Digital home loans: saving Aussies time, money and paper

By Tara McCabe · Monday, 18 November 2019 · 3 min read

Fact Checked

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.

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.

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Important disclosures and comparison rate warning*

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Comparison rate warning

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 $150,000 over 25 years.

How Initial Monthly Repayments figures are estimated

Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. 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.

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*)

Find out more

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.

loans.com.au - Smart Home Loan 80

Low 2.88% p.a. variable interest rate (comparison rate 2.90%*)
Zero ongoing or application fees
Redraw facility available

Find out more

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!

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!

Find out more

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.

^ 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%.

^* 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 $150,000 over 25 years.

^** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. 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.

^See information about the Mozo Experts Choice Home Loan Awards

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