Top online mortgage lenders in Australia

Niko Iliakis

16 Oct 2020

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Nowadays, more and more Australians are turning to online lenders when taking out a mortgage, and it’s proving to be a pretty wise financial decision. Speedy online applications, super efficient approval processes, and best of all, low interest rates — these are just some of the advantages that online lenders have over the major banks. 

But with the playing field as packed as it is, it can be difficult to know where to start. That’s where the Mozo Experts Choice Awards^ come in. Each year, our team of data wizards pore over hundreds of products to determine which ones offer the best value and the most useful features. Among this year’s winners, online lenders were quite well-represented.

So whether you’re taking your first steps up the property ladder or looking to refinance to a better loan, online lenders are well worth a look. We’ve compiled just a few 2020 Mozo Experts Choice Award^ winners below to help you in your search.

Promoted

loans.com.au Smart Home Loan 80
  • Competitive 2.48% p.a. variable rate (2.50% p.a. comparison rate*)

  • No ongoing fees

  • Redraw facility available

The Smart Home Loan’s features read like a laundry list of everything you’d want from a home loan. For starters, it picked up a win in the Low Cost Home Loan category in this year’s Mozo Experts Choice Awards^ for its competitive 2.48% p.a. variable rate (2.50% p.a. comparison rate*). You’ll also be able to split your loan between fixed and variable interest rates, pay it down faster without penalty, plus access a free redraw facility if you ever decide you need those funds back in your pocket. Just be sure to budget for the $220 valuation fee and $300 settlement fee.

Promoted

UBank UHomeLoan - Discount Offer
  • 2.49% variable interest rate (2.49% p.a. comparison rate*) for loans over $100,000

  • Free extra repayments and redraw facility

  • No annual fees

With a super low 2.49% variable interest rate (2.49% p.a. comparison rate*) on amounts above $100,000, the UHomeLoan Discount Offer was an obvious choice in this year’s Mozo Experts Choice Awards^. Homebuyers and refinancers will also appreciate the features on offer, such as the ability to make free extra repayments and access a redraw facility. Just keep in mind that the Discount Offer is only available on new variable rate UHomeLoan applications, so if you’ve already got a UHomeLoan you unfortunately won't be eligible.

Promoted

Homestar Star Essentials Home Loan
  • Variable rates from 2.29% p.a. (2.32% p.a. comparison rate*)

  • Free extra repayments and redraw facility

  • Offset account available

After passing on four of the last five RBA rate cuts in full, Homestar’s selection of home loans is looking sharper than ever. Take the Star Essentials Home Loan, whose stellar 2.29% p.a. variable rate (2.32% p.a. comparison rate*) puts it among the best value home loans in our database. You’ll be able to make free extra repayments, and if you ever want to retrieve those funds you can do so thanks to the free redraw facility. What’s more, it picked a win in this year’s Mozo Experts Choice Awards^ in the Low Cost home Loan category. Just keep an eye out for the $250 valuation fee and $265 legal fee.

Promoted

Well Home Loans Well Balanced
  • Variable rates from 2.17% variable rate (2.20% comparison rate*)

  • Offset account available for $10 per month

  • Free extra repayments and redraw facility

The Well Balanced Home Loan took out a staggering five Mozo Experts Choice Awards^ in 2020, thanks to a combination of excellent value and features. Variable rates start as low as 2.17% p.a. (2.20% comparison rate*) on loans with an LVR of 80%, there’s plenty of flexibility in how you pay, and for an extra $10 per month you can make use of an offset account. Just keep in mind there are a few fees that come with this one, namely the $250 application fee, $150 settlement fee, $385 legal fee, and $300 discharge fee.

Promoted

Athena Liberate Variable Home Loan
  • Variable rates from 2.34% p.a. (2.34 p.a. comparison rate*)

  • Free extra repayments and redraw facility

  • No application fee

Since it burst onto the scene last year, Athena Home Loans has scored plenty of goodwill with Aussies thanks to its low interest rates and habit of passing on RBA rate cuts in full. And with its new AcceleRates feature, borrowers have one more reason to get on board. Athena offers three price bands depending on your LVR, and automatically reduces your rate as you progress through each tier. Rates range from 2.34% p.a. (2.34% p.a. comparison rate*) to 2.44% p.a. (2.38% p.a. comparison rate*), there are zero application fees, and if you want to retrieve any extra funds, a free redraw facility is available.

*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.

Want to see how the above selection stack up against other offers on the market? Be sure to visit our home loan comparison page, where you’ll be able to filter your search by rate and type.

^Find out more about the Mozo Experts Choice Awards, including the full list of winners and how they were determined.

Mozo may receive advertising fees from the financial institutions, issuers of financial or credit products and third party advice providers that are shown on this page. These fees are based on a cost per click, cost per acquisition, or a fixed fee.