Mortgage shake up! Meet the lenders taking on the big banks in 2021

18 Sep 2021

Aussie borrowers looking for lower rates, faster approval processes and flexible lending terms are deserting the big banks in earnest for more competitive lenders. But with so many different options available, which rival lenders really stand out from the pack?

Aussie-owned loans.com.au is winning over fed-up bank borrowers in droves with ultra-low interest rates, hassle-free online applications and settlements within 30 days. Meanwhile digital lender Athena is shaking up the market with zero fees and refinance rates below 2.00%.

For borrowers not quite ready to make the move to a non-bank lender, rival bank Macquarie is proving a popular alternative to the big 4, thanks to recent rate cuts and a customer first focus that makes its 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 top home loans on offer from these digital dynamos….

MORTGAGE CRUSHING 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

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Popular online lender loans.com.au has been taking on the banks since 2011, and the Smart Booster is really getting borrowers switching. This headline-stealing home loan is designed to help you boost your savings, build your equity and own your own home, sooner. Flexible features include unlimited free extra repayments and redraw, multiple loan split options and an optional offset account for 0.10%. What's more, there are no ongoing monthly or annual fees. Available to borrowers with a 20% deposit for loans of up to $1 million.

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

Macquarie Offset Home Loan

Variable rates from just 2.14% (2.42% comparison rate*) - minimum 40% deposit
100% offset account, redraw facility and extra repayments
No upfront fees ($248 annual package fee applies)

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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

1.99% variable and comparison rate*
Free extra repayments and redraw facility
No annual or application fees

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Online lender, Athena, is on a mission to save borrowers money on their mortgage, with a customer first commitment and some of the lowest rates around. The fee-free Athena Celebrate Variable Home Loan offers the same great rates to both new and existing borrowers, and as an added reward your rate will drop lower as you pay down your home loan. It's available to refinancers and new borrowers purchasing in capital or major regional cities. 40% deposit required.

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

HSBC Discounted Home Value Loan

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

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HBSC became the first major bank in the Mozo comparison database to introduce a variable home loan 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 check out other borrowing options? Head over to our home loan comparison table to get the ball rolling.