5 rival lenders taking on the big banks in 2020

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Many Australians are focussing on reducing household costs right now, and saving on interest repayments by switching to a better value home is a great place to start. Since Covid-19 hit our shores, the number of Aussies refinancing their mortgage has spiked as rival lenders cut rates to woo borrowers from the major banks, with some genuinely big savings now available for those who are prepared to shop around.

The big banks might be easy targets when it comes to offering better value, but rival lenders are also winning customers over with more efficient approval processes and fast online applications. And with so many challengers to the big banks popping up - from challenger banks to online lenders and customer-owned institutions - there’s more reason than ever before to spend some time comparing your options to get the best value around.

So if you’re over high interest rates and steep fees, check out these killer lenders giving the big banks a run for their money in 2020.

MORTGAGE CRUSHING HOME LOANS

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loans.com.au Smart Home Loan 80
  • Low 2.48% variable rate (2.50% p.a. comparison rate*)

  • Free extra repayments and redraw + no upfront or ongoing fees

  • Mozo Experts Choice Award 2020 - Low Cost Home Loan

Popular online lender loans.com.au not only offers up an ultra low rate with its Smart Home Loan, but you can also make use of a few handy features, including unlimited free extra repayments, a redraw facility and the chance to split your loan between fixed and variable rates. Its no wonder loans.com.au is a perennial Mozo Experts Choice Awards winner for Best Low Cost Home Loan. You can borrow up to $1 million with this loan, and pay no annual or application fee.

Where do I get it? Head over to loans.com.au to find out more >>

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Macquarie Offset Home Loan
  • 2.54% variable rate (2.81% comparison rate*)

  • Up to 10 offset accounts per loan

  • Free redraws and extra repayments

If you’re over the big banks but not quite ready to make the jump to a digital lender, then Macquarie could be the home loan solution you’re after. Proving that banks can offer great value, Macquarie is winning over borrowers with this Offset home loan. Featuring a great low rate, the ability to link up to 10 offset accounts to repay your loan faster, as well as free redraws and extra repayments, this is one home loan to have on your radar. Requires 30% deposit.

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

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HSBC 2 Year Fixed Rate Home Loan
  • 2.09% fixed rate for 2 years (2.98% comparison rate*)

  • Free extra repayments (up to $10,000 p.a.)

  • Mozo Experts Choice Fixed Home Loan 2020

If you like the idea of being rewarded for locking in an ultra low rate with a trusted bank lender, this fixed home loan from HSBC ticks all the right boxes. With one of the lowest fixed rates in the Mozo database, this home loan gives you the freedom to make extra repayments up to $10,000 per year with the added bonus of zero upfront or ongoing fees. Together with being crowned winner of the Mozo Experts Choice Award for Fixed Rate Home Loans, this is one contender that could be for you.

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

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Homestar Star Essentials Home Loan
  • 2.29% fixed rate for 2 years (3.28% comparison rate*)

  • Free extra repayments - up to $500 each month

  • $2,000 cashback bonus - limited time offer

This online lending pioneer has been offering affordable home loans to Aussie borrowers since 2004, and the Star Essentials home loan is no exception. Not having to manage branches or brokers means Homestar can put more effort into providing better rates and creating more flexible loans. This stellar loan boasts one of the lowest rates on the market while still delivering great features like free online redraws, unrestricted extra repayments and multiple loan splits. Plus, refinancers receive up to $1,500 cashback or upfront fees waived on purchases for applications received by 31 October, 2020.

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AMP Bank Professional Package Variable Rate Home Loan
  • 2.59% variable rate (3.00% comparison rate*)

  • Free extra repayments and redraw facility

  • 100% offset account

The AMP Bank Variable Rate Home Loan (Professional Package) has plenty of features to make your home loan journey as simple as can be. Not only does it come with an offset account and free redraw facility, you can make extra repayments without any fees. Together with the option to split your loan with up to 10 sub accounts, this is definitely one home loan to have on your radar.

Where do I get it? Head over to AMP 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.

Want to check out other borrowing options? Head over to our home loan comparison table to get the ball rolling.

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