Online lender clash: A new breed is attacking the originals

Online mortgage lenders have been preying on Australian banks for more than a decade, bringing low-cost lending, efficiency and flexibility to an industry in dire need of an overhaul. And as the popularity of online lenders over traditional banks grows, so does the number of online options available to sophisticated borrowers.

Most notably, CommBank jumped on the wave of online lending with the launch of Unloan, Australia’s first digital home loan that rewards refinancers with low variable rates, zero fees and a discount that increases each year up to at 30 years old.

But the first pioneers of online lending are not left out either. Aussie-owned Loans.com.au is on a mission to become the country’s most popular online lender and prove that it has just rolled out a new rock-bottom refinance rate of 3.10% (comparative rate 3.12% *) for borrowers aged 70. % LVR.

Another pioneer in the space, UBank, recently merged with neo-bank 86,400 to create a new online lending powerhouse that is already making waves with its smart, ultra-competitive home loans.

So if you’re ready to reap the benefits of an online home loan, read on for our expert insight into the best home loans offered by the new breed compared to Australia’s original online home loan pioneers….

UBank – Neat Home Loan
  • Variable rates from 3.64% (comparison rate 3.66%*) – minimum down payment 40%
  • Free additional redemptions and ease of withdrawal
  • Fast and paperless online application process

Our opinion
As one of the best online banks in our database, UBank has our stamp of approval when it comes to offering Australian borrowers value for money. Why? Well, for one thing, with ultra-low rates, no ongoing fees, and plenty of flexible payment options, the neat home loan is pretty hard to argue with. Plus, UBank is backed by NAB so you get all the savings an online lender can offer, plus the security of backing from a major bank. He is available for loans of up to $5 million.

Where can I get it? Visit UBank to find out more >>

Want to explore more borrowing options? Visit our home loan comparison table to get started.

*
ATTENTION: This comparison rate only applies to the example or examples given. Different amounts and durations will result in different comparison rates. Costs such as withdrawal charges or prepayment charges, 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 shown is for a secured loan with monthly principal and interest repayments of $150,000 over 25 years.

**
Initial monthly repayment figures are estimates only, based on the advertised rate, loan amount and term entered. Rates, fees and charges and therefore the total cost of the loan may vary depending on the amount of your loan, the term of the loan and your credit history. Actual repayments will depend on your personal circumstances and changes in interest rates.

^ See Mozo Experts Choice Home Loan Awards information

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