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86 400 is launching a new home loan product that is said to have the “lowest ongoing variable rate” available to brokers from a bank, according to the lender.
Available to brokers from Monday (16 November), the new Neat home loan comes with a variable rate starting from 2.19 per cent per annum (pa) or 2.20 per cent comparison rate.
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The includes tiered rates by LVR at approval (60 per cent and under; 60-70 per cent; and 70-80 per cent), no ongoing fees, unlimited additional repayments and redraw facilities.
The product is the second mortgage offering launched by the digital mortgage lender, which is named for the number of seconds in a day, after it first launched its home loan products in November 2019 exclusively via the broker channel.
Speaking to The Adviser about the new product, 86 400’s lending product lead Melissa Christy commented: “The Neat home loan has been launched to provide customers choice. We know that the one-size-fits-all type loan doesn’t suit everybody.
“[The mortgage product] we’ve got in market today is a fully featured home loan, but we wanted to also appeal to those who just want something simpler or ‘neater’. So, we’ve designed something that’s simple and has a really low rate to appeal to those people that don’t need all the bells and whistles.”
Ms Christy outlined, for example, that the Neat home loan does not have an offset.
“The Neat loan has no ongoing fees, so it might appeal to customers if they are fee conscious, for example,” she continued.
“I think it really would appeal to those customers that have maybe less equity or less available or additional funds at their disposal... and just want a simple loan with a lower rate,” she said.
CEO Robert Bell added: “With home loan rates continuing to drop across the nation, we’re committed to staying competitive for our customers and brokers. Our new Neat home loan is doing just that currently with the lowest ongoing variable rate via brokers from a bank.
“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.”
Ms Christy told The Adviser that the broker channel “will always be [86 400’s] number one distribution channel” and said the new product and rate provided “a massive opportunity for us, as a new lender, to drive volume and really grow” through the broker channel.
[Related: Digital mortgage provider sees growth during COVID-19]
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