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Find and compare home loans from online lenders

Loan purpose

Loan amount

$

Deposit

Loan Term

151015202530

25 years

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Comparison Rate - Low to High
Product

Star Gold Home Loan

Real Time Rating™

4.84

/ 5

Winner of Best Refinance Home Loan, RateCity Gold Awards 2022

Interest Rate

1.79

% p.a

Variable

Comparison Rate*

1.84

% p.a

Company
Repayment

$1,241

monthly

Features
Redraw facility
Offset Account
Borrow up to 60%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

4.84

/ 5
Go to site

Winner of Best Refinance Home Loan, RateCity Gold Awards 2022

Product

Well Balanced

Real Time Rating™

4.43

/ 5

Winner of Best Variable Home Loan, RateCity Gold Awards 2022

Interest Rate

1.85

% p.a

Variable

Comparison Rate*

1.88

% p.a

Company
Repayment

$1,250

monthly

Features
Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

4.43

/ 5
Go to site

Winner of Best Variable Home Loan, RateCity Gold Awards 2022

Product

Yard Home Loan (Special)

Real Time Rating™

4.09

/ 5

Winner of Best Variable Home Loan, RateCity Gold Awards 2022

Interest Rate

1.99

% p.a

Variable

Comparison Rate*

2.02

% p.a

Company
Repayment

$1,270

monthly

Features
Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

4.09

/ 5
Go to site

special

Yard’s low-rate variable special home loan ~ Ends in 12 days

Winner of Best Variable Home Loan, RateCity Gold Awards 2022

Product

Well Balanced

Real Time Rating™

4.43

/ 5
Interest Rate

3.45

% p.a

Fixed - 1 year

Comparison Rate*

2.02

% p.a

Company
Repayment

$1,494

monthly

Features
Redraw facility
Offset Account
Borrow up to 90%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

4.43

/ 5
Go to site
Product

Yard Investor Bundle Loan

Real Time Rating™

3.81

/ 5
Interest Rate

2.15

% p.a

Variable

Comparison Rate*

2.18

% p.a

Company
Repayment

$1,294

monthly

Features
Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

3.81

/ 5
Go to site
Product

Owner Occupier Accelerates - Liberate (Principal and Interest)

Real Time Rating™

3.67

/ 5
Interest Rate

2.24

% p.a

Variable

Comparison Rate*

2.18

% p.a

Company
Repayment

$1,307

monthly

Features
Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

3.67

/ 5
Go to site
Product

Well Balanced

Real Time Rating™

3.67

/ 5

Winner of Best Investor Home Loan, RateCity Gold Awards 2022

Interest Rate

2.17

% p.a

Variable

Comparison Rate*

2.20

% p.a

Company
Repayment

$1,297

monthly

Features
Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

3.67

/ 5
Go to site

Winner of Best Investor Home Loan, RateCity Gold Awards 2022

Product

Back to Basics Home Loan Special Offer

Real Time Rating™

4.40

/ 5
Interest Rate

2.19

% p.a

Variable

Comparison Rate*

2.20

% p.a

Company
Repayment

$1,299

monthly

Features
Redraw facility
Offset Account
Borrow up to 70%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

4.40

/ 5
Go to site

Cashback

Receive $3,000 cash when you take out a Suncorp Bank home loan of $750K or more with LVR <=90%. Apply by 31 June 2022, settle by 30 September 2022. Unless withdrawn prior. T&Cs & eligibility criteria apply. ~ Ends in about 1 month
Product

Yard Investor Loan

Real Time Rating™

3.71

/ 5

Winner of Best Investor Home Loan, RateCity Gold Awards 2022

Interest Rate

2.19

% p.a

Variable

Comparison Rate*

2.22

% p.a

Company
Repayment

$1,299

monthly

Features
Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

3.71

/ 5
Go to site

Winner of Best Investor Home Loan, RateCity Gold Awards 2022

Product

Low Rate Home Loan - Prime (Owner Occupied) (Principal and Interest)

