Best online mortgage lenders in Australia

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Nowadays, more and more Australians turn to online lenders when taking out a home loan. With amazing perks like convenient applications, fast approval, and lower interest rates, it's not hard to see why!

So if you’re looking for an alternative to the traditional brick-and-mortar bank, here are some amazing options to consider, including winners of the 2024 Mozo Experts Choice Home Loan Awards^.

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Mozo Experts Choice Home Loan Awards

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Every year, Mozo’s expert judges comb through hundreds of home loans from 99 lenders across our database, sifting through rates, features, and fees until stand-outs emerge to be crowned winners. This year had fantastic offers from online lenders and digital banks, so there’s much to compare. 

Browse a selection of award-winning loans from this year below.

Compare best online home loans

Unloan - Variable Home Loan
  • Variable rates from 5.99% p.a. (5.90% p.a. comparison rate*)
  • Zero upfront or ongoing fees
  • Low cost home loan winner - Mozo Experts Choice Awards 2023 & 2024^

Expert verdict:

Unloan’s Variable Home Loan has taken out a low cost home loan award for the second year running in the Mozo Experts Choice Awards^. Built by CommBank, Unloan offers owner-occupiers a super low 5.99% p.a. variable rate (5.90% p.a. comparison rate*) along with a loyalty discount that shaves 1 basis point off your interest every year for up to 30 years. Loan features include free extra repayments and redraw, and there are no pesky fees to pay. Available for loans of up to $10M. Minimum 20% deposit.

Bendigo Bank Express Home Loan
  • 6.01% p.a. variable rate (6.14% p.a. comparison rate*)
  • Offset account and redraw facility
  • 2024 Mozo Experts Choice Low Cost Home Loan winner

Expert verdict:

The Express Home Loan is only available online and has the lowest variable rate of Bendigo Bank home loans at 6.01% p.a. (6.14% p.a. comparison rate*). It also comes with generous features to help you save on interest including an offset account, redraw facility and the ability to make free extra repayments. You’ll be able to borrow up to $3 million and have the flexibility to split. Just a 10% deposit is required and Bendigo says you could get fast online approval in as little as an hour.

loans.com.au - Variable Home Loan
  • 6.04% p.a. variable rate (6.06% p.a. comparison rate*)
  • Free extra repayments and redraw + optional offset account
  • Available to borrowers with 80% LVR
  • 2024 Mozo Experts Choice Award winner^
Find out more

Aussie owned loans.com.au has been taking on the banks with low rate online home loans since 2011, and the Variable Home Loan boasts a competitive rate for borrowers with a 20% deposit or equity or more. Our judges rated it among the best for first home buyers in the  2024 Mozo Experts Choice Awards^ but it is also a suitable choice for refinancers or new home buyers. Flexible features include unlimited free extra repayments, free redraw and an optional offset account for 0.10%, plus there are no pesky ongoing fees to pay. The loan settlement fee is $300. Available for loans of up to $2 million.

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Editor's picks online home loans

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Looking for something unique? Us too! While these loans may not have won an award this year, we still believe they offer something unique worth checking out. So if you're comparing online home loans, here are this month's editor's picks.

ubank - Neat Home Loan
  • Variable rates from 6.14% p.a. (6.16% p.a. comparison rate*) for LVRs up to 80%
  • Free first property valuation up to $360
  • Free extra repayments and redraw facility

Editor’s Choice:

ubank’s variable home loan for owner-occupiers making P&I repayments has certainly made a splash, along with its win at the 2022 Mozo Experts Choice Banking Awards for Best Essential Bank. With rates at 6.14% p.a. (6.16% p.a. comparison rate*) for up to 80% LVR, you could borrow up to $5 million with minimal fees. You also have the option to make free extra repayments with a free redraw facility, in case you need to dip back into those funds later on. Just be aware that loans with a term of over 30 years will be available for new purchase applications only. There’s also a $250 settlement fee, but ubank also offers to cover your first property valuation up to $360.

