Online lender showdown: New breed takes on originals

Online mortgage lenders have been taking on the banks in Australia for more than a decade, bringing low-cost loans, efficiency, and flexibility to an industry sorely in need of a shake-up. And as the popularity of online lenders over traditional banks surges, so too has the number of online options available to savvy borrowers.

Most notably, CommBank has jumped onboard the online lending wave with the launch of Unloan, Australia’s first digital home loan that rewards refinancers with low variable rates, zero fees and a discount that increases every year up to 30 years.

But the original online lending pioneers aren’t sitting still either. Aussie-owned is on a mission to become the nation’s most popular online lender, and to prove it has just rolled out a new super-low refinance rate of 3.10% (3.12% comparison rate*) for borrowers with 70% LVR.

Another early pioneer of the space, UBank, recently merged with neo-bank 86 400 to create a new online lending powerhouse that is already making waves with its smart-tech and ultra-competitive home loans.

So if you're ready to reap the benefits of an online home loan, read on for our expert rundown of the top home loans on offer from the new breed vs the original pioneers of online home lending in Australia….


Unloan - Variable Home Loan
  • 4.29% variable rate (4.20% 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 4.29% variable rate (4.20% 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 >>

Yard - PAYG Home Loan
  • 3.29% variable rate (3.33% comparison rate*)
  • Free extra repayments and redraw
  • Optional 100% offset account
Find out more

Our verdict:
This value-packed home loan from digital lender Yard boasts one of the lowest variable rates on the market for borrowers with 20% deposit and has no ongoing fees. Borrowers can add on an optional offset account for $10 a month to help save on interest, and pay off the mortgage faster with free additional repayments. Available to borrowers with minimum 80% LVR, for loans of up to $3 million.

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

THE ORIGINALS - 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

The details:
Aussie owned has been taking on the banks with low rate online home loans since 2011, and the new Variable Home Loan 70 boasts one of the lowest rates around for borrowers with 30% deposit or equity. Flexible features include unlimited free extra repayments, free redraw and an optional offset account for 0.10%, plus there are no pesky ongoing fees to pay. Available for loans of up to $2 million.

Where do I get it? Head over to 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
Find out more

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 bang for their buck. Why? Well, for one, with ultra low rates, no ongoing fees and plenty of flexible payment options, the Neat Home Loan 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 up to $5 million.

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

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Want to check out other borrowing options? Head over to our home loan comparison table to get the ball rolling.

* 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.

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