Real Time Rating™

3.67

/ 5

Winner of Best Home Loans Over 1m, Best Variable Home Loan, RateCity Gold Awards 2022

Interest Rate

2.24

% p.a

Variable

Comparison Rate*

2.24

% p.a

Company
Repayment

$1,307

monthly

Features
Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

3.67

/ 5
Go to site

Winner of Best Home Loans Over 1m, Best Variable Home Loan, RateCity Gold Awards 2022

Product

Low Rate Home Loan - Prime (Owner Occupied) (Interest Only)

Real Time Rating™

2.81

/ 5
Interest Rate

2.44

% p.a

Variable

Comparison Rate*

2.24

% p.a

Company
Repayment

$610

monthly

Features
Redraw facility
Offset Account
Borrow up to 60%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

2.81

/ 5
Go to site
Product

Ocean Owner Occupied Variable (No Annual Fee)

Real Time Rating™

3.93

/ 5

Winner of Best Refinance Home Loan, RateCity Gold Awards 2022

Interest Rate

2.16

% p.a

Variable

Comparison Rate*

2.27

% p.a

Company
Repayment

$1,295

monthly

Features
Redraw facility
Offset Account
Borrow up to 60%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

3.93

/ 5
Go to site

Winner of Best Refinance Home Loan, RateCity Gold Awards 2022

Product

Low Rate Home Loan - Prime (Investment) (Principal and Interest)

Real Time Rating™

3.55

/ 5
Interest Rate

2.29

% p.a

Variable

Comparison Rate*

2.29

% p.a

Company
Repayment

$1,314

monthly

Features
Redraw facility
Offset Account
Borrow up to 60%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

3.55

/ 5
Go to site
Product

Well Balanced

Real Time Rating™

3.09

/ 5
Interest Rate

4.42

% p.a

Fixed - 2 years

Comparison Rate*

2.32

% p.a

Company
Repayment

$1,654

monthly

Features
Redraw facility
Offset Account
Borrow up to 90%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

3.09

/ 5
Go to site
Product

Low Rate Home Loan - Prime (Owner Occupied) (Interest Only)

Real Time Rating™

2.56

/ 5
Interest Rate

2.54

% p.a

Variable

Comparison Rate*

2.34

% p.a

Company
Repayment

$635

monthly

Features
Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

2.56

/ 5
Go to site
Product

Low Rate Home Loan - Prime (Investment) (Principal and Interest)

Real Time Rating™

3.30

/ 5

Winner of Best Investor Home Loan, RateCity Gold Awards 2022

Interest Rate

2.39

% p.a

Variable

Comparison Rate*

2.39

% p.a

Company
Repayment

$1,329

monthly

Features
Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

3.30

/ 5
Go to site

Winner of Best Investor Home Loan, RateCity Gold Awards 2022

Embed

Can you get a home loan online?

Regardless of whether you're a first home buyer or you're buying an investment property, and whether your home loan is with a major bank, a smaller bank, or a non-bank mortgage lender, chances are that at least part of the application process will take place online. Where an owner occupier or investor may have once filled out paper application forms and sent off supporting documentation by fax or express post, today you may be able to manage the entire process from home on your laptop, or even using your tablet or smartphone.

Some specialist mortgage lenders are taking online home loans to their logical conclusion and conducting their entire operation online.  As these lenders don’t need to worry about the upkeep costs of maintaining branches or ATMS, or offering other financial products than just home loans, online-only mortgage lenders can often provide new customers with some great rates compared to some of the large banks.

Taking these concepts a step further are neobanks – online-only financial institutions that operate via apps. Only a few neobanks are operating at the time of writing, and only a few of those are offering home loan products, though you can expect more to follow in the future.

Can you get pre-approved for a home loan online?

Almost every mortgage provider in Australia, including traditional banks and online-only lenders, should be able to offer home loan pre-approval online.

This is where you provide the lender with information about your income, expenses, assets and expenses, which they will then analyse to work out how much you may be able to afford in monthly repayments, and in turn, the loan amount the lender may be willing to lend you.

