Four in five home borrowers make $18,000 mistake


14 May 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 below 3.50%. So, if you'd like to compare and see if you can save, read on for our run down on five of the top online loans on the market right now.

Top Online Home Loans

Promoted Smart Home Loan
  • 3.48% variable rate (3.50% comparison rate*)

  • Unlimited free extra repayments and redraw facility

  • No application or ongoing fees

Our verdict

Aussie owned 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 $1million or less and have at least a 20% deposit saved up, the Smart Home Loan might be the mortgage for you.

Where do I get it? Head over to to find out more >>


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 >>


Tic:Toc Variable Home Loan
  • 3.59% variable rate (3.55% comparison rate*)

  • No application, valuation or settlement fees

  • $1,000 cashback when you settle

Winner of the Mozo Experts Choice Online Lender of 2019 award, Tic:Toc is transforming the home loans process with a super streamlined 100% online approval process and simple, great value home loans. The Tic:Toc Variable Home Loan offers all of the features you want (think ultra low rate, free extra repayments and redraw plus an optional offset account) and none you don't like annoying fees. Plus for a limited time you'll get $1,000 cashback when you settle.

Where do I get it? Head over to Tic:Toc to find out more >>


ME Flexible Home Loan
  • 3.74% fixed 2 year rate (4.30% comparison rate*)

  • Option to split your loan into fixed and variable

  • Offset available on the variable rate facility

Our verdict

With the ME Flexible Fixed Home Loan, you get the security of locking in a great rate for 2 years along with flexible features like free extra repayments up to $30,000 during the fixed rate period, a split rate option and a free offset account on the variable rate facility. 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. Available for loans between $40K and $699K with at least 20% deposit.

Where do I get it? Head over to ME to find out more >>


Virgin Money Reward Me Variable Rate Home Loan
  • 3.69% variable rate (3.83% comparison rate*)

  • Free 100% offset account, extra repayments and redraw

  • Earn 20,000 Velocity Points for every $100,000 borrowed

Our verdict

Looking for a full feature home loan with a competitive rate to boot? With a 100% offset account, redraw facility and the ability to make extra repayments, Virgin Money’s Reward Me Variable Rate Home Loan might just be the match for you. What's more, you'll also score 20,000 Velocity Points for every $100,000 you borrow at the start of your loan, plus an extra 1,000 Velocity Points every month of your loan and 30,000 Velocity Points every 3 years when your loan balance remains above $50,000.

*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.

Information in this article sourced from

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