Online lenders dominate 2017 Mozo Experts Choice Home Loan Awards
Mozo has announced the results of its annual Experts Choice Home Loan Awards this week, and found that nearly two-thirds of the Low Cost Award winners were online lenders.
The awards compared 504 home loans from 89 providers, and awarded the top 10% in each of the 8 categories. Categories included First Home Buyer, Offset Home Loan, Split Loan and two categories for Investors, and were chosen to reflect the different needs of home loan borrowers and which products best cater to them.
This year, Mozo found that online lenders took out more awards for great value mortgage products than in previous years, accounting for approximately 41% of the winners overall, up from just over 25% last year.
And it’s no wonder, when Mozo calculations showed that borrowers could save $3,184 each year, by switching from one of the big banks to an online lender.
Investors after variable rate loans and first home buyers were particularly spoiled for choice with online lenders, which increased their share of the awards by 40% and 30% respectively in each category.
Some of the major online bank winners included Non-Bank Home Loan Lender of the Year, Homestar, which took out awards across 5 of the 8 categories and Reduce Home Loans.
Despite the great value on offer, a Mozo study found that borrowers were sometimes reluctant to take out a home loan with an online lender, mainly because they didn’t know enough about them.
“Many online lenders can offer borrowers serious value, thanks to lower overhead costs than traditional banks. But it can be a bit daunting for borrowers when they feel they simply don’t know enough about online lenders to put their trust in them,” explained Mozo Director Kirsty Lamont.
RELATED: ScoMo’s super scheme for first home buyers divides critics
While Aussies were aware of the benefits of online lenders, just 27% said they’d be willing to take out a home loan online. 43% said they preferred to be able to discuss a mortgage face-to-face with an expert before committing.
“Consulting a specialist can be an important step in the home loan process, but when looking for the best possible value, it’s important that borrowers do their own research as well and consider all the options available to them,” said Lamont.
A good place to start searching for an excellent value home loan is with our Experts Choice Awards - we’ve done all the hard work for you! Find the full list of winners 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.
^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.