Meet the rival lenders stealing bank borrowers in droves

Mozo

07 Jul 2021

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Aussie borrowers looking for lower rates, faster approval processes and flexible lending terms are deserting the big banks in earnest for more competitive smaller lenders, and a handful of non-bank and challenger lenders in particular stand out from the pack.

Aussie-owned loans.com.au is winning over fed-up bank borrowers in droves with a killer combination of ultra-low interest rates, hassle-free online applications and settlements within 30 days. Meanwhile mortgage challenger Athena is shaking up the market with a 1.99% variable rate home loan (1.99% comparison rate*) for refinancers with at least 40% equity in their property.

For borrowers not quite ready to make the move to a non-bank lender, rival banks Macquarie and HSBC are proving to be popular alternatives to the big 4 banks right now, thanks to recent rate cuts and a customer first focus that have made their home loans even more competitive.

"Many people are keen to leave the big banks and are surprised to discover how easy it is to refinance and the great deals that are out there with online lenders", says loans.com.au Managing Director Marie Mortimer. 

So if you're looking for a more flexible way to borrow at a low rate that could save you thousands, read on for our expert rundown of the killer home loans on offer from these digital dynamos….

TOP HOME LOANS

loans.com.au Smart Booster Home Loan
loans.com.au
  • 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

This low rate, low fee home loan could help you save thousands on your mortgage and is packed with useful features like unlimited free extra repayments and redraw, multiple loan split options and an optional offset account for 0.10%. With all this on offer the Smart Booster Home Loan really is a smart choice for borrowers who are looking to save money on interest and get mortgage free faster. You can borrow up to $1 million with this loan with a 20% deposit, and pay no ongoing monthly fees.

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

Macquarie Offset Home Loan
Macquarie
  • Variable rates from just 2.29% (2.57% comparison rate*) - minimum 40% deposit

  • 100% offset account, redraw facility and extra repayments

  • No upfront fees ($248 annual package fee applies)

Macquarie is now Australia’s 5th largest home lender, and with offerings like this it’s not hard to see why. The Macquarie Offset Home Loan now has even lower variable rates along with a range of flexible features such as 100% offset (up to 10 free offset accounts per loan account), free extra repayments and online redraw and a split account option. To start the simple application process, simply request a call on the Macquarie website. Available for loans of up to $5 million.

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

Athena Celebrate Variable Home Loan
Athena
  • New 1.99% variable rate (1.99% comparison rate*)

  • Zero Athena fees + free extra repayments and redraw

  • Available to borrowers with 40% deposit or equity

The Athena Celebrate Variable Home Loan boasts one of the lowest variable rates on the market for borrowers with at least 40% equity in their property, and charges zero fees to boot. What’s more, the automatic rate drop feature means the more you pay down your loan, the lower your rate becomes. It's available to refinancers and new borrowers purchasing in capital or major regional cities, with a minimum 40% deposit or equity.

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

Bank of Queensland Discount Fixed Rate
Bank of Queensland
  • 1.89% fixed rate for 2 years (3.05% 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 super low 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.

HSBC Discounted Home Value Loan
HSBC
  • New 2.19% variable rate (2.20% comparison rate*) for borrowers with 70% LVR

  • Enjoy free extra repayments, online redraw and no ongoing fees

  • $3,288 cashback for refinancers - Limited time only

HBSC is the first major bank in the Mozo comparison database to introduce a variable rate this low for borrowers with 30% deposit or equity. The loan comes with all of the features you'd expect from a bank, including free extra repayments, a free online redraw facility, an optional split account and a dedicated relationship manager to guide you through the application process. And if you're refinancing $250,000 or more to HSBC, you can enjoy a generous $3,288 cashback.

Where do I get it? Head over to HSBC 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.

^See information about the Mozo Experts Choice Home loans Awards

Want to compare more home loans? View the latest mortgage rates from over 80 lenders at Mozo's home loan comparison hub.

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