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

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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 Savings.com.au.

"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.

Lender

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

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Fixed
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  • Make up to $20,000 additional repayments per fixed term
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USE A MARKET LEADING APP TO HELP YOU PAY OFF YOUR LOAN SOONER

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

  • Make up to $20,000 additional repayments per fixed term
  • Redraw available – lets you access any extra loan repayments you’ve made
  • Choose to rate lock for 90 days (fee applies)
Fixed
More details
A MARKET LEADING APP TO HELP YOU PAY OFF YOUR LOAN SOONER
  • Make up to $20,000 additional repayments per fixed term
  • Redraw available – lets you access any extra loan repayments you’ve made
  • Choose to rate lock for 90 days (fee applies)
A MARKET LEADING APP TO HELP YOU PAY OFF YOUR LOAN SOONER

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

  • Make up to $20,000 additional repayments per fixed term
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  • Choose to rate lock for 90 days (fee applies)
Fixed
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  • Make up to $20,000 additional repayments per fixed term
  • Redraw available – lets you access any extra loan repayments you’ve made
  • Choose to rate lock for 90 days (fee applies)

Fixed Investment Loan 2 year (Principal and Interest) (LVR < 80%)

  • Make up to $20,000 additional repayments per fixed term
  • Redraw available – lets you access any extra loan repayments you’ve made
  • Choose to rate lock for 90 days (fee applies)
Fixed
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  • Easy, digital application process
  • Market leading app to help you pay off your loan sooner
  • No on-going fees

Fixed Home Loan 5 year (Principal and Interest) (LVR < 80%)

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Variable
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Neat Variable Home Loan (Principal and Interest) (LVR 70%-80%)

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

Fixed Home Loan 2 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
Fixed
More details
  • Easy, digital application process
  • Market leading app to help you pay off your loan sooner
  • No on-going fees

Fixed Home Loan 3 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
Fixed
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Fixed Home Loan 1 year (Principal and Interest) (LVR 80%-85%)

    Fixed
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    • Make up to $20,000 additional repayments per fixed term
    • Redraw available – lets you access any extra loan repayments you’ve made
    • Choose to rate lock for 90 days (fee applies)

    Fixed Home Loan 2 year (Principal and Interest) (LVR 80%-85%)

    • Make up to $20,000 additional repayments per fixed term
    • Redraw available – lets you access any extra loan repayments you’ve made
    • Choose to rate lock for 90 days (fee applies)
    Fixed
    More details

    Fixed Home Loan 3 year (Principal and Interest) (LVR 80%-85%)

      Fixed
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      • Great Rates
      • Easy to apply
      • Market leading app helps you pay off you loan sooner

      Fixed Home Loan 5 year (Principal and Interest) (LVR 80%-85%)

      • Great Rates
      • Easy to apply
      • Market leading app helps you pay off you loan sooner

      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 May 18, 2022. View disclaimer.


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      author-avatar
      Harrison is Savings.com.au'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 strives to deliver and edit news and guides that are engaging, thought-provoking, and simple to read.

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