Obtaining a pre-approval from a lender is often handy when you haven’t yet found the perfect property, as it can give you a more concrete idea of your maximum budget. This can help you to negotiate with real estate agents with confidence, or bid at an auction for a new home with less risk of accidentally spending more than you can afford.

Keep in mind that pre-approval on a mortgage is not the same as having a mortgage application approved. While you’re less likely to be turned down for a home loan if you’ve already received pre-approval, the lender could still decline you when the time comes to make a formal home loan application, such as if the valuation came up short or your financial situation has changed.

Are online mortgage lenders safe?

Two of the main concerns that many Aussies have when it comes to applying for a home loan online are around the safety of their money (“what if the bank goes out of business?”) and the safety of their personal details (“what if my account gets hacked?”).

One way to help build your confidence in an online mortgage lender is to check its credentials. If the lender has an Australian Credit License (ACL) you know they are expected to follow proper regulations when providing home loans and are obliged to lend money responsibly.

Several online mortgage lenders are backed by bigger banks, offering not only their finances but their legal protections as well. Doing a little digging into who owns an online lender and where it sources its funding from may be able to help build your confidence in its performance. For example, if the bank backing an online lender is an authorised deposit-taking institution (ADI) then money deposited with the bank is guaranteed by the government up to a point.

Every online lender should have thorough encoding and security settings in place, to help protect your data and your money from malicious code. Online security features such as encryptions, two-factor authentication and more can all help you keep your personal information safe at every step of the home loan process, from the initial online application to your regular repayments.

What are the advantages of online home loans?

Compared to the bigger banks, online-only mortgage lenders tend to be smaller organisations, meaning they may be able to offer lower interest rates and upfront and ongoing fees to their home loan customers (check their comparison rate to get a better idea of the overall combined cost of the loan over the loan term). This is because with no branches to manage, they often have fewer overheads to cover. 

These lower costs could make online home loan options particularly appealing for borrowers wanting to refinance onto a lower interest rate. And if an online lender also offers savings accounts, personal loans or similar financial products, you may find that their rates and fees are similarly competitive.

Online lenders may also have advantages around technology and innovations compared to some of their big bank competitors. If you’re confident about managing your home loan and other accounts from your smartphone or laptop, you may find you’re in a position to benefit from new financial products and services that change the way you think about personal finance.

What are the risks of online home loans?

An online mortgage may not be the best option for every borrower. Many online mortgage lenders are specialists, meaning they only provide home loans, with no option for savings accounts, personal loans, credit cards or other financial products. This could make them less convenient if you prefer to do all of your banking in one place.

While some online mortgage lenders may offer home loans with low interest rates and fees, you'll still need to fulfil their eligibility criteria to successfully apply, which may include having a low loan to value ratio (LVR). If this lending criteria doesn't match the situation with your property value, you may not be in a position to benefit from these rates.

The low-rate home loans offered by online lenders may not offer as many extra features and benefits as some other options. While the interest repayments could be more affordable, you may also miss out on flexible features and benefits such as an offset account, a redraw facility, or the ability to make extra repayments. Some of the major mortgage lenders may also offer cashback deals for new customers. 

Additionally, as online-only lenders don’t have branches to visit, you won’t have the options to talk over your home loan in person. Many online lenders can also be contacted by telephone, though some operate solely online, through apps, and via email.

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How do you compare online mortgage lenders?

Finding the best online mortgage lender for your needs is much like finding the best traditional lender. Comparing home loan interest rates, fees, features and benefits can often be a good start, and a quick and simple way to do so is by using RateCity’s comparison tables. 

You can use the filters to narrow down your home loan shortlist to just the lenders that may match your needs (for example, choosing between variable rate or fixed rate home loans, or principal & interest or interest-only repayments, depending on your preferences), and check the Real Time Ratings™ to get a better idea of what overall value they may offer. You can also check out some award-winning options from RateCity's Gold Awards

You can also use RateCity's calculators to help you estimate the cost of your home loan repayments, your borrowing power, and more, whether you're buying or refinancing. If your deposit is on the low side, you can also calculate what you may pay in Lenders Mortgage Insurance (LMI)

Additionally, when it comes to online lenders, you may also want to take a closer look at reviews from other satisfied (or less than satisfied) customers, to get a better idea of what you can expect from their online customer service, and how useful their apps and tools may prove for you.

