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Australia's 86 400 introduces 85% LVR loans with no LMI

Wednesday 11 August 2021 14:30 CET | News

Australia-based 86 400 has introduced a new 85% loan-to-value ratio (LVR) tier for owner occupiers making principal and interest (P&I) repayments and waived Lenders Mortgage Insurance (LMI).

For loans under this new tier, homebuyers can borrow with as little as 15% deposit. Typically, borrowers have to pay LMI if they have a deposit below 20%, which can add thousands to the upfront costs of purchasing a property. The cost of LMI usually depends on factors including the loan size, mortgage type, and the amount of the deposit.

The new 85% tier will be available under these 86 400 products:

  • Own variable-rate home loan;

  • Own fixed-rate home loan (1-, 2-, 3-, and 5-year terms);

  • Neat variable-rate home loan.

The interest rate for the 85% LVR loans starts at 2.04% (2.96% p.a. comparison rate) for a one-year fixed rate under the ‘Own’ home loan and at 2.54% p.a. (2.55% p.a. comparison rate) for the ‘Neat’ home loan.


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Keywords: lending, neobanks, digital banking, mobile banking
Categories: Banking & Fintech
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Countries: Australia
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