Source: 86 400 Twitter
86 400 was the only lender in Savings.com.au's market research to cut home loan interest rates this week as speculation of an RBA rate cut grew.
The neobank cut a variety of fixed and variable home loans for investors, across both interest-only (IO), and principal & interest (P&I) repayment methods.
Interest rates were cut by between 5 and 25 basis points, but 86 400's lending product lead Melissa Christy says this isn't necessarily in anticipation of a potential Reserve Bank cut next month.
"We’ll continue to review our rates based on a range of factors," she said.
Buying an investment property or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for investors.
Lender | |||||||||||||
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| Variable | More details | ||||||||||||
| FEATUREDGREAT INTEREST RATE | Smart Booster Investor Bundle (Principal and Interest)
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Smart Booster Investor Bundle (Principal and Interest)
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| Variable | More details | ||||||||||||
| FEATUREDGET APPROVED FASTER WITH A DIGITAL APPLICATION | Neat Variable Investment Loan (Principal and Interest) (LVR < 60%)
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Neat Variable Investment Loan (Principal and Interest) (LVR < 60%)
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| Variable | More details | ||||||||||||
| 100% FULL OFFSET ACCOUNT | Ocean Investment (Amounts < $1m, LVR < 60%)
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Ocean Investment (Amounts < $1m, LVR < 60%)
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- Option to add an offset for 0.10%
- No monthly or ongoing fees
- Unlimited redraws
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 July 3, 2022. View disclaimer.
Some of 86 400's home loans to get a cut were:
- Investment Own Fixed P&I 1 Year: 20 basis point cut to 2.49% p.a. (2.95% p.a. comparison rate*)
- Investment Own Fixed IO 1 Year: 20 basis point cut to 2.69% p.a. (2.96% p.a. comparison rate*)
- Investment Own Variable P&I 60%: 20 basis point cut to 2.69% p.a. (2.97% p.a. comparison rate*)
- Investment Own Variable IO 70-80%: 25 basis point cut to 3.19% p.a. (3.25% p.a. comparison rate*)
Ms Christy said for an investor facing deferred rent and a tougher rental market, switching to interest-only could be preferable to deferring their mortgage entirely.
"That would enable customers to still meet the interest component of their loan each month, and avoid interest being capitalised as this increases the overall amount owed over the term of the loan," she said.
Deferring a mortgage could leave a borrower thousands of dollars worse off in the long term due to interest capitalisation.
86 400's cuts come mere days after the neobank also cut its savings account interest rate again.
It's now down to 1.35% p.a., representing a 25 basis point cut.
In an email to customers, 86 400 cited the "economic environment" as its reason for the savings account cut.
Below are now some of the highest interest rates on savings accounts in the market, across both introductory and ongoing accounts.
Rates based on a savings balance of $10,000. Sorted by total interest rates. Refer to providers' websites for bonus rate conditions and for any applicable fees and charges. Rates correct as of July 3, 2022. View disclaimer.
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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