Almost nine in ten of the best value home loans in Australia right now are from small and non-bank lenders, according to new product research.
Financial comparison website Mozo looked at 390 home loans from 81 providers to identify the ten lowest cost loans in five categories – best value variable home loan, best value full feature home loan, best value first home loan, best value fixed rate home loan, and best value major bank.
“These Awards are designed to find the best value products available to Australians right now and surprisingly our major banks don’t rate a mention when it comes to the best value variable, fixed or full feature home loans on the market,” said Mozo director, Kirsty Lamont. The research revealed that 86% of the best value home loans were from either non-major or non-bank lenders.
Online lender loans.com.au was named overall Home Lender of the Year, getting a mention in all five categories.
Mozo calculations show that borrowers with a typical $300,000 loan could save as much as $1,920 in interest and fees each year by switching from the average Big 4 rate to the best on market.
“These results prove just how much impact competition and two rate cuts has had on the market in the past 12 -24 months,” Lamont said.
“While price plays a big role, it’s clear consumers’ comfort with smaller, online and even non-bank brands is increasing.”
rated the best out of the majors, winning Major Home Lender of the year.