather than having to submit physical documents, smart technology means applicants are only required to submit a contract of sale for purchases, and no documents are needed to refinance. Borrowers will also benefit from electronic statement capture, electronic signatures, and simplified identity verification on your mobile.

86 400 is also partnering up with two mortgage aggregators, Vow Financial and Specialist Financial Group. Together, that equates to 2,800 mortgage brokers in Australia offering home loans from 86 400 as of today.

While 86 400 isn’t the first lender to offer digital home loans (Tic:Toc and Athena currently offer online home loans) 86 400’s offering is unique in that it’s partnering with mortgage brokers.

While not ruling out the possibility of offering home loans directly to customers down the track, Ms Christy said many borrowers apply for their mortgage through a broker.

“We are progressively rolling out with selected brokers, as brokers currently make up almost 60% of all home loan processes in Australia. They also provide the customer with important face-to-face contact for such a big financial decision and can assist the customer to find the best lender and best product to suit their specific circumstances,” Ms Christy said.

“We know mortgage brokers drive competition and choice for consumers, which is why we have focused on erasing their pain points so they can deliver the best value to customers. This is the first offering in recent years that offers real, tangible benefits to both brokers and homebuyers.”

Below are some of the lowest variable home loan rates on offer across the big four banks, customer-owned banks and larger non-banks.

Provider Ad rate
Comp rate*
Purchase or Refi, P&I 80% Smart Home Loan 2.88% 2.90% $1,660 More details
Discount Variable 80% 3.07% 3.12% $1,702 More details
Base Variable Rate Special P&I 3.20% 3.20% $1,730 More details
Ad rate
Comp rate*
Purchase or Refi, P&I 80% Smart Home Loan
2.88% 2.90% $1,660
More details
Discount Variable 80%
3.07% 3.12% $1,702
More details
Base Variable Rate Special P&I
3.20% 3.20% $1,730
More details

Base criteria of: a $400,000 loan amount, variable, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. Introductory rate products were not considered for selection. Monthly repayments were calculated based on the selected products’ advertised rates, applied to a $400,000 loan with a 30-year loan term. Rates correct as at 2 December 2019. View disclaimer.


The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:

  • The big four banks are: ANZ, CBA, NAB and Westpac
  • The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2019. They are (in descending order): Credit Union Australia, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
  • The larger non-bank lenders are those who (in 2019) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.

In the interests of full disclosure, Savings.com.au and loans.com.au are part of the Firstmac Group. To read about how Savings.com.au manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.

*Comparison rate includes both the interest rate and the fees and charges relating to a loan, combined into a single percentage figure. The interest rate per annum is based on a loan credit of $150,000 and a loan term of 25 years.

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Emma Duffy joined Savings.com.au as a Finance Journalist in 2019 after spending a year as the editor of The Real Estate Conversation. She's most passionate about improving the financial literacy of millennials by writing about complex financial topics in a way that's easy for the average Joe (or Jill) to understand.


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