The new online loan trend that could save you a fortune

Kelly Emmerton

22 May 2019


As distrust of the nation's big banks and mortgage brokers swells amongst the wreckage of the banking royal commission, online lenders are emerging as real challengers in the home loan and personal lending markets. 

There’s a lot to love about these digital dynamos, including fast online applications, super efficient approval processes and some killer low rates that can mean thousands of dollars in savings every year. 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.

Whether you’re buying a home, renovating your kitchen, planning an overseas trip or managing your business expenses, there’s an online lender to suit your needs. So check out the Mozo money editor's pick of some of the best for home loans, credit cards and business loans...


Promoted Smart Home Loan
  • 3.48% variable rate (3.50% comparison rate*)

  • No application or ongoing fees

  • Unlimited additional repayments and free redraws

  • Mozo Experts Choice Winner

Our verdict

Aussie owned has been taking on the banks with low rate online home loans since 2011, and the new Smart Home Loan is guaranteed to get borrowers switching. The 3.48% 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 make use of the redraw facility, 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 to find out more >>


Tic:Toc Variable Home Loan
  • 3.47% variable rate (3.48% comparison rate*)

  • $1,000 cash back limited time offer

  • 2019 Mozo Experts Choice Online Home Lender of the Year

Our verdict

With a low variable rate of 3.47% (3.48% comparison rate)* for owner occupiers and a mortgage approval process that only takes 22 minutes, the Variable Home Loan from Tic:Toc stands out in the online lending space and is  one of the major reasons why it took out the title of 2019 Mozo Experts Choice Online Home Lender of the Year. It features a handy offset account available on an opt-in basis, fee-free redraw facility and flexible repayments, and on top of this, when new borrowers take out a Tic:Toc home loan they’ll get their hands on a $1,000 cash back offer too.

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


ME Flexible Home Loan
  • 3.58% 3 year fixed rate (4.26% comparison rate*)

  • Extra repayments up to $30K during fixed rate period

  • Free redraw when you're ahead on your repayments

Our verdict

ME's lean, mean digital approach means it can offer low cost products that really deliver on value and benefits. The ME Flexible Home Loan is no exception, with fixed rates starting from 3.58% for 3 years and the option to split your loan into fixed and variable portions. You can even enjoy an offset account on the variable rate facility, make extra repayments up to $30K during the fixed rate period and access free redraw above $500 when you're ahead on your repayments.

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


UBank UHomeLoan - Discount Offer
  • 3.59% interest rate (3.59% comparison rate*)

  • No ongoing or upfront fees

  • Fee free extra repayments

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. UBank has no bank branches, focusing instead on offering great value loans plus an ultra efficient online application process with support from local home loan experts. 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 >>



Woolworths Everyday Platinum Credit Card
  • $0 first year annual fee ($49 thereafter)

  • $50 Woolies eGift Card when you spend $150 a month for 3 months

  • Multiple Mozo Experts Choice winner

Our verdict

This award-winning credit card from Woolworths is a great option for regular shoppers at Woolies, with a $50 eGift card when you spend $150 a month in store for the first 3 months, 3 points per $1 spent on Woolies branded products and 10% off your first Woolies shop on a selected weekend each month on offer. Points are converted into Everyday Money Shopping Cards to help you shave dollars off your grocery spend, plus with no annual fee in the first year, and a 19.99% interest rate this one’s definitely worth a look for savvy spenders.

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



Moula Business Loan
  • Interest rates start at just 1.00% per fortnight

  • No upfront or ongoing fees

  • Approval for up to $250,000 in 24 hours

Our verdict

Moula is dedicated to providing small and medium Aussie businesses with working capital through a unique platform that analyses business data to approve funding. The process is all online and hassle free - enter a few details and link up your accounting or banking data, and you could be approved for up to $250,000 within 24 hours. Plus, with no upfront, ongoing or break fees, what’s not to like? To be eligible, your business should have an ABN or ACN, been operating for at least 6 months, and a monthly turnover of $5,000. 

Where do I get it? Head over to Moula 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 $150,000 over 25 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.

Calculate your home loan repayments

We can show you the monthly repayment amount for a range of loans

I want to borrow
for years

Mozo may receive advertising fees from the financial institutions, issuers of financial or credit products and third party advice providers that are shown on this page. These fees are based on a cost per click, cost per acquisition, or a fixed fee.