Online lender boom: Aussies ditch banks for better rates

Online lenders are back with a roar, taking on the banks with competitive 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 2023...


Unloan - Variable Home Loan
  • 5.74% p.a. variable rate (5.65% p.a. comparison rate*)
  • Zero upfront or ongoing fees
  • Refinancers only

The details

Unloan is a stellar new digital home loan offering built by CommBank. Owner-occupier refinancers receive a low 5.74% p.a. variable rate (5.65% p.a. 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 $10M. Minimum 20% deposit. Awarded Best New Home Loan in the 2023 Mozo Experts Choice Awards.^

Up Variable Home Loan
  • 5.90% p.a. variable rate (5.90% p.a. comparison rate*)
  • No application, monthly, annual, redraw, or discharge fees
  • Free offset accounts available

With a competitive variable interest rate of 5.90% p.a. (5.90% p.a. comparison rate*), Up offers users a low-fee home loan, all accessed through their 2023 Mozo Experts Choice Award-winning app. This eye-catching home loan only needs a 10% deposit and offers free unlimited repayments with a redraw facility, and up to 50 offset accounts (T&Cs apply). They’ll also cover the first $400 of your property valuation. Up home loans are only available to owner-occupiers buying or refinancing in major Australian cities. Up is 100% owned by Bendigo Bank.

Mortgage Simplifier
  • 6.14% p.a. variable rate (6.43% p.a. comparison*)
  • Free extra repayments, no monthly or annual fees
  • Only 20% deposit required

Winner of Australia’s Best Bank title in the Mozo Experts Choice Awards^, ING is known for its great value products and the Mortgage Simplifier Home Loan is no exception. Not only does this home loan come with top features to help you pay off your home loan faster like a low variable rate, no annual or monthly fees, you’ll also have the freedom to make extra repayments or redraws, which are also free. Available to borrowers with at least a 20% deposit or equity (T&Cs apply).


OurMoneyMarket - Low Rate Personal Loan
  • Unsecured rates from just 6.57% fixed (7.19% 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.

NOW Finance - No Fee Unsecured Personal Loan
  • Unsecured rates from just 6.75% fixed (6.75% comparison rate*)
  • Zero upfront fees or ongoing fees – over the life of your loan
  • Mozo Experts Choice Unsecured Personal Loan Winner 2022^
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 NOW Finance offers funds as fast as 24-48 hours after you’re approved.

Harmoney - Unsecured Personal Loan
  • Unsecured rates from just 5.76% p.a. fixed (6.55% p.a. comparison rate*)
  • Funds in as little as 24 hours after loan term acceptance
  • Borrow up to $70,000 with no early repayment fees

The details:
Online lender Harmoney has made a name for itself with its super fast, low cost, 100% online personal loans. The Harmoney Unsecured Personal Loan offers extremely low rates for borrowers with great credit and makes borrowing easy with an efficient online application and 24 hour cash turnaround. Note that you'll need to earn above $30,000 a year to qualify.

ONLINE CAR LOANS - New Car Loan Special
  • Variable rates from 6.24% p.a. (7.36% p.a. comparison rate*)
  • Redraw facility up to $5,000
  • Fast online application process

Get on the road with the New Car Loan Special from This option for new and demo vehicles features a competitive 6.24% p.a. (7.36% p.a. comparison rate*), with early payout options. You can borrow between $5,000 and $150,000 with loan terms up to 7 years. Make sure to keep in mind the $400 one-off application fee and an $8 monthly service fee. Applications are 100% online, with assessments usually taking under 24 hours to complete.

OurMoneyMarket - Car Loan
  • Fixed rates from 6.57% p.a. (7.19% comparison rate*) for good credit borrowers
  • No monthly account fees and no early repayment fees
  • Fast online application

Looking for a low rate car loan to get behind the wheel of your dream car sooner? With OurMoneyMarket’s competitive fixed loan rates for borrowers with good credit, you'll be able to borrow between $5,000 and $75,000 and get on the road faster than ever. There are no monthly account fees and no early repayment fees to worry about. Plus, you can enjoy a quick and easy 100% online application.

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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.