86 400 becomes first neo bank in Australia to offer home loans

Digital bank 86 400 has started offering home loans, becoming the first neo bank in Australia to do so.

Prospective buyers who are eyeing a loan at 86,400, the Sydney-based bank which only launched two months ago, won't need to submit any paper documentation in their applications.

It's been reported the system could take just hours to approve a loan, however it will have to go through a mortgage broker.

The neo bank is offering an owner-occupier variable rate of 3.09 per cent.

Their three year fixed rates for owner occupiers is at 2.88 per cent. 

“86 400 has put an affordable home loan option on the table just two months after launching," RateCity research director Sally Tindall said.

“While their variable rate is significantly lower than the big four banks, if you’re focused on price, there are plenty of cheaper options out there,” Tindall added.