New way to borrow has big banks on notice

2022 is shaping up as the year of the online lender, with record low rates driving borrowers away from the big banks and a whopping six in ten borrowers in Australia now considering online lenders instead.

The big banks have long held the lion’s share of the lending market, but a recent Mozo survey of 1,266 borrowers* suggests that’s about to change. For those considering online lenders, cheap interest rates are seen as the biggest benefit, along with lower fees, easy application processes and faster loan approvals.

With interest rates from top online lenders like UBank, and Athena dropping to crazy new lows, the savings on offer are substantial. On a typical $400,000 home loan, borrowers could save $4,024 a year by going with an online lender over a big bank.

Whether you’re looking to save money by refinancing, buy a new property, or get an investment loan, there’s an online lender to suit. Here are the Mozo money editor's picks of some of the best right now...

BANK BEATING HOME LOANS - 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
Our verdict

Aussie owned has been taking on the banks with low rate online loans since 2011, and this headline-stealing home loan is really getting borrowers switching. Designed to help you boost your savings and get mortgage-free faster, the Smart Booster Home Loan is jam-packed with flexible features like 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.

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

UBank - UHomeLoan - Discount Offer
  • 2.09% p.a. variable and comparison rate*
  • No upfront or ongoing fees plus free extra repayments and redraw
  • Mozo Experts Choice Award 2022 - Best Split Home Loan^
Find out more
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, an ultra low interest rate and plenty of flexible payment options, the UHomeLoan Discount Offer is pretty hard to argue with. Plus, UBank is backed by NAB so you get all of the savings an online lender can offer, as well as the security of big bank backing. 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 >>

Macquarie - Offset Home Loan
  • Variable rates from just 2.14% (2.42% comparison rate*) - minimum 40% deposit
  • Up to 10 offset accounts per loan account available
  • Free extra repayments and redraw
Our verdict

Macquarie is all about using smart online technology to make the process of applying for, and managing, your home loan a breeze. This competitive Offset Home Loan lets you create up to 10 offset accounts to help pay off your home loan faster, with the added benefit of fee-free ATM access. You can also use Macquarie's state-of-the-art app to manage your accounts in one place. There's an annual package fee of $248 and this rate is available to borrowers with a minimum 70% LVR.

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

Athena - Celebrate Variable Home Loan
  • New 1.89% variable and comparison rate*
  • Zero Athena fees + free extra repayments and redraw
  • Available to borrowers with 40% deposit or equity
Our verdict

Online lender Athena is on a mission to save borrowers money on their mortgage, with some of the lowest rates in town. 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. Minimum LVR 60%.

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

Nano - Variable Home Loan
  • 1.99% variable and comparison rate* (refinancers only)
  • Free offset account + zero upfront or ongoing fees
  • Mozo Experts Choice Best New Home Loan of 2022^
Our verdict

Looking for a home loan that could save you thousands without having to sacrifice flexible features like an offset account and redraw facility? Look no further than this refinance home loan from competitive new digital lender Nano. This home loan ticks all the boxes, with an ultra low rate for refinancers with an 80% LVR plus unlimited additional repayments, free redraw, free 100% offset account, and a simple online application that makes it easy to apply.

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

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

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Want to check out other borrowing options? Head over to our home loan comparison table, our personal loans comparison tool or our car loan comparisons to get the ball rolling.

* To read more about Mozo's online lender research, read our detailed report here.

* 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.

** Initial monthly repayment figures are estimates only, based on the advertised rate, loan amount and term entered. 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 Loan Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.