New way to borrow takes Australia by storm

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Distrust of the nation's big banks and mortgage brokers has swelled in the wake of the banking royal commission wreckage, and online lenders are emerging as real challengers in the home loan, credit card and personal lending markets.

There’s a lot to love about these digital go-getters, including speedy online applications, efficient approval processes and some killer low rates that can mean thousands of dollars in savings every year. Whether you’re looking to save money on your mortgage, buy a property, renovate your kitchen or pay down your credit card, there’s an online lender to suit that has what you’re looking for.

Take a peek at the Mozo money editor's pick of some of the best for home loans, personal loans and credit cards in 2020...

BANK BEATING HOME LOANS

Promoted

loans.com.au Smart Home Loan 80
  • 2.63% variable rate (2.65% comparison rate*)

  • Free extra repayments and redraw + no upfront or ongoing fees

  • Mozo Experts Choice Award 2020 - Low Cost Home Loan

Our verdict

Popular online lender loans.com.au has been taking on the banks since 2011, and the Smart Home Loan is really getting borrowers switching. The low variable rate is a bona fide mortgage crusher, and they've done away with pesky fees as well. This no-fuss mortgage has all the features you want and none you don’t - you can make unlimited extra repayments and free redraws without paying a premium for bells and whistles like an offset account. If you’re borrowing $1 million or less and have at least a 20% deposit saved up, the Smart Home Loan really is a smart choice.

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

Promoted

UBank UHomeLoan - Discount Offer
  • 2.59% variable & comparison rate

  • No upfront or ongoing fees plus free extra repayments and redraw

  • Mozo Experts Choice Award 2020 - Low Cost Home Loan

Our verdict

As one of Australia's top-rated online banks, UBank has our seal of approval when it comes to bringing Aussies the best value when it comes to their mortgage. Just how do they do this? With no fees, a super-low interest rate and plenty of flexible payment options to suit you, the UHomeLoan Discount Offer is pretty hard to miss. Plus, UBank is backed by NAB so you score all of the savings an online lender can offer, together with the security of a big bank behind it. This loan is 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 >>

Promoted

Homestar Star Essentials Home Loan
  • 2.39% p.a. variable rate (2.39% p.a. comparison rate*)

  • Free extra repayments and redraw facility

  • No monthly or ongoing account fees

Our verdict

One of the oldest non-bank lenders nationwide, Homestar has been providing affordable home loans since 2004. By dealing direct with borrowers and cutting out branches and brokers, Homestar can put more effort into providing better rates and creating more flexible loans. The Star Essentials Home Loan has one of the lowest variable rates in town plus a number of handy features - including unrestricted extra repayments and  free online redraws - to give owner occupiers plenty to get excited about. 

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

PERSONAL LOANS

Promoted

Wisr Unsecured Personal Loan
  • Fixed rates from 7.95% (8.78% comparison rate*)

  • No early repayment fee

  • No ongoing fees

Our verdict

An online-only lender focussed on making personal loans smarter and fairer, Wisr offers low personalised interest rates from just 7.95% for good credit borrowers, and there are no early repayment or hidden ongoing fees to worry about. Put all this together with a speedy application and approval process with access to funds on the same day for most borrowers, and it's clear that Wisr really is offering an innovative alternative to traditional bank loans.

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

Promoted

OurMoneyMarket Low Rate Personal Loan
  • Unsecured rates from just 8.00% fixed (8.21% comparison rate^)

  • Free extra repayments and fee-free redraw

  • Quick and easy 100% online application

Our verdict

OurMoneyMarket offers low rate personal loans for borrowers with excellent credit, with a super fast online application process that guarantees you a decision in just 1 minute. This competitive unsecured loan lets you borrow between $2,000 and $50,000 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 >>

CREDIT CARDS

Promoted

ING Orange One Credit Card
  • Low 11.99% purchase and cash advance rate

  • Pay $0 annual fee

  • 2019 Mozo Experts Choice Award

Our verdict

The 2019 Mozo Experts Choice Award winning ING Orange One credit card comes with an attractively low 11.99% p.a. purchase  and cash advance rate, no annual fees and up to 45 interest-free days on purchases. Value packed, this card comes with no annual fees and flexible instalment plans. Plus, enjoy no ING international transaction fees; simply deposit $1,000+ into your Orange Everyday transaction account each month and make 5+ eligible settled card purchases every month.

How do I apply for the card? Online of course!

*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.

^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 for the amounts and terms below, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. 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. ^Based on $10,000 over 3 years ^^Based on $30,000 over 5 years

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

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