Mortgage Choice and 86 400 partner up, offering completely digital home loans

author-avatar By
on November 03, 2020
Mortgage Choice and 86 400 partner up, offering completely digital home loans

Photo by Ketut Subiyanto from Pexels

86 400 has partnered up with Mortgage Choice to give more brokers and customers access to its digital home loans.

The neobank sided with Mortgage Choice in order to offer a "seamless, digital home loan solution, featuring fast turnaround times with unconditional approval in as little as two hours". 

There were already 12 partners and aggregators working with 86 400, meaning more than half of all brokers in the country now have access to its home loans. 

Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Lender

Variable
More details
UNLIMITED REDRAWS
  • 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%
UNLIMITED REDRAWS

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%
Variable
More details
REFINANCE ONLY
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
REFINANCE ONLY

Variable Rate Home Loan – Refinance Only

  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Variable
More details
AN EASY DIGITAL APPLICATION
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
AN EASY DIGITAL APPLICATION

Neat Variable Home Loan (Principal and Interest) (LVR < 60%)

  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
Variable
More details
NO ONGOING FEES
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
NO ONGOING FEES

Yard PAYG Home Loan (Principal and Interest) LVR ≤ 80%

  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster

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 be 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 August 7, 2022. View disclaimer.

Mortgage Choice General Manager, Product and Corporate Communications, Emma Dupont-Brown said 86 400's digital home loan process eliminates a significant amount of paperwork, which has long been a broker pain point. 

"The bank offers a compelling proposition, being the first of the newly licensed digital banks with home loan and banking solutions, which means Mortgage Choice brokers will now be able to offer a completely digital home loan solution to their customers," Ms Dupont-Brown said. 

“The world of banking and home loans has changed and Fintechs like 86 400 are making a seamless home loan process more accessible.

"Australian consumers are savvy and expect to be able to do more online, (and) this extends to their banking and home loan."

86 400 first launched its fully-digital home loans in November 2019, claiming the process would be six times faster than the average big four bank application time. 

Since then it has introduced tiered variable rates for customers, with lower interest rates for those with more equity in the property(generally available for those with a deposit of 20% or greater). 

For owner-occupiers:

  • 2.49% p.a (2.78% p.a comp rate*) for principal and interest (P&I), variable customers (60% LVR or less);
  • 2.29% p.a (2.73% p.a comp rate*) for three-year fixed P&I customers; 
  • 2.99% p.a (2.93% p.a comp rate) for interest-only (IO), variable customers (60% LVR or less)

For investors: 

  • 2.69% p.a (2.97% p.a comp rate*) for principal and interest (P&I), variable customers (60% LVR or less);
  • 2.49% p.a (2.92% p.a comp rate*) for three-year fixed P&I customers; 
  • 3.09% p.a (3.09% p.a comp rate) for interest-only (IO), variable customers (60% LVR or less)

Lender

Variable
More details
UNLIMITED REDRAWS
  • 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%
UNLIMITED REDRAWS

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%
Variable
More details
REFINANCE ONLY
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
REFINANCE ONLY

Variable Rate Home Loan – Refinance Only

  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Variable
More details
AN EASY DIGITAL APPLICATION
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
AN EASY DIGITAL APPLICATION

Neat Variable Home Loan (Principal and Interest) (LVR < 60%)

  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
Variable
More details
NO ONGOING FEES
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
NO ONGOING FEES

Yard PAYG Home Loan (Principal and Interest) LVR ≤ 80%

  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster

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 be 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 August 7, 2022. View disclaimer.

According to 86 400 National Manager, Broker Distribution, George Srbinovski, this partnership allows 86 400 to turn the traditional home loan application on its head and "continue to challenge the status quo" in the home loan market.

"Being a digital bank means we aren’t encumbered by legacy systems and processes, which means we can offer our customers the best possible rates. 86 400’s digital home loans solution offers customers access to a competitive interest rate, next to no paperwork and a faster approval time than the big four banks," Mr Srbinovski told Savings.com.au.

"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."

Mr Srbinovski also noted that 86 400 is still the only neobank to offer home loans to customers.

"For new banking entrants to be sustainable, they need to balance their deposits with their lending," he said.

"86 400 has a long-term, sustainable business model which balances both sides of the ledger, and are continuing to roll out products and partnerships we know our customers want."

As at September 2020, 86 400 had a combined $62 million between residential and investment housing loans on its books. 

This makes it one of the smallest registered ADIs in terms of home lending, but as 86 400 told Savings.com.au back in July, it has some ambitious growth targets. 




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.

Latest Articles

author-avatar
William Jolly joined Savings.com.au as a Financial Journalist in 2018, after spending two years at financial research firm Canstar. In William's articles, you're likely to find complex financial topics and products broken down into everyday language. He is deeply passionate about improving the financial literacy of Australians and providing them with resources on how to save money in their everyday lives.

Collections:

Be Savings smart.
Subscribe for free money newsletters.

By subscribing you agree
to the Savings Privacy Policy