Neobank 86 400 slashes fixed home loan rates as others increase them

author-avatar By on June 16, 2021
Neobank 86 400 slashes fixed home loan rates as others increase them

This morning 86 400 cut fixed home loans rates by up to 31 basis points, at a time when many other lenders are raising theirs.

86 400's cuts were seen across both investor and owner occupier home loans. Full details of the cuts are below:

  • Own Home Fixed 1 Year: Cut by 31 basis points to 1.84% p.a. (2.63% p.a. comparison rate*)
  • Own Home Fixed 2 Years: Cut by 9 basis points to 1.89% p.a. (2.59% p.a. comparison rate*) 
  • Own Home Fixed 3 Years: Cut by 16 basis points to 1.99% p.a. (2.58% p.a. comparison rate*)

All owner occupier home loan cuts were for borrowers paying principal and interest (P&I), while for investors, there were some cuts for interest-only (IO) home loans:

  • Investment IO Fixed 1 Year: Cut by 15 basis points to 2.44% p.a. (2.85% p.a. comparison rate*)
  • Investment IO Fixed 3 Years: Cut by 10 basis points to 2.49% p.a. (2.49% p.a. comparison rate*)
  • Investment P&I Fixed 1 Year: Cut by 15 basis points to 2.24% p.a. (2.84% p.a. comparison rate*)
  • Investment P&I Fixed 3 Years: Cut by 15 basis points to 2.24% p.a. (2.79% p.a. comparison rate*)

All home loans are for borrowers with a maximum loan-to-value ratio (LVR) of 80%. 

"Our mission at 86 400 is to help Australians take control of their money and that means reviewing our rates on a regular basis, regardless of what the rest of the market is doing," 86 400's head of lending Melissa Christy told

"Our smarter, simpler, digital alternative to home loans will help put more Australians on the financial fast track to property ownership, or give them a better rate on their existing mortgage."

Lenders have been increasing their fixed home loan rates lately, including ANZ, Westpac twice, CommBankNAB, and Citi, just to name a few. 

This morning, Newcastle Permanent increased some home loan rates by up to 20 basis points.

However, Greater Bank cut in a similar fashion to 86 400 today, cutting interest rates on investment loans fixed between one and three years by up to 30 basis points.

Advertisement: Compare some of 86 400's home loans for owner occupiers below.

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. Rates correct as of . View disclaimer.

Image Source: Supplied


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 2020. They are (in descending order): Great Southern Bank, 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 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.
  • If you click on a product link and you are referred to a Product or Service Provider’s web page, it is highly likely that a commercial relationship exists between that Product or Service Provider and

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.

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

*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.

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Harrison is's Assistant Editor. Prior to joining Savings in January 2020, he worked for some of Australia's largest comparison sites and media organisations. With a keen interest in the economy, housing policy, and personal finance, Harrison is passionate about breaking down complex financial topics for the everyday consumer.

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