Pop the $10,000 question – how much could an online home lender save you?

Aussies you are in danger of being too loyal to your banks and are missing out on great savings from online lenders. Forget playing with your hair, batting your eyelashes and smiling seductively, the best way to flirt with the banks is by being promiscuous (scandalous we know!).

The Mozo team compared 365 home loan products from 75 providers – in the Mozo Experts Choice Home Loan Awards – and found 8 out of the top 10 best value home loans in the market are from online lenders.

Why aren’t online providers popular?

Mozo’s online lenders survey showed just 1 in 4 Aussies would consider applying for a home loan online, however the majority agreed that the main benefit of getting a home loan through an online lender would be the cheaper interest rates.

The study highlighted the main reason consumers don’t get a home loan with an online lender was not knowing enough about the providers. Just like in the dating world, becoming well-acquainted takes time, so start with a bit of online home loan recon work.

There are several things to tick off the perfect provider list before applying, such as visiting the About Me section of the provider’s website to see if it’s backed by a well-established bricks and mortar company and reading customer reviews from Aussies like you in Mozo’s rate and review section.

What are the savings?

There’s generally no reason to avoid using an online lender. How often do you really need face to face interaction with your bank manager? If the answer is “rarely”, you could be paying thousands of extra dollars for a service you don’t use.

While we may shy away from an online home loan, the fact is online lenders could save you big bucks. Our research showed you could save $10,000 over 5 years by switching from the average big 4 bank home loan to the lowest rate online home loan. That’s huge, especially when you think about how many date nights and romantic holidays that could buy.

So before you give online lenders the cold shoulder, compare Mozo’s home loan hub and check out the offers in the market right now.

The 10 best value home loans in the Mozo Experts Choice Awards are:

Award

Provider

Product

5 Year Cost

Variable Rate

Lender Type

Gold

loans.com.au Dream Home Loan Variable

$65,029

4.54%

Online

Silver

UBank UHomeLoan

$65,382

4.62%

Online

Bonze

bankmecu Basic Home Loan Special

$66,659

4.69%

Traditional

4

iMortgage Essential Home Loan

$66,984

4.69%

Online

5

State Custodians Peak Performance Offset

$67,419

4.59%

Online

6

eMoney Prime Full Doc 80

$68,422

4.65%

Online

7

iMortgage Fusion 80

$68,422

4.79%

Online

8

The Rock Essentials Home Loan

$68,457

4.79%

Traditional

9

iMortgage Fusion 80 (ProPack)

$68,604

4.69%

Online

10

Homeloans Classic

$68,762

4.84%

Online
Mozo assessed the cost of each loan over 5 years by totalling the minimum monthly repayments and all mandatory upfront, ongoing and discharge fees. Repayments based on a $350,000 loan over 25 years. Data correct as at 14 July. Some rates and fees may have changed. To view current rates and fees please click on the product name link.
Pop the $10,000 question – how much could an online home lender save you? was last modified: July 29, 2014 by Rebeccah Elley

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