Though the online mortgage industry has only been around for a few years, they are growing in market share. Find out why millions of Australians are opting for an online home loan.
The first questions we’re usually asked about online lenders, and the answer is yes. In Australia, all lenders, including those online, are regulated. Legitimate lenders usually display their Australian Credit Licence (ACL) number on their websites, which you can look up on the ASIC register.
You might also be surprised to learn that many online lenders are actually owned by the major banks, though they trade under a different name, have different branding, and offer different products.
And of course, all the lenders we compare on our site have been verified by us.
You may also want to look for online reviews from other borrowers, which can give you an idea of how good the lender’s customer service is, and how quickly they respond to queries.
Lastly, keep in mind that since the lender is giving you money, instead of the other way around, as a borrower you risk is relatively low. If the lender goes under, your loan will likely be taken on by another company with no immediate change to the contract terms.
Now that we have the question of security out of the way let’s talk about online home loans.
Before you jump into comparing online home loans, you need to decide what type of home loan you want. Are you an owner-occupier or an investor? Do you need a low-deposit loan? Are you building or buying an existing house? Are you a first home buyer? You can find information about all these topics on our site.
Do you need a fixed or variable interest rate? Do you want an offset account? Do you want to be able to put in extra repayments and take redraws when you’re short of funds?
When you’re looking for the best online home loan rate, it’s a good idea to use the comparison rate instead of the interest rate. The comparison rate includes the interest and most of the fees, and it gives you a better overview of what the loan will cost.
The calculators on our site can help you figure out how much the loan could cost you in dollar terms. It also gives you a rough indication of what the repayments might be so you can decide if they are affordable.
Though most online lenders don’t have hidden fees, it’s always a good idea to check for any additional costs that might not be included in the comparison rate. For example, some features, like offset accounts, can come with additional fees.
All advertised rates and fees are a guide. The mortgage rate you pay will be tailored to your individual circumstance. If you want to get the best online home loan rate, talk to your lender. They can give you a more accurate picture of how much you’ll really be paying, and may also give you tips on what to include in your application, so you get the best rate possible.