Top online mortgage lenders in Australia

Niko Iliakis

13 Jan 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 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 last 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 2019 Mozo Experts Choice Award^ winners below to make your search that much easier.

Promoted

loans.com.au Essentials Variable 90
  • Competitive 3.04% p.a. variable rate (3.06% 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 for Low Cost Home Loan in last year’s Mozo Experts Choice Awards^ for its competitive 3.04% p.a. variable rate (3.06% 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 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
  • 2.84% variable interest rate (2.84% p.a. comparison rate*) for loans over $200,000

  • Free extra repayments and redraw facility

  • No annual fees

A two-time 2019 Mozo Experts Choice Award^ winner for Low Cost Home Loan and Split Home Loan, the UHomeLoan Discount Offer comes with a super low 2.84% variable interest rate (2.84% p.a. comparison rate*) on amounts above $200,000. 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 2.74% p.a. (2.77% p.a. comparison rate*)

  • Free extra repayments and redraw facility

  • Offset account available

After passing on last year’s three RBA rate cuts in full, Homestar’s selection of home loans is looking sharper than ever. Take the Star Essentials Home Loan, whose stellar 2.74% p.a. variable rate (2.77% p.a. comparison rate*) puts it among the best value home loans in our database. Fees have been kept to a minimum, 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 up three wins in last year’s Mozo Experts Choice Awards^ for Low Cost Home Loan, Offset Home Loan, and Investor Home Loan. Just keep an eye out for the $248.08 valuation fee and $264 legal fee.

Promoted

Well Home Loans Well Balanced
  • Variable rates from 2.82% variable rate (2.86% 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 2019, including one for Best New Home Loan. One year later and it’s still as impressive as ever. Variable rates start as low as 2.82% p.a. (2.86% 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. But 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 Variable Home Loan
  • Variable rates from 2.84% p.a. (2.80% 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 among Aussies, thanks to its low interest rates and habit of passing on RBA rate cuts in full. The Variable Home Loan offer, available to homebuyers and refinancers, boasts a 2.84% p.a. variable rate (2.80% p.a. comparison rate*), zero application fees, and a free redraw facility. On top of that, it picked up a Mozo Expert Rated award for two exceptional features: 1. its customer guarantee, which ensures existing customers always get the same great rates as new ones, and 2. its loyalty bonus, which sees loyal customers rewarded with a 0.01% reduction on their interest rate each year for the first five years.

*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.

^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.