New way to borrow takes Australia by storm
2022 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 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 loans.com.au, UBank and Athena 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 2022...
BANK BEATING HOME LOANS
loans.com.au - Variable Home Loan 70
- 3.10% variable rate (3.12% comparison rate*)
- Free extra repayments and redraw + optional offset account
- Available to borrowers with 70% LVR
Aussie owned loans.com.au has been taking on the banks with low rate online loans since 2011, and this new variable home loan is guaranteed to get borrowers switching. It's packed with useful features like free extra repayments, unlimited redraw, multiple loan split options and even an optional offset account for 0.10%. There are no ongoing fees and its available to borrowers with 70% LVR for loans of up to $2 million.
Where do I get it? Head over to loans.com.au to find out more >>
Unloan - Variable Home Loan
- 3.14% variable rate (3.06% comparison rate*)
- Zero upfront or ongoing fees
- Refinancers only
Unloan is a stellar new digital home loan offering built by CommBank. Owner-occupier refinancers receive a low 3.14% variable rate (3.06% 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 $3M. Minimum 80% LVR.
Where do I get it? Head over to Unloan to find out more >>
UBank - Neat Home Loan
- Variable rates from 3.64% (3.66% comparison rate*) - min 40% deposit
- Free extra repayments and redraw facility
- Fast and paperless online application process
As one of the top online banks in our database, UBank has our seal of approval when it comes to offering Aussie borrowers bang for their buck. This low cost variable home loan rewards borrowers with lower loan-to-value-ratios (LVRs) with its best rates, while also being light on fees. It's available for loans of up to $5 million.
Where do I get it? Head over to UBank to find out more >>
LOW RATE PERSONAL LOANS
OurMoneyMarket - Low Rate Personal Loan
- Unsecured rates from just 6.25% fixed (6.87% comparison rate*)
- Free extra repayments and fee-free redraw facility
- Quick and easy 100% online application
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.
Where do I get it? Head over to OurMoneyMarket to find out more >>
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^
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.
Where do I get it? Head over to NOW Finance to find out more >>
ONLINE CAR LOANS
Wisr - Secured Car Loan
- Fixed rates from just 6.34% p.a. (7.18% comparison rate*) for good credit borrowers
- No monthly account fees and no early repayment fees
- Fast approval between 24-48hrs
After a low rate car loan to get behind the wheel of your dream car sooner? With Wisr’s competitive fixed loan rates for borrowers with good credit, you'll have the freedom to borrow between $5,000 and $79,000 and get on the road faster than ever. There are no monthly account fees and no early repayment fees. Apply online and get approval within 24-48 hours.
Where do I get it? Head over to Wisr to find out more >>
Zip Business Capital
- Line of credit offering unsecured business funding up to $500K
- Interest charged only on what you draw down, with interest rate determined by your risk profile
- Repayment terms of between 6 months and 5 years
Zip Business has pioneered an online lending platform to help Australian businesses get the funding they need. This innovative system provides access to a line of credit that converts into an unsecured loan when you draw down. The online application process can be completed in just 5 minutes, and once approved you can access funds within 1 working day. To qualify, businesses must be GST registered with an annual turnover of $200K or more and 18+ months trading history.
Where do I get it? Head over to Zip Business Capital to find out more >>
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* 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.
*** 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
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