New way to borrow takes Australia by storm

2023 is shaping up as the year of the online lender, with rising rates driving borrowers away from the big banks and a whopping six in ten borrowers in Australia now considering low cost loans from online lenders instead.

The big banks have long held the lion’s share of the lending market, but a  Mozo survey of 1,266 borrowers* suggests that’s changing. 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 Unloan and loans.com.au well below the average variable home loan rate, 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.

Whether you’re looking to save money on your mortgage, buy a property, renovate your kitchen or purchase a new car, there’s an online lender to suit. Here are the Mozo money editor's picks of some of the best for home loans, personal loans and business loans in 2023...

BANK BEATING HOME LOANS

Unloan - Variable Home Loan
  • 5.99% p.a. variable rate (5.90% p.a. comparison rate*)
  • Zero upfront or ongoing fees
  • Refinancers only

Our verdict

Unloan is a stellar new digital home loan offering built by CommBank. Owner-occupier refinancers receive a low 5.99% p.a. variable rate (5.90% p.a. comparison rate*) along with a loyalty discount that shaves 1 basis point off your interest every year for up to 30 years. Loan features include free extra repayments and redraw, and there are no pesky fees to pay. Available for refinance loans of up to $10M. Minimum 20% deposit. Awarded Best New Home Loan in the 2023 Mozo Experts Choice Awards.^

LOW RATE PERSONAL LOANS

OurMoneyMarket - Low Rate Personal Loan
  • Unsecured rates from just 6.57% fixed (7.19% comparison rate*)
  • Free extra repayments and fee-free redraw facility
  • Quick and easy 100% online application
Find out more
Our verdict

OurMoneyMarket offers low rate personal loans for borrowers with excellent credit, with a speedy online application process that guarantees you a decision in just 1 minute. You can borrow between $2,000 and $75,000 at a simple fixed interest rate that can be repaid weekly, fortnightly or monthly over 1 to 7 years. There are no monthly account keeping fees, no exit fees and no early repayment fees.

NOW Finance - No Fee Unsecured Personal Loan
  • Unsecured rates from 6.75% fixed (6.75% comparison rate*)
  • Zero upfront fees or ongoing fees – over the life of your loan
  • Mozo Experts Choice Unsecured Personal Loan Winner 2022^
Our verdict

NOW Finance is a popular choice with borrowers looking to avoid costly fees and high interest rates. This award-winning non-bank lender offers no-fee personal loans for up to $50,000, with super low rates for good credit borrowers. Apply online to get a personalised rate quote in 2 minutes without impacting your credit score, and NOW Finance offers funds as fast as 24-48 hours after you’re approved.

Harmoney - Unsecured Personal Loan
  • Unsecured rates from just 5.76% p.a. fixed (6.55% p.a. comparison rate*)
  • Funds in as little as 24 hours after loan term acceptance
  • Borrow up to $70,000 with no early repayment fees

Online lender Harmoney has made a name for itself with its super fast, low cost, 100% online personal loans. The Harmoney Unsecured Personal Loan offers extremely low rates for borrowers with great credit and makes borrowing easy with an efficient online application and 24 hour cash turnaround. Note that you'll need to earn above $30,000 a year to qualify.

ONLINE CAR LOANS

Loans.com.au - New Car Loan Special
  • Variable rates from 6.24% p.a. (7.36% p.a. comparison rate*)
  • Redraw facility up to $5,000
  • Fast online application process
Find out more

Get on the road with the New Car Loan Special from loans.com.au. This option for new and demo vehicles features a competitive 6.24% p.a. (7.36% p.a. comparison rate*), with early payout options. You can borrow between $5,000 and $150,000 with loan terms up to 7 years. Make sure to keep in mind the $400 one-off application fee and an $8 monthly service fee. Applications are 100% online, with assessments usually taking under 24 hours to complete.

OurMoneyMarket - Car Loan
  • Fixed rates from 6.57% p.a. (7.19% comparison rate*) for good credit borrowers
  • No monthly account fees and no early repayment fees
  • Fast online application

Looking for a low rate car loan to get behind the wheel of your dream car sooner? With OurMoneyMarket’s competitive fixed loan rates for borrowers with good credit, you'll be able to borrow between $5,000 and $75,000 and get on the road faster than ever. There are no monthly account fees and no early repayment fees to worry about. Plus, you can enjoy a quick and easy 100% online application.

BUSINESS LOANS

Bizcap Unsecured Business Loan
  • Borrow up to $2,000,000 unsecured
  • Easy online application with fast funding
  • No early repayment fees

Get business loan funding in as little as three hours with Bizcap on loans from $5,000 to $2,000,000. Bizcap offers cash flow friendly repayments and a super-simple online application process that takes minutes. $120,000 minimum annual turnover required.

Prospa Plus Business Loan
  • Unsecured loans from $150,000 - $300,000
  • Extra repayments available
  • 10 minute online application

Prospa know that different businesses have diverse needs and goals, which is why they designed their business loan with some serious flexibility. Borrowers can apply for unsecured business loans from $150,000 all the way up to $500,000, with loan terms from 3 to 36 months. On top of that, with speedy applications and the ability to make extra repayments, you won’t just be able to get the loan fast, you’ll be able to pay it off as quickly as you want.

Calculate your home loan repayments

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.
^ Find out more about the Mozo Experts Choice Personal loans Awards and Mozo Experts Choice Home loans Awards.

* 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. You can change the loan amount and term in the input boxes at the top of this table. 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.

*** WARNING: 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 calculated based on a loan of $30,000 for a term of 5 years or a loan of $10,000 for a term of 3 years as indicated, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. 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.

^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.