86 400 introduces game-changing loan to value ratio mortgages

Australia’s first smartbank, 86 400, has today introduced a new 85% Loan to Value Ratio (LVR) tier for Owner Occupied, Principal and Interest home loans, and removed the need to pay Lenders Mortgage Insurance (LMI) with a 15% deposit/equity, knocking thousands off the potential cost of buying or refinancing a property.

Generally, lenders require borrowers to pay LMI when their deposit is lower than 20% of the value of the property, which can end up adding thousands to the total cost of a purchase. 86 400 becomes one of just a handful of Australian banks to waive the need for LMI when deposits/equity are as low as 15%, giving home buyers and borrowers looking to refinance a leg up on the competitive Australian property ladder.

Interest rates for 85% LVR start from 2.04% p.a. for a 1 year fixed rate under the Own home loan (comparison rate 2.96% p.a.) and 2.54% p.a. for a Neat variable rate home loan (comparison rate 2.55% p.a.).

Today, 86 400 has also announced a drop in its other variable and fixed interest rates. The Own home loan 3 year fixed rate now sits at just 1.85% p.a. for Owner Occupied, Principal and Interest for LVRs 80% and under (comparison rate 2.47% p.a. based on an LVR of 60% or less) while the Neat variable has also reduced to 2.09% p.a. for LVRs of 60% and under (comparison rate 2.10% p.a.).

Travis Tyler, Chief Product & Marketing Officer at 86 400, said, “Today, we’ve made it even easier for customers to take advantage of 86 400’s award-winning digital home loans, shaving thousands of dollars off the potential cost of a property. We know how tough it can be to break into the housing market and get ahead on your loan, so we’re helping home buyers get on the financial fast-track with smaller deposits or equity and very competitive rates”.

George Srbinovski, Head of Broker Distribution at 86 400, said, “Over 85% of brokers now have access to our digital end-to-end home loan solutions, complete with competitive rates, next-to-no paperwork and super quick time to approval. But the hard work doesn’t stop here. We’ll continue to invest and innovate, giving broker partners the options they need to help even more Australians realise their home ownership dreams”.

The new 85% Loan to Value Ratio tier is currently available for Owner Occupied home loans with Principal and Interest repayments, including:

• Own home loan, Variable Owner Occupied, Principal and Interest
• Own home loan, Fixed Owner Occupied, Principal and Interest (1, 2, 3, and 5 year terms)
• Neat home loan, Variable Owner Occupied, Principal and Interest

In addition to the new LVR tier, 86 400 Own Home loan applications (up to 85% LVR) will continue to receive an extra head start with $2,000 cashback. The offer is available for purchases and refinances on loans of at least $250,000, submitted by 30 September 2021, and settled by 30 November 2021.

Since launching its first home loan product in November 2019, 86 400 has won numerous industry awards. It currently has $775m in home loans settled and awaiting settlement.

For terms, conditions and more details, visit www.86400.com.au/homeloans