Why Smart Aussies Are Dumping Banks for Online Loans

Kelly Emmerton   |   01 Jul 2018

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Everything is online these days - including some of the best value home loans and personal loans around.

In fact, Mozo has taken a look at our database, and found that 1 in 2 home loans with a rate under 4% are offered by online lenders. And when it comes to personal loans, online lenders like peer-to-peer options 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:

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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 (4.11% 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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State Custodians Low Rate Home Loan with Offset
  • 3.64% variable interest rate (comparison rate: 3.67%*)

  • 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 >>

PERSONAL LOANS

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Harmoney Unsecured Personal Loan
  • Fixed rates from 6.99% (7.69% comparison rate*)

  • $0 ongoing service fee ($500 upfront fee)

  • Borrow up to $70,000

With a loans process that’s fast, easy and 100% online, Harmoney will have you picking up that new car, jet setting on a holiday or finally renovating your bathroom in no time. This loan comes with a competitive interest rate, the choice of monthly, fortnightly or weekly repayments, and the option to make free extra repayments in order to pay your loan off faster. Even better, there are no penalties for paying your loan off early. Loans are available for up to $70,000 with terms of up to 5 years.

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

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SocietyOne Unsecured Personal Loan - Excellent Credit
  • Fixed rates from 8.10% (9.36% 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 8.10% on a five 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 >>

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MyState Bank Secured Personal Loan
  • Variable rates from 7.99% (8.96% comparison rate*)

  • Extra repayments and redraw facility included

  • Borrow up to $75,000

If you’re in the market for a new set of wheels, then a Secured Personal Loan from online lender MyState could get you on the road sooner. With competitive low rates on offer for loan terms between 1 and 10 years, this one’s great for anyone looking to borrow up to $75,000. It also comes with the chance to make free extra repayments and use a redraw facility (minimum $500). Just keep in mind there are some upfront and ongoing fees to consider and you’ll need to put your new car up as security against the loan.

Where do I get it? Head over to MyState 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 calculated based on a loan of $30,000 for a term of 5 years or a loan of $10,000 for a term of 3 years as indicated, 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.

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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