Consumer confidence in rival lenders is surging in 2021, with a recent Mozo survey revealing that a whopping six in ten home borrowers are now considering alternative lenders over the big banks.*
And it's hardly a surprise, given rival lenders have taken the spotlight with gob-smackingly low variable and fixed rates that offer savvy borrowers the opportunity to save thousands on their home loan. On a typical $400,000 home loan for example, online lenders offer an average saving of $83,800 vs the big banks over 30 years.
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 smart banks - 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, take a look at these killer lenders giving the big banks a run for their money right now.
BANK BEATING HOME LOANS
loans.com.au Smart Booster Home Loan
1.85% discounted variable rate for 2 years
Rolls over to low ongoing 2.25% (2.21% comparison rate*)
Optional offset account plus free redraws and extra repayments
Aussie owned loans.com.au has been taking on the banks with low rate online loans since 2011, and this headline-stealing home loan is really getting borrowers switching. Winner of a Mozo Experts Choice Award for Best Low Cost Home Loan 2021,^ the Smart Booster Home Loan is designed to help you boost your savings and get mortgage-free faster. Flexible features include unlimited free extra repayments, free redraw and an optional offset account for 0.10%. There are no ongoing fees and its available to borrowers with a 20% deposit for loans of up to $1 million.
Macquarie is now Australia’s 5th largest home lender, and with offerings like this it’s not hard to see why. This competitive packaged home loan is loaded with features, including 100% offset (up to 10 free offset accounts per loan account), free extra repayments and online redraws, a split loan option and even repayment holidays for those times in life when you need to hit pause. There's a $248 annual package fee but no upfront fees to worry about.
Digital lender Nano has launched what it claims to be the world's fastest home loans, with a fully digital approval process that can see you approved in as little as 10 minutes. Refinancers will enjoy an ultra-low variable rate, zero Nano fees and a wide range of flexible features including unlimited additional repayments, free redraw and a free 100% offset account. Available for loans of up to $2,500,000. Minimum 75% LVR.
1.99% fixed rate for 2 years (3.07% comparison rate*)
Bonus $3,000 cashback for refinancers - Apply by 29th August
Mozo Experts Choice Fixed Rate Home Loan 2021^
BOQ is a favourite with borrowers looking to find value outside of the big four banks, and for good reason. The BOQ Discounted Fixed Home Loan lets you lock in a sub 2.00% rate for two years while still having the flexibility to pay down your mortgage faster with free extra repayments of up to $5,000 a year. Plus, refinancers who apply before the 29th of August can score a bonus $3,000 cashback. Minimum loan size $250,000, 80% LVR or less.
86 400 Own Home Loan
1.85% fixed rate for 3 years (2.59% comparison rate*)
$2,000 cashback bonus - Apply by 30 September
Free extra repayments up to $20,000 per fixed rate term
Australia's first Smart Bank 86 400 is offering one of the lowest 3-year fixed rates on the market, and the $2,000 cashback offer seals the deal. What's more, borrowers can split their loan into fixed and variable portions and access multiple offset accounts on the variable portion. There's also the ability to make free extra repayments up to $20,000 during the fixed term and enjoy free redraw. Available to borrowers with 20% deposit.
*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.