New way to borrow takes Australia by storm

Kirsty Lamont

24 Jun 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 loan is a great place to start. With so many different options for borrowing money out there on the market, there are some big savings available for those who are prepared to shop around.

And with so many challengers to the big banks popping up - from online lenders, to customer-owned institutions and credit unions - 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.

BANK BEATING HOME LOANS

Promoted

loans.com.au Smart Home Loan 80
  • 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

Our verdict

Popular online lender loans.com.au has been taking on the banks since 2011, and the Smart Home Loan is really getting borrowers switching. The low variable rate is a bona fide mortgage crusher, and they've done away with pesky fees as well. This no-fuss mortgage has all the features you want and none you don’t - you can make unlimited extra repayments and free redraws without paying a premium for bells and whistles like an offset account. If you’re borrowing $1 million or less and have at least a 20% deposit saved up, the Smart Home Loan really is a smart choice.

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

Promoted

UBank UHomeLoan - Discount Offer
  • 2.49% variable & comparison rate*

  • No upfront or ongoing fees plus free extra repayments and redraw

  • Mozo Experts Choice Award 2020 - Low Cost Home Loan

Our verdict

As one of Australia's top-rated online banks, UBank has our seal of approval when it comes to bringing Aussies the best value when it comes to their mortgage. Just how do they do this? With no fees, a super-low interest rate and plenty of flexible payment options to suit you, the UHomeLoan Discount Offer is pretty hard to miss. Plus, UBank is backed by NAB so you score all of the savings an online lender can offer, together with the security of a big bank behind it. This loan is 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 >>

Promoted

Homestar Star Essentials Home Loan
  • 2.29% p.a. variable rate (2.32% p.a. comparison rate*)

  • Free extra repayments and redraw facility

  • No monthly or ongoing account fees

Our verdict

One of the oldest non-bank lenders nationwide, Homestar has been providing affordable home loans since 2004. By dealing direct with borrowers and cutting out branches and brokers, Homestar can put more effort into providing better rates and creating more flexible loans. The Star Essentials Home Loan has one of the lowest variable rates in town plus a number of handy features - including unrestricted extra repayments and  free online redraws - to give owner occupiers plenty to get excited about. Plus, refinancers receive up to $1,500 cashback or upfront fees waived on purchases for applications received by 31 October, 2020.

PERSONAL LOANS

Promoted

OurMoneyMarket Low Rate Personal Loan
  • Unsecured rates from just 6.75% fixed (6.96% comparison rate^)

  • Free extra repayments and fee-free redraw

  • Quick and easy 100% online application

Our verdict

OurMoneyMarket offers low rate personal loans for borrowers with excellent credit, with a super fast online application process that guarantees you a decision in just 1 minute. This competitive unsecured loan lets you borrow between $2,000 and $50,000 at a simple fixed interest rate that can be repaid weekly, fortnightly or monthly over 1 to 7 years. There are no monthly account keeping fees, no exit fees and no early repayment fees. 

Where do I get it? Head over to OurMoneyMarket 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.

^The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are for the amounts and terms below, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. 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. ^Based on $10,000 over 3 years ^^Based on $30,000 over 5 years

Want to check out some other excellent borrowing options? Head over to our home loan comparison table, or our personal loan comparison tool or are our credit card comparison tool to get started.

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