Mortgage brokers don't necessarily offer the best deals... here's why

Mozo

02 Oct 2020

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Thousands of Australians each year use mortgage brokers to refinance or get a new home loan, but did you know that some of the best value home loans on the market aren’t available through brokers?

Some of Australia’s most popular low-cost lenders like loans.com.au, UBank and Athena choose to bypass brokers and deal direct with borrowers. As they don’t pay broker commissions, you won’t find their home loans on broker panels.

Mozo Money Expert Kirsty Lamont says, “Brokers are a useful resource for those who need expert advice and assistance, but it’s important for borrowers to understand that you may be able to get a better home loan deal by shopping around yourself.”

So if you’d like to see what sort of deals you can access by comparing and applying online yourself, here are 5 killer home loans you won’t find by going through a mortgage broker.

5 Top Home Loans You Won’t Find Through a Broker

loans.com.au Smart Home Loan 80

loans.com.au

2.48% variable rate (2.50% comparison rate*)
$0 application or ongoing fees
Unlimited free extra repayments and redraw

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Expert verdict

This killer home loan from popular online lender, loans.com.au, could save you thousands. By cutting out branches and brokers, loans.com.au is able to pass on savings to customers in the form of lower rates and fees. The value doesn't stop there either, as this loan is packed with handy features like free extra repayments, unlimited free redraw and a split rate option. If you’re borrowing $1 million or less and have at least 20% deposit or equity, the Smart Home Loan really is a smart choice.

Where do I get it? Head over to loans.com.au to find out more >>

UBank UHomeLoan - Discount Offer

UBank

2.49% variable & comparison rate*
$0 upfront or ongoing fees plus free extra repayments and redraw
Mozo Experts Choice Low Cost Home Loan Winner 2020

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Expert verdict

With an ultra low interest rate and $0 application or ongoing fees, the UBank UHomeLoan is a great budget-friendly option for borrowers with 20% deposit that comes with the security of being backed by NAB. The simple online application process makes it fast and easy to apply direct and get approval in principle, and UBank's local home loan experts can help you along the way. Available for loans of $200,000 plus.

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

Homestar Star Essentials Home Loan

Homestar

2.29% p.a. variable rate (2.32% p.a. comparison rate*)
Free online redraws and unrestricted extra repayments
$1500 refinance cashback offer

Expert verdict

This online lending pioneer has been offering affordable home loans to Aussie borrowers since 2004, and the Star Essentials home loan is no exception. Not having to manage branches or brokers means Homestar can put more effort into providing better rates and creating more flexible loans. This stellar loan boasts one of the lowest rates on the market while still delivering great features like free online redraws, unrestricted extra repayments and multiple loan splits. Plus, refinancers receive up to $1,500 cashback for applications received by 30 November, 2020.

Athena Celebrate Variable Home Loan

Athena

2.34% variable & comparison rate* for borrowers with 60% LVR
Fast online application with no fees, free extra repayments + free redraw
Mozo Experts Choice Best New Home Loan 2020 Winner

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Expert verdict

New online mortgage challenger Athena is taking on the banks with a customer first approach and some of the best value mortgages on the market, helping borrowers around the country to save money and pay off their mortgages faster. Plus, to reward borrowers for paying down their home loan, Athena will now automatically lower your rate as you pay down your loan. Available to refinancers and home buyers buying an established property in a capital or major regional city with a 60% LVR.

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

UBank UHomeLoan

UBank

2.14% fixed rate for 3 year (2.41% comparison rate*)
Free extra repayments up to $20,000 p.a.
Fast and easy online application process

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Expert verdict

With a fast and streamlined application process, a sub 3.00% rate for 3 years and the freedom to make free additional repayments up to $20,000 a year, this flexible home loan could be a great choice for borrowers who want the security of fixed repayments as well as the flexibility to pay the loan off sooner. UBank is backed by NAB and has home loan experts on tap to help you through the online application process.

Where do I get it? Head over to UBank 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.

^See information about the Mozo Experts Choice Home loans Awards

Want to compare more home loans? View the latest mortgage rates from over 80 lenders at Mozo's home loan comparison hub.

Each year the comparison experts at Mozo rate Australia's best value home loans and other products for the Mozo Experts Choice Awards. Find out more here.