New way to borrow takes Australia by storm

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As distrust of the nation's big banks and mortgage brokers swells amongst the wreckage of the banking royal commission, online lenders are emerging as real challengers in the home loan, business loan 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 buying a home, renovating your bathroom, planning an overseas holiday or managing your business expenses, 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, business loans and credit cards...

BANK BEATING HOME LOANS

Promoted

loans.com.au Smart Home Loan
  • 3.48% variable rate (3.50% comparison rate*)

  • No application or ongoing fees

  • Unlimited additional repayments and free redraws

  • Mozo Experts Choice Winner

Our verdict

Aussie owned loans.com.au has been taking on the banks with low rate online home loans since 2011, and the new Smart Home Loan is guaranteed to get borrowers switching. The 3.48% 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 make use of the redraw facility, 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

Athena Opening Offer Variable Home Loan - Refinance Only
  • 3.49% variable rate (3.51% comparison rate*)

  • No application or ongoing fees

  • Unlimited additional repayments and free redraws

Our verdict

The new Athena Variable Home Loan is a competitive refinance mortgage with one of the lowest rates around at 3.49% p.a. (3.51% p.a. comparison rate*) and no application or ongoing fees. But don’t think the value ends there, the loan also offers free extra repayments and a free redraw facility. Just keep in mind, if you’re a first home buyer, you won’t be able to get this loan as it’s only for refinancers, living in capital or major regional cities.

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

Promoted

State Custodians Low Rate Home Loan with Offset
  • 3.58% variable interest rate (3.59% comparison rate*)

  • No application or ongoing service fee

  • Free offset account, extra repayments and redraw

Our verdict

State Custodians is an award-winning Australian non-bank lender offering up low rate home loans with all the bells and whistles you'd normally find in a more expensive loan. How do they do this? Well, borrowers deal directly with State Custodians instead of going through a broker, and the savings are passed on to you in the form of lower rates and fees. With this loan you'll get a free 100% offset account, free redraw, extra repayments and split loan facility, plus an ultra competitive interest rate.

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

LOW RATE PERSONAL LOANS

Promoted

ING Unsecured Personal Loan
  • Fixed 8.99% interest rate (9.13% comparison rate*)

  • Free extra repayments and no exit fee

  • Mozo 2018 Expert’s Choice winner

Our verdict

If you’re after a loan that’s got no surprises or hidden nasties, then look no further than the ING Unsecured Personal Loan. With a fixed 8.99% interest rate (9.13% comparison rate*), you’ll always have the comfort in knowing your repayment amount. Throw in the option of making free extra repayments and a $0 exit fee and you’re looking at a 2018 Mozo Experts Choice Award winner for Unsecured Personal Loans.

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

SHARP BUSINESS LOANS

Promoted

Moula Business Loan
  • Interest rates start at just 1.00% per fortnight

  • No upfront or ongoing fees

  • Approval for up to $250,000 in 24 hours

Our verdict

Moula is dedicated to providing small and medium Aussie businesses with working capital through a unique platform that analyses business data to approve funding. The process is all online and hassle free - enter a few details and link up your accounting or banking data, and you could be approved for up to $250,000 within 24 hours. Plus, with no upfront, ongoing or break fees, what’s not to like? To be eligible, your business should have an ABN or ACN, been operating for at least 6 months, and a monthly turnover of $5,000.

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

REWARDING CREDIT CARDS

Promoted

Woolworths Everyday Platinum Credit Card
  • $0 first year annual fee ($49 thereafter)

  • $50 Woolies eGift Card when you spend $150 a month for 3 months

  • Multiple Mozo Experts Choice winner

Our verdict

This award-winning credit card from Woolworths is a great option for regular shoppers at Woolies, with a $50 eGift card when you spend $150 a month in store for the first 3 months, 3 points per $1 spent on Woolies branded products and 10% off your first Woolies shop on a selected weekend each month on offer. Points are converted into Everyday Money Shopping Cards to help you shave dollars off your grocery spend, plus with no annual fee in the first year, and a 19.99% interest rate this one’s definitely worth a look for savvy spenders.

Where do I get it? Head over to Woolworths 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 $150,000 over 25 years.

^ 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, or our personal loan comparison tool, our business loan comparison tool, or our credit card comparison tool to get the ball rolling

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