Borrowers dump banks after royal commission

The big banks are feeling the heat in the wake of the royal banking commission, with borrowers switching to online and challenger lenders and deserting the big four in droves. 

New research from Mozo shows that borrowers are more open to online lenders than ever, with the lower rates and fees on offer viewed as the biggest benefit of applying for a loan online. What's more, online lenders are taking advantage of the nation's disgust with the big banks by cutting rates and launching new ultra low rate loans guaranteed to get even more borrowers switching.

So if you're looking for a more flexible way to borrow at a low rate, check out these great value home loan and business loan options from rival lenders:

BANK BEATING HOME LOANS

loans.com.au - Smart Home Loan 80
  • 3.03% variable rate (3.05% comparison rate*)
  • No application or ongoing fees
  • Unlimited free extra repayments and redraw facility
Find out more
Our verdict

Loans.com.au is a popular online lender offering some of the lowest rates around. The brand new Smart Home Loan comes with a super sharp variable interest rate, no application or ongoing service fees and heaps of helpful features like free extra repayments, a redraw facility plus the option to split your loan between fixed and variable rates. It's no wonder loans.com.au is a perennial Mozo Experts Choice Award winner for best value home loans!

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

UBank - UHomeLoan - Discount Offer
  • 3.09% variable rate (3.09% comparison rate*)
  • $0 application fee or ongoing fees
  • Free extra repayments and redraw facility
Find out more
Our verdict

UBank is another online lender proving popular with Aussie borrowers for super low home loan rates, not to mention the fact that it's actually backed by NAB. The UHomeLoan Discount Offer comes with no annual or application fees plus flexible features like the option to split between fixed and variable rates, make free extra repayments, access a free redraw facility and choose weekly, fortnightly or monthly repayments to fit your budget.

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

Athena - Liberate Variable Home Loan
  • 3.09% variable rate (3.05% comparison rate*)
  • Free extra repayments and redraw facility
  • No upfront or ongoing fees
Our verdict

The new Athena Variable Home Loan is a competitive refinance mortgage with a 3.09% variable rate (3.05% comparison rate*) and no application, valuation or ongoing fees. But don’t think the value ends there, the loan also offers free extra repayments and a free redraw facility. Just keep in mind, if you’re a first home buyer, you won’t be able to get this loan as it’s only for refinancers, living in capital or major regional cities.

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

Homestar - Star Essentials Home Loan
  • 2.74% p.a. variable rate (2.77% p.a. comparison rate*)
  • Unrestricted extra repayments and free online redraw
  • No monthly or ongoing account fees
Find out more
Our verdict

Homestar has been providing affordable home loans since 2004 and has really stepped up the big bank challenge in a big way with the popular Star Essentials loan. With a number of handy features - including unrestricted extra repayments and free online redraws - plus an ultra low variable rate, this wallet friendly loan gives owner occupiers plenty to get excited about.

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

BANK BEATING BUSINESS LOANS

Prospa - Prospa Plus Business Loan
  • Fast same day approval and funding
  • Borrow $5,000 to $300,000 for terms of 3 to 12 months
  • Apply online in 10 minutes
  • No security required
Our verdict

Prospa is Australia’s leading online lender to small business, offering fast and flexible loans for any business purpose. This innovative Australian-owned lender focuses on removing the obstacles that have made it difficult for SMEs to access funding. A director’s guarantee is all that’s required as security, so there’s no need to put your house on the line. What’s more, Prospa assesses creditworthiness based on the health of the business, not the owner’s personal credit score.

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


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Want to check out some other excellent borrowing options? Head over to our home loan comparison table, or our business loan comparison tool to get started.


*https://www.afr.com/business/b...

* 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, loan amount and term entered. 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.