5 rival lenders taking on the big banks and winning


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 right now.


loans.com.au Smart Booster Home Loan
  • 1.99% intro variable rate for 1 year

  • Rolls over to low ongoing 2.48% (2.47% comparison rate*)

  • Optional offset account plus free redraws and extra repayments

This headline stealing new home loan from popular online lender loans.com.au is designed to help you boost your savings, build your equity and own your own home, sooner. Flexible features include unlimited free extra repayments and redraw, multiple loan split options and an optional offset account for 0.10%. What's more, there are no ongoing monthly or annual fees. Available to borrowers with a 20% deposit for loans of up to $1 million.

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

Macquarie Basic Home Loan
  • 2.09% fixed rate for 2 years (2.56% comparison rate*)

  • Save on fees with $0 upfront and monthly fees

  • Free redraws and extra repayments

Macquarie is really making waves in the mortgage market, becoming Australia's 5th largest home loans lender in 2020. Proving that banks can offer great value, Macquarie is winning over borrowers with competitive rates, low fees and flexible ways to repay your loan faster, including the ability to split your loan and set different repayment types. To start the simple switching process, simply request a call on the Macquarie website.

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

UBank UHomeLoan - Discount Offer
  • New 2.34% p.a. variable and comparison rate*

  • Zero fees plus free extra repayments and redraw

  • Mozo Experts Choice Home Lender Bank of the Year 2020

UBank is the online bank created by NAB to disrupt borrowing and savings, and boy have they succeeded! Offering super competitive interest rates, zero upfront or ongoing fees and ultra-efficient online processes, it’s little wonder UBank has become such a success story. The UHomeLoan 2.34% variable and comparison rate* is available for loans of $200,000 or more with a minimum deposit or 20%.

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

Virgin Money Special Offer Reward Me Fixed Rate Home Loan
Virgin Money
  • 2.04% fixed rate for 2 years (2.79% comparison rate*)

  • Free extra repayments up to $5,000 each year

  • $3,000 cashback for refinancers (T&Cs apply)

Virgin Money is a favourite with borrowers looking to find value outside of the big four banks, and for good reason. The Reward Me Fixed Home Loan lets you take advantage of record low rates now without paying the price later on, as the low 2.79% p.a. comparison rate* means your loan will still be extremely competitive when the fixed period ends. Extra benefits include the freedom to make up to $10,000 a year in extra repayments and earn thousands of Velocity Points over the life of the loan, not to mention the $3,000 cashback offer for refinancers.

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

Suncorp Fixed Home Loan Special Offer
  • 1.89% fixed rate for 2 years (2.94% comparison rate*)

  • Free extra repayments up to $500/month during fixed term

  • Money Magazine Bank of the Year 2020, 2019, and 2018

Like the idea of a lender who has a familiar name and won’t make you compromise on rates? Well Suncorp’s Fixed Home Loan Special Offer could fit the bill, as it comes with a rock bottom 2-year fixed rate of 1.89% (2.94% comparison rate*) - one of the lowest in our database. While there is a $375 annual fee to weigh up, Suncorp will actually waive it for borrowers in the first year, plus the loan also allows extra repayments during the fixed term (free up to $500 per month). 

Where do I get it? Head over to Suncorp 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.

^See information about the Mozo Experts Choice Home loans Awards

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

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