Four in five home borrowers make $18,000 mistake


22 Aug 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
  • 3.03% variable rate (3.05% 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 >>


Tic:Toc Variable Home Loan
  • 2.99% variable rate (3.00% comparison rate*)

  • No application, valuation or settlement fees

  • Online Home Lender of the Year 2019 - Mozo Experts Choice Awards

Our verdict

This award-winning home loan from mortgage challenger Tic:Toc could save you thousands, with a super low rate, no upfront or ongoing fees, fee-free redraws and extra repayments. Plus, you can also get an optional offset account for just $10 a month, to hep you save even more and pay off your home loan faster. What's more, Tic:Toc's 100% online application and assessment process can see you get your loan contract on the same day you apply.

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


Well Home Loans Well Balanced
  • 2.97% variable rate (3.00% comparison rate*)

  • Free online redraw and no valuation fee

  • Best new home loan winner - Mozo Experts Choice Awards 2019

Our verdict

Taking out the Mozo Experts Choice Award for Best New Home Loan in 2019, the Well Balanced Home Loan delivers an incredibly  low rate along with a range of great features including free online redraw and extra repayments, internet banking and the option of an offset account with a debit EFTPOS card for $10 a month. If that's not enough, for a limited time Well Home Loans is sweetening the deal even further by eliminating valuation and settlement fees for loans of $200,000 or more.

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


UBank UHomeLoan - Discount Offer
  • 3.09% variable rate (3.09% 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 more >>


Athena Variable Home Loan
  • 3.09% variable rate (3.05% comparison rate*)

  • Free extra repayments and redraw facility

  • No upfront or ongoing fees

Our verdict

Athena aims to shake up mortgages in Australia and its new Variable Home Loan is a bona fide bank beater. The value-packed refinance mortgage features a super low variable rate and no application, valuation or ongoing fees. But the great features don’t end there, the loan also offers free extra repayments and a free redraw facility. Just keep in mind, if you’re a first home buyer, you won’t be able to get this loan as it’s only for refinancers, living in capital or major regional cities.

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

*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.

Information in this article sourced from

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