New way to borrow takes Australia by storm

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The nation's big banks are under fire again for failing to pass through the latest Reserve Bank rate cuts to variable borrowers, and with many Australians focussing on reducing household costs right now, online lenders are emerging as popular alternatives in the home loan and personal lending markets.

There’s a lot to love about these digital go-getters, including speedy online applications, efficient approval processes and some killer low rates that can mean thousands of dollars in savings every year. Whether you’re looking to save money on your mortgage, buy a property, renovate your kitchen or purchase a new car, there’s an online lender to suit that has what you’re looking for.

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.

BANK BEATING HOME LOANS

loans.com.au Smart Home Loan 80
loans.com.au
  • 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 >>

UBank UHomeLoan - Discount Offer
UBank
  • New 2.34% p.a. variable and 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 >>

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)

Our verdict

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 >>

PERSONAL LOANS

OurMoneyMarket Low Rate Personal Loan
OurMoneyMarket
  • 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 >>

Symple Loans Personal Loan
Symple Loans
  • Unsecured rates from just 5.75% (6.89% comparison rate^)

  • Borrow up to $50,000 with no early repayment fee

  • Get a personalised rate quote in just 2 minutes

Our verdict

Whether you want to pay off existing debt, tick that holiday off your bucket list or get on top of some bills, then new digital lender Symple Loans might be just the ticket. With a Symple Loans personalised variable rate loan you can borrow up to $50,000 and access ultra low rates that reward good credit borrowers. Plus, you can apply online in minutes, get a response in 60 seconds and have the money in your account the next business day. Symple makes it super simple!

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

CAR LOANS

Wisr Secured Car Loan
Wisr
  • 5.19% fixed interest rate (5.46% comparison rate*)

  • No early repayment or ongoing fees

  • Fast approval between 24-48hrs

After a low rate car loan to get behind the wheel of your dream car sooner? With Wisr’s competitive fixed loan rates for borrowers with good credit, you’ll have the freedom to borrow between $5,000 and $50,000 to get you on the road faster than ever. Complete with no early repayment fees and no ongoing fees, the Wisr Secured Car Loan could be just the loan you have been searching for.

Where do I get it? Head over to Wisr 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

^See information about the Mozo Experts Choice Home loans Awards

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 car loan comparison hub to get started.

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