Australia's home loan market is in the midst of a massive shake up, with a tidal wave of new lenders taking on the big banks and breaking records left, right and centre as they fight it out to win borrowers over.
In recent weeks, smaller lenders have broken new records on the rate front by introducing home loan rates with a '1' in front. And it's not just rates where records are being broken. Industry data shows that growing numbers of Australians are taking out home loans with non-major lenders*, as banks lose out to innovative new players intent on changing the game on everything from the speed of your loan approval to the time it takes you to pay off your mortgage.
So who are these lending dynamos who are breaking new records and winning over savvy borrowers? Read on for our low down of the game changing lenders who are shaking up the mortgage market right now....
RECORD BREAKING RATE
loans.com.au Smart Booster 1 Year Discount Variable Home Loan
1.99% discount variable rate for 1 year
Rolls over to low ongoing 2.57% (2.55% comparison rate*)
No monthly fees plus unlimited free redraws and extra repayments
Known for its ultra competitive home loans, top online lender loans.com.au is making new waves as one of the first lenders in Australia to offer a home loan rate under 2.00%. Available to borrowers with a 20% deposit, this headline-stealing home loan is designed to help you boost your savings, build your equity and own your own home, sooner. Flexible features include free extra repayments and redraw, and there are no ongoing monthly or annual fees.
No ongoing fees plus free extra repayments and redraws
No monthly or ongoing account fees
HomeStar is the only lender in the Mozo comparison database to pass on all six of the RBA's most recent rate cuts in full, breaking records as Australia's most generous lender. In addition to an ultra low variable rate, the Star Essentials Home Loan also offers $0 ongoing fees plus a range of flexible features like unrestricted extra repayments and free online redraw. Plus for a limited time refinancers can get $1,500 cashback. Apply by 30 September.
Tic:Toc burst onto the Australian mortgage scene in 2017 with the world's first 'instant home loans', meaning you can have a fully approved home loan on the same day as you submit your application. What's more, Tic:Toc also offers award-winning low rates, zero application and ongoing fees, free extra repayments and an optional offset account for $10 a month. Switching your home loan can be done 100% online, and there's absolutely no paperwork (except for your home loan contract).
Introducing itself as the 'home loan wrecker', Athena is a game changing new online lender that wants customers to love them and leave them. Athena's mission is to encourage borrowers to pay off their home loan quickly, so that you can have a home not a loan. To help you do just that, the new Athena Variable Home Loan offers a super competitive rate, zero Athena fees, an interest rate discount each year for 5 years just for making your repayments on time, plus flexible features like free extra repayments and redraw.
*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.