A neobank has built a new mortgage product which boasts the lowest ongoing variable rate from a bank distributed via the broker channel.
86 400’s Neat home loan was developed to complement its original product offering and therefore provide customers more choice, partially off the back of broker feedback, according to Melissa Christy, lending product lead at 86 400.
The neobank first launched its Own home loan in November 2019, presenting an entirely digital end-to-end option, which contributed to its competitive rates and fast turnaround times.
“We understand that not every customer is the same and therefore the full flexibility that the Own products provide is not what all customers are after,” said Christy.
“Our new offering provides us with a fuller suite of products. If you want something simple (or Neat!) then Neat provides another option for customers so they can find the loan that's just right for them. If you want full flexibility – and the ability to have part fixed and variable then Own is the option for you."
The Neat variable rates start from 2.19% p.a. (2.20% p.a. comparison rate) and include tiered rates by LVR, no ongoing fees, unlimited additional repayments and redraw facilities. It will be available to brokers on Monday, 16 November.
With both its original Own offering and now with Neat, 86 400's status as a smartbank not only enables digital verification of identity, digital collection of expense and income information and electronic signatures, but also helps to ease some of the most significant pain points for brokers like digital accreditation and speed to decision.
According to Robert Bell, 86 400 CEO, the launch of the Neat home loan shows the bank's full engagement with the current market.
“With home loan rates continuing to drop across the nation, we’re committed to staying competitive for our customers and brokers," he said.
“We’re continuing to challenge the status quo of banking to help more Australians buy, refinance or invest with a range of products to suit them. With approval times in as little as two hours, Australians can see there is a smarter way to getting a home loan in today’s competitive market.”