If cheapest Loan rate is your preference, then it’s worth reading below :
The financial comparison website examined 504 home loans from 89 providers, finding nearly two thirds of the best-value home loans on the market are from online lenders, which were 0.7 per cent cheaper on average than the big four for a typical 25-year, $350,000 loan.
Many borrowers who go through a bank or mortgage broker often don’t get to see the full spectrum of offers available and may be unsure of what rates are available elsewhere, especially in the online space
Many online lenders are able to pass on significant cost savings to consumers because they have fewer overheads than traditional banks
Additionally, big banks recently warns customers that they could be forced to pay for the government’s $$6.2 budget repair levy via higher mortgage rates.
How is online lender different from a traditional bank? The main difference is you need to fill the application online and talk to a lending manager over phone .
While lot of consumers are comfortable taking out car insurance, credit cards and personal loans online, lack of awareness prevents choosing the same for a home loan
Major online banks that we are aware are:
- State Custodians
Before finalising a Home Loan with your banker, compare the rate (always compare the comparison rate because it is the actual rate) with any of the above Online Lenders and see for yourself