Meet the online lenders saving Aussies millions
Kelly Emmerton | 17 Sep 2018
These days, Aussies have more choice than ever before when it comes to borrowing money, and as everyone searches for faster, easier ways to control their finances, online lenders are emerging as real challengers to the big banks.
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. 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, personal loans, credit cards and business loans...
HOME LOANS
Promoted
loans.com.au Essentials Variable 80
3.64% variable rate (comparison rate: 3.66%*)
No ongoing fees (upfront fees apply)
Flexible features including split rate option, free extra repayments and redraw facility
Mozo Experts Choice Best Low Cost Home Loan winner 2018
Our verdict
Aussie owned loans.com.au has been offering up simple, low rate home loans since 2011. This wallet-friendly option is the perfect no-fuss mortgage, with 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 $2 million or less and have at least a 20% deposit saved up, the Essentials Variable 80 might be the mortgage for you.
Where do I get it? Head over to loans.com.au to find out more >>
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ME Basic Home Loan
3.89% variable rate (3.91% comparison rate*)
No monthly fees (upfront fee applies)
Free extra repayments and redraw facility
Want a straightforward home loan without confusing extras or service fees? Take a look at the ME Basic Home Loan. It comes with a competitive low rate and a few handy features including free extra repayments to help you pay off your loan faster and save on interest. You can also tailor your loan repayment schedule to fit your budget, by choosing weekly, fortnightly or monthly loans.
Where do I get it? Head over to ME to find out more >>
Promoted
UBank UHomeLoan - Discount Offer
3.59% interest rate (comparison rate: 3.59%)
No ongoing or upfront fees
Fee free extra repayments
Our verdict
With no ongoing service or annual fees, a low interest rate and plenty of flexible payment options, the UHomeLoan Discount Offer is pretty hard to argue with. It also comes with a suite of great features like free extra repayments and a redraw facility, plus the option to choose monthly, fortnightly or weekly repayments. This low rate offer is available for amounts starting from $200,000 with a maximum LVR of 80%.
Where do I get it? Head over to UBank to find out more >>
Promoted
Virgin Money Reward Me Variable Rate Home Loan
3.68% variable rate (3.82% comparison rate*)
20,000 Velocity Points for every $100,000 borrowed
Full offset account
This full feature home loan comes with free extra repayments, a redraw facility and a 100% offset account to help you save more money, not to mention the chance to earn Velocity Frequent Flyer points upfront and throughout your home loan. With a competitive low rate and the option to choose weekly, fortnightly or monthly repayments, it’s a cinch to fit into your budget as well.
PERSONAL LOANS
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SocietyOne Unsecured Personal Loan - Excellent Credit
Fixed interest rates from 7.50% (comparison rate from 9.51%^)
No ongoing fees (upfront fees apply)
Excellent Credit Personal Loan Mozo Experts Choice winner 2017
Our verdict
Another peer-to-peer lender challenging the major banks, SocietyOne was established in 2012 and offers borrowers rock bottom rates based on their credit scores. So if your credit history is squeaky clean you might save a tonne by opting for this fixed rate offer. With no ongoing fees to worry about and no early repayment penalty, you can make full use of the extra repayments feature to pay your loan off quickly and save on interest.
Where do I get it? Head over to SocietyOne to find out more >>
CREDIT CARDS
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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 >>
BUSINESS LOANS
Promoted
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 >>
^ 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
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