Neobank removes LMI up to 85% LVR

Building on the lending tiers launched last year, the new tier sees rates start from 2.04 per cent per annum (p.a.) for a one-year fixed rate under the Own home loan (comparison rate 2.96 per cent p.a.*) and 2.54 per cent p.a. for a Neat variable rate home loan (comparison rate 2.55 per cent p.a.*).

It is available on the following loans:

• Own home loan, Variable OO P&I;
• Own home loan, Fixed OO P&I (one, two, three and five-year terms); and
• Neat home loan, Variable OO P&I.

According to the lender, the new LMI-free tier would help save borrowers “thousands” from the potential cost of buying or refinancing a property. It estimated this could be as much as $10,962, based on a borrower in Sydney with a 15 per cent deposit buying a $1.01 million property (the median property value in the city).

Speaking of the move, 86 400’s chief product and marketing officer, Travis Tyler, 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, added: “Over 85 per cent 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.”

As well as announcing the new tier, the digital lender has also dropped other variable and fixed interest rates:

• Own home loan three-year fixed rate has dropped to 1.85 per cent p.a. for OO paying P&I with LVRs of 80 per cent and under (comparison rate 2.47 per cent p.a. based on an LVR of 60 per cent or less)
• Neat variable has reduced to 2.09 per cent p.a. for LVRs of 60 per cent and under (comparison rate 2.10 per cent p.a.)

86 400 added that, in addition to the new LVR tier, Own home loan applications (up to 85 per cent LVR) will continue to be eligible for the lender’s $2,000 cashback deal. 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. 

*Calculated on a loan amount of $150,000 for a term of 25 years.

[Related: 86 400 launches direct offering]