Macquarie Basic Variable Home Loan
  • Variable rates from 6.15% p.a. (6.17% p.a. comparison rate*)
  • Free extra repayments and redraw facility
  • No upfront or ongoing fees

Editor's Choice:

With variable interest rates at 6.15% p.a. (6.17% p.a. comparison rate*), Macquarie’s Basic Home Loan brings with it minimal fees and a range of features like free extra repayments and a free redraw facility. Together with a split account option so you can split your loan between variable and fixed, the Basic Home Loan from Macquarie is available to owner occupiers and investors alike (higher rates for investors). 30% deposit required.

Athena Straight Up Variable Home Loan
  • 6.24% p.a. variable rate (6.24% p.a. comparison rate*) for borrowers with a 50% LVR
  • Free extra repayments and redraw facility
  • No valuation, exit or monthly fees
Find out more

Online lender Athena is on a mission to save borrowers money on their mortgage and the Straight Up loan has the key basics covered - competitive rates, no fees and free redraw. Interest rates are tiered depending on your Loan-to-value Ratio so to qualify for the 6.24%p.a. rate (6.24% p.a. comparison) you’ll need a minimum 50% deposit or equity. This loan doesn’t have an offset but you can make extra repayments and use the available redraw should you need. It’s available to refinancers and new borrowers purchasing properties in capital or major regional cities. Max loan amount is $2.5 million and according to Athena it just takes 15 minutes to apply.

FAQs about online home loans

How do you apply for an online home loan?

When applying for an online home loan, there are a few things you'll need to prepare beforehand. 

Identification

Having proof of your identity is mandatory for taking out nearly any financial product, but especially loans. You may need to provide multiple forms of ID for your application. Valid forms of ID can include:

- Birth certificate.
- Passport.
- Licence (either local or overseas).
- Citizenship certificate.
- Pension card issued by Centrelink.
- Medicare card.
- Household bill, e.g. council rates, phone, or electricity bill.

Income 

Providing proof of income shows the lender how you will repay the loan. This can include recent pay slips, tax returns, employer statements, rental agreements, or any other valid paperwork showing how much money you expect to make.

Living expenses

Before applying for a home loan, calculate all your living expenses, including any unexpected expenses. This includes food, rent, clothing, utilities, and so on. If you're a landlord receiving rental income, include any costs related to renting out the property, including maintenance or insurance.

After you have this information, filling out the forms and uploading the required documentation can take around 30 minutes.

How do you apply for a line of credit online?

Applying for a line of credit is similar to applying for a credit card. The bank assesses your financial situation and establishes a max loan amount and your ability to pay back debt. From there, they will give you a line of credit up to this amount.

Applying online follows a similar process to in-person. Simply fill out the forms with the required documentation and submit it for approval.

What does refinancing your home loan mean?

Refinancing your home loan just means you've swapped your existing mortgage for a new one, either to a different product with the same lender or a totally new lender. It's the home loan equivalent of switching mobile plans or energy providers.

How does refinancing your home loan work?

Refinancing a mortgage is done for a number of reasons, such as switching to a better interest rate or a loan with fewer fees and better features, like free extra repayments with a redraw facility.

While refinancing can sometimes be a bit of a process, it's still a worthwhile option if you're unhappy with your current home loan. Many lenders even offer cashback to customers who refinance with to one of their products, so shop and around and see what deals could be out there for you.

Once you find one you're happy with, get in touch with the lender to see what their refinancing options look like. They'll take into consideration your property, the outstanding balance on your loan, your loan-to-value ratio and how much equity you have, and other serviceability tests like your income and other debts. If they decide you're a good fit, they'll approval your refinancing application and start the process of moving you over. All up, it can be done in as little as six easy steps.

How long does it take to apply for an online home loan?

Applying for an online home loan can be easy if you have all your required paperwork ready. Most online forms can be filled out within 20-30 minutes and you can expect a result in the coming days or weeks. Some lenders even claim to offer ten minute applications, so compared to going in person, online can definitely be speedier. This can make it especially handy if you're after pre-approval before moving on a property, but keep in mind 'quick' shouldn't mean 'careless': it's still important to do your due diligence and understand what you're getting into.

^See information about the Mozo Experts Choice Home loans Awards

Want to see how the selection above stacks up against other home loan offers? Visit our home loan comparison hub to filter your search by rate and mortgage type.

* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.