Online lender boom: Aussies ditch banks for better rates
Online lenders are back with a roar in 2022, taking on the banks with super low rates and responding to consumer demand for faster, more efficient approval and funding processes for home loans, personal loans and even business loans.
A recent Mozo survey of 1,266 borrowers reveals that consumer confidence in big bank alternatives is surging, with a whopping six in ten home borrowers now considering online lenders instead.*
Cheaper interest rates and fees are the main attraction for those considering online lenders, and they’re on the money. Mozo’s experts crunched the numbers on online lenders versus the big 4 banks and the results are eye-opening: on a typical $400,000 home loan, online lenders offer an average saving of $83,800 over 30 years.
Whether you’re looking to save money on your mortgage, buy a property, renovate your kitchen or buy a new set of wheels, there’s an online lender to suit your needs. Here are the Mozo money editor's picks of some of the best in 2022...
TOP ONLINE HOME LOANS
loans.com.au - Smart Booster Home Loan
- New 2.10% 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
The details:
Aussie owned loans.com.au has been taking on the banks with low rate online home loans since 2011, and the Smart Booster Home Loan is really getting borrowers switching. This discounted variable loan is designed to help you boost your savings and get mortgage-free faster. Features include unlimited free extra repayments, free redraw and an optional offset account for 0.10%. There are no monthly or annual 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 loans.com.au to find out more >>
UBank - Neat Home Loan
- Variable rates from just 1.89% (1.90% comparison rate*) - min 40% deposit
- Free extra repayments and redraw facility
- Fast and paperless online application process
The details:
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 >>
Athena - Celebrate Variable Home Loan
- New 2.14% variable and comparison rate*
- Zero Athena fees + free offset account, extra repayments and redraw
- Available to borrowers with 40% deposit or equity
The details:
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 >>
LOW RATE PERSONAL LOANS
OurMoneyMarket - Low Rate Personal Loan
- Unsecured rates from just 5.45% fixed (6.07% comparison rate^)
- Free extra repayments and fee-free redraw
- Quick and easy 100% online application
The details:
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 >>
NOW Finance - No Fee Unsecured Personal Loan
- Unsecured rates from just 5.95% fixed (5.95% comparison rate*)
- Zero upfront fees or ongoing fees – over the life of your loan
- Mozo Experts Choice Winner - 2020 & 2021^
The details:
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 receive 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 4.49% p.a. (5.31% comparison rate*) for good credit borrowers
- No monthly account fees and no early repayment fees
- Fast approval between 24-48hrs
The details:
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 to worry about. Plus, if you apply online, you could get approval within 24-48 hours.
Where do I get it? Head over to Wisr to find out more >>
KILLER BUSINESS LOANS
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
The details:
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 >>
Calculate your home loan repayments
We can show you the monthly repayment amount for a range of loans
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 2021 Online Lenders Research Study, read our detailed report here.
* 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.
*** 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
Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.
While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.