Aussie borrowers ditch banks as NAB hikes rates

Kelly Emmerton   |   10 Sep 2018

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Two months after ANZ, CommBank and Westpac hiked home loan rates, NAB has joined the party and raised rates. While NAB's rate increase will only apply to new borrowers, the move makes the Big 4 banks' home loan rates even less competitive against smaller rivals who are already seeing a surge in market share as borrowers consider their options and turn to cheaper lenders.

It's hardly surprising that so many Aussies are turning to rival and online lenders, as the Mozo database reveals that 1 in 2 home loans with a rate under 4% are now offered by online lenders. And when it comes to personal loans, online lenders are really breaking the mould, offering up flexible ways for Aussies to borrow at great rates.

So if you’d rather keep your hard earned money in your own pocket, check out these great value online home loan and personal loan options:

TOP ONLINE LENDERS SHAKING UP HOME LOANS

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loans.com.au Essentials Variable 80
  • 3.64% variable rate (3.66% comparison rate*)

  • No application or ongoing fees (settlement & valuation fees apply)

  • Free extra repayments and redraw facility

Loans.com.au is a popular online lender offering some of the lowest rates around. The Essentials Variable 80 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 and the option to split your loan between fixed and variable rates. Plus, this loan took out a 2018 Mozo Experts Choice Award for Best Low Cost Home Loan - what’s not to like?

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

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UBank UHomeLoan - Discount Offer
  • 3.59% variable rate (3.59% comparison rate*)

  • $0 application fee or ongoing fees

  • Free extra repayments and redraw facility

Want a home loan from the best online bank in Australia? Well, our Experts named UBank Australia Best Online Bank of 2017, so take a look at the UHomeLoan Discount Offer. This loan delivers a low variable rate along with 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 >>

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ME Flexible Home Loan
  • 3.69% variable interest rate (4.12% comparison rate*)

  • $0 application fee (yearly service fee applies)

  • Free extra repayments, redraw facility and offset account

Online lender ME is committed to transparency, fairness and value, which shows in its Flexible Home Loan Member Package. With a low interest rate and no upfront fees, this is a great option for anyone with a 20% deposit who is comfortable managing their loan from their lounge room. It comes with a suite of money saving features, including the option to make free extra repayments, use a redraw facility, take a repayment holiday, split your loan between fixed and variable rates, and park your savings in an offset account

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

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Virgin Money Reward Me Variable Rate Home Loan
  • 3.68% variable interest rates (3.82% comparison rate)

  • Earn 20,000 Velocity Points for every $100,000 borrowed

  • Free extra repayments and offset facility

Want an online home loan that can also help you bag a heap of rewards points? With the Virgin Money Rewards Me home loan, not only will you get a competitive loan with a bunch of great features, you’ll also be able to earn 20,000 Velocity Points for every $100,000 you borrow at the start of your loan, plus an extra 1,000 Velocity Points every month of your loan and 30,000 Velocity Points every 3 years when your loan balance remains over $50,000. That’s what we call a sweet deal!

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State Custodians Low Rate Home Loan with Offset
  • 3.68% variable interest rate (comparison rate: 3.69%*)

  • No application or ongoing service fee (valuation fee applies)

  • Free extra repayments, redraw facility and offset account

Looking for a home loan jam packed with plenty of money saving features? The Low Rate Loan with Offset from State Custodians not only comes with a very competitive interest rate and very few fees, but you’ll also have access to a host of features including free extra repayments, a redraw facility, the option to split your rate between fixed and variable and, of course, a full offset account.

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

POPULAR ONLINE PERSONAL LOANS

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SocietyOne Unsecured Personal Loan - Excellent Credit
  • Fixed rates from 7.50% (9.51% comparison rate^)

  • No ongoing service fee (upfront fee applies)

  • Borrow up to $50,000

Peer-to-peer lender SocietyOne allows you to fund your spending goals by tapping into an online marketplace of investors. You can snag competitive fixed rates as low as 7.50% (9.51% comparison rate^) on a two to three year loan, borrowing up to $50,000. There’s also the option to make free extra repayments, and choose between fortnightly or monthly repayments to suit your budget. Keep in mind there is an application fee which can vary depending on your credit score.

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

COMPETITIVE ONLINE BUSINESS LOANS

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Moula Business Loan
  • Interest rates from 1.00% per fortnight

  • Approval in 24 hours for loans up to $250,000

  • $0 upfront or ongoing fees

With an all online and hassle free application process, Moula is set up to help Aussie businesses get the funding they need, when they need it. No fees and competitive interest on this loan keeps your business costs low and if you’re applying for a loan up to $250,000 you can be approved in as little as 24 hours. Just keep in mind that to be eligible for this one, you need to have been operating for at least 6 months, have an ABN or ACN, and turnover at least $5,000 each month.

Where do I get it? Head over to Moula 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 $150,000 over 25 years.

^ The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are for the amounts and terms below, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. 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. ^ Based on $10,000 over 3 years ^^ Based on $30,000 over 5 years

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

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