Australia’s first ‘smartbank’ has announced a range of changes to its digital home loan products, distributed exclusively through brokers, which come into effect from today, 7 May 2020.
86 400 have reduced their fixed rates, bringing the 1- and 2-year terms to an all-time low of 2.24% p.a. for owner occupied P&I.
The neobank has also reduced its minimum serviceability floor rate from 5.50% to 5.25% on new applications for 86 400 Own home loans.
Lastly, the group has launched a $2,000 cashback offer on home loan applications received between 4 May and 30 June 2020 with minimum borrowings of $250,000 that settle before 31 August.
“From the start, we’ve set out to be a smarter alternative to the big dour and today’s changes demonstrate that, by helping Australians get a better deal on their home loan and putting money back in their pocket which has never been more important,” said 86 400 CEO Robert Bell.
The group also highlighted that, as the first and only digital home loan for brokers, it can provide unconditional approval on applications in just hours – a feat made all the more impressive given the influx of enquiries weighing down other banks’ turnaround times.
“This is a time when brokers and applicants are looking for certainty, and increased processing and waiting times lead to increased pressure on borrowers,” said George Srbinovski, 86 400 national manager of broker distribution.
“Our application process gives applicants quick approval, as well as a view of where they stand financially before making such a big financial decision, which is crucial through this challenging time.”
86 400 has been touting their mortgage offering as the “social-distancing-friendly” home loan, given that the entire application process is completed digitally, without the need for payslips or face-to-face interaction.