86 400 has released an eye-catching new proposition to the broker channel with an 85% LVR, no LMI loan.
The neobank, which was bought out by NAB earlier this year, becomes one of the few players on the market to offer such a high LVR without charging LMI, and according to Head of Broker Distribution George Srbinovski, it should help them to increase their offering to the channel.
“We’ll look at an 85% LVR now,” he told Australian Broker. “Previously, we were capped at 80% and now we go up. The great thing about it is that it doesn’t carry any Lenders Mortgage Insurance, and it’s available for all purchasers and refinancers, we’re not specific to just First Home Buyers or industry specific. It’s a really strong product and a great leap forward.”
“It’s a play for everyone up to 85%. We really want to target anyone in that equity bracket, and to support more Australians in their home ownership journey. We wanted to support Australians and we wanted to support the broker channel with a new idea.”
“86 400 is at the forefront of innovation with the first digital home loan product and now we’re innovating into an 85% no LMI space. It’s really exciting.”
Srbinovski said that the product would be available with all of the same trappings that brokers have come to expect from 86 400.
“Innovation is what hopefully brokers will come to expect from 86 400, and what I’m most pleased about is that we’re able to support the channel and give them innovation and new products that help their business, and more importantly, their customers,” he said.
“We haven’t narrowed the product offering just to First Homer Buyers. We can look at the refinance market, to upgraders and to people looking at buying a bigger family home but are just short of that deposit and don’t want to pay LMI. It’s a wonderful product.”
“It’s the same credit lending criteria, too, so brokers can expect the more of the same in that regard. The only change is that we have had our debt to income ration capped at six times, but other than that, it’s the same stuff that brokers know from 86 400.”
