Net big savings with an online home loan.

If you’re looking for a better home loan deal there is now an option that could be saving you thousands of dollars. Banks have taken note of the growing percentage of the population that are comfortable with shopping and doing their finances online. We’ve seen the success of high interest online savings accounts and now comes an even bigger step with reduced interest rate online only home loans. Under subsidiary brands such as UBank owned by NAB, or Bankwest owned by the Commonwealth Bank, banks are offering some super low interest rates exclusive to online customers. There’s less expense for the bank when you apply online and the banks are generously handing that saving over to you.

For an example of the savings available, we took a home loan of $500,000 with an average big four bank interest rate of  6.82% and compared it to the best online home loan rate of 5.62% offered by UBank. The big four loan racked up a cost of $21,720 over 1 year compared to the  $17,276 for UBank’s online UHomeLoan. That’s an impressive yearly saving of $4,444 from the online home loan.

The only catch with most online home loans is that they are primarily catered for people looking to refinance their current mortgage, so you generally need to have a LVR less than 80% to catch the online home loan deals.

While the application is done online you still get access to phone help from the bank. The interest rate is already discounted so you don’t need to haggle for a better interest rate, exit fees have been scrapped and with comparison websites like Mozo, means looking for a  home loan has never been easier.

Here’s some of the lowest rate online home loans:

*The Comparison Rate combines the lender’s interest rate, fees and charges into a single rate to show the true cost of a home loan. The comparison rate displayed is for $150,000 over 25 years, and applies only to this example. Fixed rate loans assume a 3 year fixed term. Different amounts and terms will result in different comparison rates. Full comparison rate schedules are available from lenders. Costs such as redraw fees or early repayment fees, and savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

Net big savings with an online home loan. was last modified: October 16, 2012 by Kevin Boyle

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3 Comments - Write a Comment

  1. Kevin Boyle

    Kicking off a blog can be a lot of fun and you can start off for free on eblogger or Word Press. How it looks and engages just depends on how much time and effort you put in.

    If you need any more help feel free to send me a line on my G+

  2. David from · Edit

    Online mortgage lending is certainly a homebuyer’s dream as it takes far less time and broadens the options for finding a loan. To improve your chances of scoring a good home loan deal, build up your credit score further and save up as much deposit as you can.

  3. Most banks these days offer all kinds of transactions via their online service, but not all will pass any savings onto the customer. Maybe it’s due to the fact that banking via the internet can be so convenient, they have to charge you FOR that convenience. Taking the time to look at different banks and their loan options – whether they be business, personal or mortgage related – will help ensure you get the best deal on offer. Sometimes the perks are not just savings on interest rates, but cash back or retail coupons when using their bank cards or shopping at any of their sponsored outlets.


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