Australia’s Best Value Home Loans Revealed
With property prices skyrocketing across the country, borrowers need to look beyond the big banks to find the best value home loans according to the results of the Mozo Experts Choice Home Loan Awards.
In a comparison of 390 home loans from 81 providers, Mozo identified the ten lowest cost loans across four popular home loan categories including Best Value Variable, Best Value Fixed, Best Value Full Feature and Best Value First Home Loan.
Mozo found that 86% of the best value home loans in Australia are being offered by small and non-bank lenders with online provider Loans.com.au taking out the title for Lender of the Year after impressively receiving an award in all four Experts Choice categories.
“These Awards are designed to find the best value products available to Australians right now and surprisingly our major banks don’t rate a mention when it comes to best value variable, fixed or full feature home loans on the market,” said Mozo Director, Kirsty Lamont.
“While price plays a big role, it’s clear consumers’ comfort with smaller, online and even non-bank brands is increasing,” she said.
Mozo calculated that borrowers with a $300,000 loan could save up to $1,920 in interest and fees each year by switching from the average Big 4 rate to the best on the market.
According to Lamont these results show how much the home loan market has been impacted by “intense” competition and two rate cuts over the past two years.
“Consumers are looking beyond the well-known brands and there are a huge number of providers to choose from.”
ANZ took out the Major Bank Lender of the Year award for having the most competitive loan among the Big 4, whilst bankmecu and iMortgage home loans received top honours across several award categories.
You can see the full list of winners here.