Online lender boom: Aussies ditch banks for better rates

Online lenders boom but how much can borrowers really save content

Online lenders are back with a roar in 2021, taking on the banks with record low rates and 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 2021...

TOP ONLINE HOME LOANS Smart Booster Home Loan
  • 1.85% discounted variable rate for 2 years

  • Rolls over to low ongoing 2.25% (2.21% comparison rate*)

  • Best Low Cost Home Loan: Mozo Experts Choice Awards 2021^

The details:

Aussie owned 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 headline-stealing 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 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 to find out more >>

UBank UHomeLoan
  • 1.85% fixed rate for 3 years (2.24% comparison rate*)

  • No ongoing fees + free extra repayments up to $20,000

  • Mozo Experts Choice Award 2021 - Best Fixed Rate Home Loan^

The details:

As one of Australia's top-rated online banks, UBank has our seal of approval when it comes to bringing Aussies top value on their home loans. Borrowers looking to lock in while rates are low can snap up this stellar 3-year fixed home loan now. It's available to owner occupiers with 20% deposit for loans of up to $2 million, and while there is an initial $395 application fee there are no other fees to worry about. UBank even lets customers make extra repayments towards the loan of up to $20k for the fixed term period for free!

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

Athena Celebrate Variable Home Loan
  • 1.99% variable and comparison rate*

  • Zero Athena fees + free 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 >>


Symple Loans Personal Loan
Symple Loans
  • Unsecured rates from just 5.75% p.a. (6.47% p.a. comparison rate^)

  • Apply in 7 minutes and get funding in 24 hours

  • Earn up to 50,000 Qantas points

The details:

Symple offers low rate personal loans for borrowers with excellent credit, with a super fast online application process that guarantees you a response in just 60 seconds. This competitive unsecured loan lets you borrow up to 50,000 at a low variable rate that can be repaid weekly, fortnightly or monthly over 1 to 7 years. There are no exit or early repayment fees and as an added bonus you'll earn 1 Qantas point for every $1 borrowed up to 50,000 points.

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

Harmoney Unsecured Personal Loan
  • Unsecured rates from just 5.35% p.a. fixed (6.14% p.a. comparison rate^)

  • No ongoing fees

  • Loan top up feature

The details:

If you’re in the market for a low interest rate, no ongoing fees and the flexibility to make early repayments, then the Unsecured Personal Loan from Harmoney could be the perfect match for you. Rewarding creditworthy borrowers with competitive rates, Harmoney makes borrowing easy and super-fast with an efficient online application and 24 hour cash turnaround.

Where do I get it? Head over to Harmoney 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

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 $50,000 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 >>

*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 2021 Online Lenders Research Study, read our detailed report here.

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