Home loans from online lenders
You probably already use online suppliers for lots of things, such as furniture and clothing. Perhaps you also enjoy browsing supermarket websites, say Coles or Woolworths, for your grocery shopping. Online purchasing has become closely associated with having a wide choice and plenty of cheap deals. When it comes to searching for the best options for a home loan there are many online brands from which to choose. Some banks that have standard city centre premises also offer online only deals.
Why opt for home loans from online lenders?
Most home loans online lenders offers are excellent value when compared to traditional borrowing opportunities. All online lenders have a secure website and this is how they communicate with their customers. They also have good call centre support often at local call rates and most feature calculators on their website. Not all online lenders have branches however all of them are adept at responding promptly to enquiries from existing and potential customers.
Advantages of online home loans
If you browse the online loans available you will notice some helpful advantages including low or no initial application fees and often no ongoing fees either. Online interest rates are highly competitive and often lower than those offered by traditional banks. In terms of features, online lenders are usually prepared to be more flexible and to have more advanced products that are easy to manage via the telephone and the internet. Approval processes are generally fast and some online lenders include extra features with their cheaper interest loans such as split accounts, redraw facilities, offset accounts and zero fees for service.
Is security an issue with online loans?
If you are feeling uncertain about banking online for security reasons always check that the lender has an Australian Credit Licence (ACL) – the number will be listed on their website. It’s a legal requirement for lenders to have an ACL and this is added protection for you, the consumer. If you have borrowed money from a business with an ACL you will have greater legal protection when it comes to resolving any disputes.
In terms of worries about online hackers or identity theft, financial institutions are always improving the security of their sites and using increasingly complex encoding and encryption software to protect their customers and themselves. It is worth speaking to the individual lender of your choice to find out what security mechanisms they have in place.
What are the rewards and risks?
Customer service online and via the telephone is generally highly thought of because you are communicating with qualified credit professionals rather than call centre staff. This means an informed individual is there to give you advice and help you to structure a home loan that meets your needs. Often you are in a position to borrow more from an online lender, as they will assess your financial performance based on personal information rather than a computer algorithm. While banks focus on the total amount of credit available to you via credit cards, for example, online assessors will look at your actual balances.
If you’re not comfortable communicating online and by phone then online banking is probably not for you.