Four in five home borrowers make $18,000 mistake
Mozo
19 Feb 2019
There is an easy way to potentially save thousands on your home loan, but surprisingly, most Aussies ignore it. Four in five borrowers take out a home loan with a Big 4 bank, instead of shopping around for cheaper loan. This mistake is costing us big time.
Research from Mozo reveals that the difference between the cheapest home loan rates from the big banks and online lenders can be $18,011 on a $400,000 home loan over 30 years. Why the difference? Well for starters, online lenders have lower costs than bricks and mortar banks so they can pass these savings onto borrowers in the form of lower interest rates and fees.
Right now, you can compare online lenders on Mozo with rates starting from just 3.59% (variable and comparison rate). So, if you'd like to compare and see if you can save, read on for our run down of three of the top online loans on the market right now.
Top Online Home Loans
Promoted
loans.com.au Essentials Variable 80
3.64% variable rate (3.66% comparison rate*)
No ongoing fees plus free extra repayments and redraw facility
Mozo Experts Choice Best Low Cost Home Loan winner 2018
Our verdict
Aussie owned loans.com.au has been offering up simple, low rate home loans since 2011. This wallet-friendly option is the perfect no-fuss mortgage, with all the features you want and none you don’t - you can make unlimited extra repayments and make use of the redraw facility, without paying a premium for bells and whistles like an offset account. If you’re borrowing $2 million or less and have at least a 20% deposit saved up, the Essentials Variable 80 might be the mortgage for you.
Where do I get it? Head over to loans.com.au to find out more >>
Promoted
UBank UHomeLoan - Discount Offer
3.59% variable rate (3.59% comparison rate*)
No ongoing or upfront fees
Free extra repayments and redraw facility
Our verdict
As one of the top online banks in our database, UBank has our seal of approval when it comes to offering Aussie borrowers the best bang for their buck. Why? Well, for one, with no fees, a low interest rate and plenty of flexible payment options, the UHomeLoan Discount Offer is pretty hard to argue with. Plus, UBank is backed by NAB so you get all of the savings an online lender can offer, as well as the security of big bank backing. It’s available for loans of $200,000 or more, with a 20% deposit.
Where do I get it? Head over to UBank to find out >>
Promoted
ME Basic Home Loan
3.97% variable rate (3.99% comparison rate*)
No monthly fees (upfront fee applies)
Free extra repayments and redraw facility
Our verdict
Sometimes, simple is just what you need. The ME Basic Home Loan is a great value loan with a few key features to help you save even more while paying down your mortgage, like the ability to make extra repayments and choose either a weekly, fortnightly or monthly repayment schedule. ME is an online lender, but you can choose to meet with a home loan specialist at a time and place that suits you to help you get started. No drama, no fuss, just excellent value.
Where do I get it? Head over to ME to find out more >>
Information in this article sourced from news.com.au
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