Go digital and pay no Lenders Mortgage Insurance!

The latest offering from digital bank 86 400 could save you hundreds!!

From 11 August 2021, digital bank, 86 400, will accept home loan applications with a 15 percent deposit plus purchase costs, with a zero charge for Lenders Mortgage Insurance (LMI).

Things to consider about this offer…

  • Applicable to variable and fixed owner-occupied principal and interest products.
  • Available to both new purchases and refinancing.
  • Unlike other banks offereing a similar deal for select professional industries, this offer is available to applicants across any industry.
  • $2000 cashback available for purchases or refinances (minimum loan limit of $250,000).
  • Not available for people who are self-employed.

Who are 86 400?

86 400 is a fully digital bank founded in 2017 and acquired by NAB in January 2021. It has no branch footprint but 86 400 offer great products and customer service by utilising its digital platform. With this modern platform, you can open accounts at the click of a button all through your smartphone. Using Australian based credit assessment teams and smart tech, 86 400 can process home loan applications at some of the fastest speeds across all banks in Australia, meaning you can get into your home sooner.

What we like about this offer

86 400 utilises advanced technology for its banking systems and processes. The process of loan application and approval are all fully digitised. That’s why we believe it’s one of the best players in the market, especially given the current environment, with intermittent lockdowns across the country making physical contact and document handling undesirable.

Historically, 86 400 accepted applications with a minimum 20 percent deposit only. This new offer allows customers who have a smaller deposit to access their products without incurring any LMI, which is great and rare in the market.

What we don’t like about this offer

There’s very little not to like about this offer. One thing to note is that there’s a separate pricing tier for the loans with less than 20 percent deposits. This means that whilst the bank is more flexible with a smaller deposit, customers will be charged a higher interest rate compared to loans with 20 percent or more in deposit or equity contribution. With that said, the higher interest rate can still be justified in the LMI savings.

$2000 cashback offer terms and conditions

The $2,000 cashback offer for purchases and refinances on own home loan applications applies to applications received by 30 September 2021 and settled by 30 November 2021. The minimum loan amount is $250,000 and is limited to one cashback per primary borrower, regardless of the number of loans. The cashback will be paid into an 86 400 Pay account within 14 days of settlement.

For this special offering (as at 11 August 2021) 86 400 have created a separate tier of pricing. Here's the breakdown:

Variable - Principle and Interest

Home Loan ProductInterest Rate (p.a)
Neat home loan 2.54%
Own home loan 2.74%

Fixed - Principle and Interest

Term Interest Rate (p.a)
1 year fixed2.04%
2 year fixed2.09%
3 year fixed2.19%
5 year fixed2.70%

Please note these prices are subject to change without prior notice. 

Unfortunately, 86 400 won’t lend to you if you’re self-employed. We know this isn’t ideal for many of our clients, but we’re hoping that this policy will change in the very near future. And of course, we’ll be the first to let you know if it does.  

Have a question about how you can borrow? Get in touch today and let’s discuss your many options. 


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