Aussie borrowers dumping old bank loans

Kelly Emmerton

13 Feb 2018

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Australian borrowers chasing lower rates and more flexible lending terms are deserting the big banks in droves in favour of more competitive smaller lenders.

Mozo has seen a surge in home loan comparison activity for smaller lenders recently and industry data* suggests that growing numbers of borrowers are switching away from the big banks in search of more competitive rates and terms.

Given the recent big bank rate hikes and the ongoing fallout from the banking royal commission, it's hardly surprising that so many Aussies are turning to smaller lenders for a better deal. If you're looking for a more flexible way to borrow at a low rate, check out these great value home loan, personal loan and business loan options from rival lenders:

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

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 >>

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ME Basic Home Loan
  • 3.97% interest rate (3.99% comparison rate*)

  • Free extra repayments and redraw facility

  • $0 application fee

Sometimes, simple is just what you need. The ME Basic Home Loan is a great value loan with a few key features to help you save even more while paying down your mortgage, like the ability to make extra repayments and choose either a weekly, fortnightly or monthly repayment schedule. ME is an online lender, but you can choose to meet with a home loan specialist at a time and place that suits you to help you get started. No drama, no fuss, just excellent value.

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

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HSBC Discounted Home Value Loan
  • 3.59% variable rate (3.61% comparison rate*)

  • Borrow with just 10% deposit

  • Free extra repayments and online redraw facility

The HSBC Discounted Home Value Loan is a budget-friendly option that still offers up some of the key features that can help you save even more on your mortgage, like free extra repayments. Plus, with a dedicating relationship manager to guide you through your application and the option to borrow up to 90% of your new home’s value, this loan makes it super easy for first time buyers to get their foot in the door.

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

PERSONAL LOANS

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HSBC Unsecured Personal Loan
  • Fixed rates from 8.50% (9.06% comparison rate^^)

  • Borrow up to $50,000

  • Free extra repayments

To get started with a HSBC Personal Loan, you can check your eligibility and get a personalised rate online, then, if you’re ready to go ahead, apply online in as little as 10 minutes. The loan comes with a competitive rate and terms of up to 5 years, for loan amounts up to $50,000. You’ll also have the option to make free extra repayments on your loan, and there’s no early repayment penalty in the last 6 months of your loan ($199 earlier than that.)

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

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.


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

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