Why smart Aussies are dumping old bank loans

Mozo

23 Jan 2019

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Australian borrowers chasing lower rates and more flexible lending terms are starting to desert 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.

With big banks cracking down on lending criteria while simultaneously hiking rates for many borrowers, 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:

BANK BEATING HOME LOANS

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loans.com.au Essentials Variable 90
  • 3.19% variable rate (3.21% comparison rate*)

  • No ongoing fees, fee free redraw and extra repayment facilities

  • Multiple Mozo Experts Choice Award Winner

Loans.com.au is a popular online lender offering some of the lowest rates around. The Essentials Variable 90 home loan comes with a super sharp variable interest rate, no ongoing fees and money-saving features like unlimited additional repayments. The 100% online application and approvals will suit borrowers who like to do their banking digitally. Plus, this loan has consistently featured on the Mozo Experts Choice Awards winners list year on year - 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
  • 3.09% variable rate (3.09% 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 features like the ability to make unlimited free extra repayments and use a redraw facility. You'll also get 100% online support to guide you through the application and approval process from start to finish.

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

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loans.com.au Fixed Rate Special Offer
  • 3.19% fixed rate for 3 years (3.43% comparison rate*)

  • No ongoing service fees

  • Free extra repayments up to $10,000 p.a.

Don’t settle for a mediocre home loan - instead, lock in a super competitive fixed rate with Mozo Experts Choice Award winning lender, loans.com.au. This loan comes with the option to make free extra repayments, a flexible repayment schedule, and the chance to split your loan between fixed and variable rates. Plus, there are no ongoing service or upfront application fees to dent your budget.



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

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Athena Variable Home Loan
  • 3.09% variable rate (3.05% comparison rate*)

  • Free extra repayments and redraw facility

  • No upfront or ongoing fees

Athena has been taking on the big banks since its inception and the new Athena Variable Home Loan is no different. The competitive refinance mortgage features 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 >>


LOW RATE PERSONAL LOANS

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Symple Loans Personal Loan
  • Fixed rates from 5.99% (7.55% comparison rate)

  • Borrow up to $50,000

  • No early repayment fee

Whether you want to pay off existing debt, go on a long overdue holiday or get on top of some bills, then Symple Loans Personal Loan might be just the ticket. With Symple Loans personalised variable rate loan you can borrow up to $50,000 with a term of up to 7 years. Plus, you can have the money in your account the next business day. It’s that Symple!

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

SHARP BUSINESS LOANS

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Moula Business Loan
  • Interest rates start at just 1.00% per fortnight

  • No upfront or ongoing fees

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

Moula is dedicated to providing small and medium Aussie businesses with working capital through a unique platform that analyses business data to approve funding. The process is all online and hassle free - enter a few details and link up your accounting or banking data, and you could be approved for up to $250,000 within 24 hours. Plus, with no upfront, ongoing or break fees, what’s not to like? To be eligible, your business should have an ABN or ACN, been operating for at least 6 months, and a monthly turnover of $5,000. 

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 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.

^ 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 or business loan comparison tools to get started.

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

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