Smartbank 86 400 passes on full rate cut on home loans
Australia’s first smartbank 86 400, has passed on the RBA’s full 0.25% p.a. (25 basis points) rate cut to new and existing owner-occupied and investment home loan customers effective as of tomorrow. 86 400’s variable rate for owner-occupiers paying principal and interest is now a low 2.84% p.a. (comparison rate 3.12% p.a.[1]). This will help Australians save an extra $1,250, based on an average new loan of $500,000.
As the first and only neobank to offer mortgages, today’s announcement signals 86 400’s readiness to rapidly scale and challenge the status quo by constantly putting customers first – not only on rates but how traditional mortgages are done.
Operating through brokers since November 2019, 86 400’s market-leading home loan rates, award-winning savings products [2], smart technology and lower cost operating model means 86 400 is delivering on its mission to strip the waste out of banking and give back to customers.
86 400’s proposition has been loved by its early customers and brokers alike for offering;
The first and only fully digital home loan experience via mortgage brokers
Unconditional home loan approvals in less than 24 hours
Up to six offset accounts to allow home buyers to manage their money their way
The ability to connect other bank accounts and see their full finances and loans in the 86 400 app
Smart services, such as Energy Switch, which help customers make meaningful savings on regular expenses
Robert Bell, 86 400 CEO said, “After launching our home loan products late last year, this has been our first opportunity to address a rate cut. As an agile bank, we can make the obvious and simple decisions quicker to put money back in our customers’ pockets.
Passing on the full rate cut today underscores our commitment to helping Australians take control of their money. Whether that’s in saving for a home, simplifying and speeding up the mortgage process or paying their loan off faster through a better rate.”
To find out more about 86 400’s home loans, visit www.86400.com.au/homeloans/
[1] Comparison Rate: The comparison rate is based on a loan of $150,000 over a term of 25 years. WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
[2] Mozo Experts Choice Award 2020 – Regular Saver
Credit criteria, fees and charges apply. Based on 86 400’s credit criteria, residential lending is not available for Non-Australian resident borrowers. Interest rates subject to change.
86 400 Ltd has been granted a full banking licence by APRA and is an authorised deposit-taking institution. 86 400 Ltd ACN 621 804 813 AFSL and Australian credit licence 506560.
