Digital home loans: saving Aussies time, money and paper

Tara McCabe

18 Nov 2019

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With neobank 86 400 launching its online home loans this week, the term ‘digital home loans’ has never had more hype. 

86 400’s ‘smart’ home loan must be applied for through a broker but besides the contract of sale, there is no physical paper involved in the process. It can be completed with electronic ID checks, electronic collection of income and expenses and the ability to sign your loan documents online, if you are approved.

The Sydney-based neobank aim to make the process as smooth as possible, finding and putting you in touch with a broker once you have completed the online form. Of course, depending on which broker you end up with, you could wind up having to arrange a meeting in person to go over the finer details.

RELATED ARTICLE: 86 400 out of the blocks as first Australian neobank to offer home loans

Online home loans often eliminate the need for clunky paper application forms, which makes your life easier, and is certainly good news for not only the planet, but also your wallet when you take into account the cost of paper and ink cartridges.

But besides being simply easier, online loans also often offer more competitive rates than the big four banks. And 86 400 is not the only lender offering online home loans with killer rates.

An example of this is UBank’s 3 year fixed interest rate UHomeLoan, which with an annual interest rate of 2.69% (comparison rate 3.19%*), currently offers the lowest rate for this type of home loan in the Mozo database***.

It should also be noted that 86 400’s 3 year fixed interest rate home loan is also in the 2% club, offering interest rates as low as 2.88% p.a. (comparison rate 3.31%*).

Curious to learn more about online home loans and what the application process actually entails? Why not check out the online home loan deals below to find out more.

Promoted

UBank UHomeLoan - Discount Offer
  • 2019 Mozo Experts Choice Award Winner in the Low Cost Home Loan category^

  • Track your application online using UBank’s Application Tracker

  • 2.84% variable interest rate for loans of more than $200,000 (2.84% p.a. comparison rate*)

Not only is this one a Mozo Experts Choice Award winner, but you can easily apply for a UBank UHomeLoan online using your computer, smartphone or tablet. There will be a follow-up phone call from a UBank home loan specialist, but this should be no more than 30 minutes. Following on from there you can upload documents securely, and track your application using UBank’s Application Tracker.

Promoted

loans.com.au Smart Home Loan
  • Low 2.88% p.a. variable interest rate (comparison rate 2.90%*)

  • Zero ongoing or application fees

  • Redraw facility available

If you apply for a loan with Loans.com.au, you can make use of the home loan lender’s online portal onTrack. onTrack can be used to complete and manage your entire application, from initial contact to settlement. You can even communicate with your home loan officer through onTrack’s webchat service. Plus, it comes with a killer interest rate and no upfront or service fees to worry about!

Promoted

Tic:Toc Variable Home Loan
  • Crowned the 2019 Mozo Experts Choice Online Home Lender of the Year^

  • 2.84% p.a. variable interest rate (2.85% comparison rate*)

  • Have your financials digitally validated!

Unique features of Tic:Toc’s home loan application process include a digital property valuation and instant digital validation of all your financials. After the digital property valuation is complete, you’ll know how much you need to borrow, from there you’ll answer a few questions to determine which home loan might be best for you. Your ID is then verified in real time, after which your financials are digitally validated. You can even get an automatic response from a robot! Or if you’d rather have a human touch, you can upload your documents and have them checked by an actual person.

*WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for the amount and term you entered.

**Initial monthly repayment figures are estimates only, based on the advertised rate, and a loan of $500,000 repaid over 25 years. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^ Every year our team of data and money experts compare hundreds of products in the banking world to determine the winners of the Mozo Experts Choice Awards. The awards are designed to find and highlight leading products in the market, to help identify the best deals out there when it comes to loans, insurance and credit cards, for example. You can read more about the awards at our dedicated Mozo Experts Choice Awards page.

***Interest rate correct at the time of writing, Wednesday, 13 November, 2019. Based on an owner, occupier principal and interest, 3 year fixed interest rate home loan of $300,000 with an LVR below 80%.

Mozo may receive advertising fees from the financial institutions, issuers of financial or credit products and third party advice providers that are shown on this page. These fees are based on a cost per click, cost per acquisition, or a fixed fee.