New way to borrow takes Australia by storm

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2021 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 new 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 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 2021...

  • 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. Winner of a Mozo Experts Choice Award for Best Low Cost Home Loan 2021,^ the Smart Booster Home Loan is designed to help you boost your savings and get mortgage-free faster. Flexible features include 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
  • New 2.19% p.a. variable and comparison rate*

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

  • Mozo Experts Choice Award 2021 - Best Low Cost Home Loan^

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 >>

Athena Celebrate Variable Home Loan
  • New 1.99% variable rate (1.99% 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 >>


NOW Finance No Fee Unsecured Personal Loan
NOW Finance
  • Unsecured rates from just 5.95% fixed (5.95% comparison rate*)

  • Extra repayments allowed

  • No upfront application fee

Our verdict

Enjoy the rewards of paying absolutely no fees on loans up to $50,000 with NOW Finance. This award winning unsecured personal loan comes together with no establishment fee, ongoing fees or early payout fee. What’s more, you can get your guaranteed, tailored interest rate in two minutes with no impact on your credit score.

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

OurMoneyMarket Low Rate Personal Loan
  • Unsecured rates from just 5.45% fixed (6.07% comparison rate^)

  • Free extra repayments and fee-free redraw facility

  • Quick and easy 100% online application

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. Mozo Experts Choice Unsecured Personal Loan 2021 award winner.^

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


Wisr Secured Car Loan
  • Fixed rates from just 4.74% (5.01% comparison rate*) for good credit borrowers

  • No monthly account fees and no early repayment fees

  • Fast approval between 24-48hrs

Our verdict

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 $50,000 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 Trade Zip Business Trade
Zip Business Trade
  • Apply online to get $1,000 to $3,000 fast and interest-free

  • $20 monthly account fee (waived if you have zero balance)

  • Fast and easy way to cover everyday and unexpected spending

Our verdict

If you’re looking for fast, interest-free finance to help cover your expenses, purchase inventory and grow your business, then Zip Business Trade could be just the solution you're after. Simply apply online for a Zip Business Trade buy now pay later account  and use it to cover everyday spending or unexpected costs up to $3,000. Minimum repayments are just $200 a month, there is no interest charged ever and the $20 monthly account fee is waived if you have zero balance.

Where do I get it? Head over to Zip Business Trade 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.

^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

^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, 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.

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