Switch and save: take your home loan online
Article by MozoMuch like the waning world of retail, the days of big fancy bank branches being the only option for home loan shoppers are over with online lenders now shaking up the scene like never before.
Whilst the Big 4 announce record profits and lift interest rates at whim, small online players have been luring borrowers with exceptional rates and products. In fact, Australia’s top five variable mortgage rates are all from online lenders.
My Mortgage Freedom tops this list with 6.19% on its Low Rate + loan – a massive 0.75% lower than the average Big 4 bank discounted variable rate of 6.94%. Making this switch could help you pay off your loan three and a half years faster, saving $3,524 a year.
And it’s not just top rates, most online lenders offer the same facilities as the big banks – allowing for extra repayments, redraw facilities and telephone support – but don’t take our word for it…
Mozo reviewers continue to herald these online heroes, including Michael from NSW who gave his UBank UHomeLoan a smashing 9 out of 10.
“When I switched over loans it was all done online or by phone, and I saved a bundle in interest charges. I have recommended this product to family and friends.”
So if you're thinking about making the move online, be sure to run your current loan through our home loan health check to find out (in seconds!) how much you could save.
Australia’s lowest mortgage rates
|Lender||Home Loan||Interest Rate||Upfront Fees||Annual Fees|
|V Plus||Advantage Plus Variable||6.23%||$50||$350|
|Homeloan HQ||Mortgage Bonus Loan||6.24%||$99||$330|
- Rates based on a $300,000 loan over 25 years
- Excludes products that have maximum LVR of less than 80%