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.

Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.04% p.a.
6.06% p.a.
$2,408
Principal & Interest
Variable
$0
$530
90%
Featured 4.6 Star Customer Ratings
  • No monthly or ongoing fees
  • Unlimited free redraw
  • No application fee
5.99% p.a.
5.90% p.a.
$2,396
Principal & Interest
Variable
$0
$0
80%
Featured Apply In Minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
6.14% p.a.
6.16% p.a.
$2,434
Principal & Interest
Variable
$0
$250
60%
Featured Unlimited Redraws
  • No annual fees - None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
  • Redraw freely - Access your additional payments when you need them
  • Home loan specialists available today
Important Information and Comparison Rate Warning

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. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. 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 . 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)

Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
Important Information and Comparison Rate Warning

Rates correct as of . 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. 





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