What is a line of credit?

A line of credit, also known as a home equity loan, is a type of mortgage that allows you to borrow money using the equity in your property.

Equity is the value of your property, less any outstanding debt against it. For example, if you have a $500,000 property and a $300,000 mortgage against the property, then you have $200,000 equity. This is the portion of the property that you actually own.

This type of loan is a flexible mortgage that allows you to draw on funds when you need them, similar to a credit card.

How does a line of credit work?

A line of credit functions in a similar way to a credit card. You have a pre-approved borrowing limit and can draw on as little or as much of that sum as you need it, with interest paid on the outstanding balance.

Popular products include Commonwealth Bank Viridian Line of Credit, ANZ Equity Manager, Westpac Equity Access and NAB Flexiplus.

How do I apply for a home improvement loan?

When you want to renovate your home, you may need to take out a loan to cover the costs. You could apply for a home improvement loan, which is a personal loan that you use to cover the costs of your home renovations. There is no difference between applying for this type of home improvement loan and applying for a standard personal loan. It would be best to check and compare the features, fees and details of the loan before applying. 

Besides taking out a home improvement loan, you could also:

  1. Use the equity in your house: Equity is the difference between your property’s value and the amount you still owe on your home loan. You may be able to access this equity by refinancing your home loan and then using it to finance your home improvement.  Speak with your lender or a mortgage broker about accessing your equity.
  2. Utilise the redraw facility of your home loan: Check whether the existing home loan has a redraw facility. A redraw facility allows you to access additional funds you’ve repaid into your home loan. Some lenders offer this on variable rate home loans but not on fixed. If this option is available to you, contact your lender to discuss how to access it.
  3. Apply for a construction loan: A construction loan is typically used when constructing a new property but can also be used as a home renovation loan. You may find that a construction loan is a suitable option as it enables you to draw funds as your renovation project progresses. You can compare construction home loans online or speak to a mortgage broker about taking out such a loan.
  4. Look into government grants: Check whether there are any government grants offered when you need the funds and whether you qualify. Initiatives like the HomeBuilder Grant were offered by the Federal Government for a limited period until April 2021. They could help fund your renovations either in full or just partially.  

How much does it cost to change home loans?

When changing or refinancing your home loan, you may focus on paying less interest, but you should also account for other fees charged by your existing lender as well as the new lender. Your current lender will likely charge a loan discharge fee and possibly also a settlement fee, which can together cost you a few hundred dollars. Applying for a new loan will similarly involve an administration fee as well as a property valuation fee if the new lender insists on verifying the value of your home. Further, depending on the state or territory you live in, you may need to pay duties and fees to register the change in your mortgage. 

You may want to think about why you are changing home loans, and then use a refinancing calculator to see how you can get the most out of the switch. For instance, if you are refinancing your mortgage to pay it off faster, you could check if another lender will offer a shorter loan period, involving larger repayments. You should check whether your current mortgage lender is willing to renegotiate your loan terms before you approach a new lender and thus save on some of the fees. 

What is a mortgage rate?

The interest rate on a home loan is sometimes called the mortgage rate. This percentage indicates how much interest the lender will charge you with each home loan repayment. Your interest rate is effectively the “cost” of “buying” the money you’re using to buy a property – the higher your mortgage rate, the more your home loan repayments may cost.

Using a home loan calculator, you can estimate how much your home loan repayments may cost, based on your mortgage rate, loan term, and loan amount. This may also be affected by whether you’re making principal and interest repayments or interest-only repayments, if you have a fixed rate or variable rate mortgage, and any fees and other charges that may apply.

This article was reviewed by Personal Finance Editor Alex Ritchie before it was published as part of RateCity's Fact Check process.

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