A vast majority or 86% of Australia’s best value home loans are now being given by small and non-bank lenders, says comparison site Mozo.com.au.
Mozo studied 390 home loan offerings from 81 lenders and was able to identify 10 lowest cost loans. The top picks were recognised by Mozo’s Exerts Choice Home Loan Awards.
Online provider Loans.com.au got a mention in five categories and was hailed Lender of the Year.
“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,” Mozo director Kirsty Lamont said.
Mozo said almost $2,000 may be saved by borrowers with a $300,000 loan each year if they switch 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. While price plays a big role, it’s clear consumers’ comfort with smaller, online and even non-bank brands is increasing,” Lamont said.
For the major bank category, Mozo named ANZ the Home Lender of the Year for having the best value loan against its rivals Westpac, NAB, and CBA.
It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan