businessOwned by: Privately Owned
monetization_onFunded by: Cuscal Ltd. and Morgan Stanley Australia Ltd.
securityLMI Provider: None at the moment (loans are not provided above 80% LVR)
account_balanceLender type: Digital Bank
The bank name 86 400 represents the number of seconds in a day. The company chose the name because with their services customers can control their own money, every second of the day.
They have spent eighteen months working through the key pain points for customers and brokers before developing smart technology solutions. They are offering access to home loans with a competitive rate, next to no paperwork and faster time to approval.
Rather than having to submit physical documents, smart technology means applicants are only required to submit a contract of sale for purchases, and no documents are needed to refinance.
But, despite being digital, customers will still be required to go through a mortgage broker to get a home loan with the bank.
COVID-19 Policy (Latest Offers)
86 400 has reduced its fixed rates and introduced a Cashback offer!
Fixed rates now have dropped significantly for 2 year owner occupied principal and interest.
Offer of $2,000 cashback on settlement for eligible applications of $250,000 or more on REFINANCES and PURCHASES (till 31 August 2020).
How do 86 400’s home loans compare?
They are great at
- New convenient, fast loan approval and mobile-friendly mortgage solution
- Next to no paperwork, most tasks are completed online on your smartphone
- Interest rates are good with loans below 80% LVR and you can often borrow more because of their lower serviceability rate
- Can see other accounts you have with other banks / lenders in their banking app
- Low fees and plenty of flexibility in how you make repayments
- Only required to submit a contract of sale for purchase and no other documents payslips are needed
- Facilities like offset accounts and redraw facility
- 24-hour assessment to approval if all information provided and upfront valuation completed
- Free upfront valuations through PropertyHub
- Fully assessed pre-approvals – includes bureau check and serviceability
- Electronic signing of lender application form and loan contracts, only the mortgage needs to be printed and signed
- 24hr Service-level agreement (SLA) for assessment with loan docs issued within 6 hours of formal approval
- Up to 6 offsets and 5 home loans under 1 annual package fee
- Unlimited additional repayments on a variable, up to $20k on fixed per fixed rate period
- Loan terms up to 35 years
- $2,000 cashback offer for new applications (Purchases & Refinances)
- $250 first year annual fee waiver
But they have got some drawbacks…
- Still a very new company
- For tech-savvy people and not for those who want to have access to a physical bank branch
- You need an 80% LVR to get a mortgage with this lender
- They are not very good with complex applications
- Not for self-employed or bad credit borrowers
- You will need to start the process with a broker to apply for a mortgage
- They do not offer bridging loans, reverse mortgages, low doc loans or lines of credit
- A $250 loan advance fee, annual fee and a potential valuation fee
What makes them different?
Australians have experienced challenges while trying to get a home loan, and more than half cite specific problems relating to the application process itself. With 86 400 accounts, customers can get competitive rates, no monthly fees, plus access to Apple Pay, Google Pay, Samsung Pay, Garmin Pay and Fitbit Pay.
The digital bank has partnered with an array of companies to speed up the mortgage application process, including CoreLogic, Equifax, MaxID, FMS, Loanworks, Simpology and Mogoplus.
While 86 400 is not the first lender to offer digital home loans, its offering is unique because it offers home loans exclusively through the broker network.
They opt for an entirely broker-led approach as brokers remain the experts in the mortgage market and are best to assist customers through one of the most significant financial decisions of their lives.
Among the main selling points of this fully digital process for home buyers and refinancers is the ability to capture income and expense statements electronically, verify identification on mobile and sign documents electronically.
86 400 also enables customers to connect all their accounts from over 150 financial institutions in one place to give them a full financial picture.
They uses smart technology to surface the most relevant information about spending, saving and bills, so customers can plan for the future and also look back into their credit history.
What type of home loans do they have?
86 400’s initial home loan offering, which is available for purchasers, refinancers, owner- occupiers and investors, is a fully-featured loan, with fixed and variable rate options.
Despite being a new bank, 86 400 have a broad range of home loans on offer:
Customers with a variable rate home loan will even be able to reduce their regular repayments by linking their loan to one or multiple offset accounts via an 86 400 Pay or Save account.
The loans, which include owner-occupier and investor products, are only accessible exclusively via a select number of mortgage brokers at present.
There are several fees associated with 86 400’s digital home loans though, including a $250 loan advance fee, a $250 annual fee and a potential valuation fee.
|Loan Type||Owner Occupied
|Repayment Basis||Principal and interest
Interest-only (up to 5 years)
|Loan Term||1 to 35 years|
|Loan Amount||$80,000 to $5,000,000 (subject to LVR and postcode)|
|Minimum split loan||$20,000|
How does the 86 400 home loan application process work?
The bank’s application process is almost entirely virtual and is completed on a smartphone.
- Borrowers must submit applications through an 86 400 accredited broker, and the bank will assist in finding one.
- Once applicants have met with their broker, the applicant electronically supplies their income and expenses.
- The data is categorised, verified by the applicants and populated electronically into their application. It is done in minutes and saves the applicant the lengthy process to pull this information or provide paper documents manually.
- Applicants also go through identity verification on their mobile phones and sign most of their loan documents electronically.
- If the loan application is approved, the bank will email the applicant a link to review and sign the loan documents online.
Once everything has been signed and returned, the borrower can sit back and wait for the settlement arranged by the bank.
Compare 86 400 home loans to other lenders
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