The regional banks winning over big city customers on their home loans

If you've been shopping around for a home loan or looking to refinance your existing mortgage, you may be overlooking some of the best options available to you. While the big city banks dominate the market, some homebuyers are turning to regional-based banks and online lenders for their great rates, customer-focused values, and exceptional service.

What were once small-town banks like Bendigo Bank and Newcastle Permanent offer some of the most competitive rates on the market and are committed to delivering the kind of personalised service that's hard to find with legacy lenders that Aussies have been conditioned to remain loyal to. But it's this kind of loyalty that could be costing you thousands of dollars over the life of your home loan. 

Years ago, it might have been inconceivable to bank with someone who didn’t have a local branch but the digital banking revolution has well and truly shaken up the game. 98.9% of all banking transactions are now done online or via an app according to the Australian Banking Association and we are most satisfied with digital channels and use them most frequently.^ 

So if you’re on the hunt for a better banking experience following the rate rises of the last year maybe it’s time to think outside the big four box and see if you could be saving on your repayments with some of the country’s well known regional and leading online lenders below.


Mozo may receive payment if you click the products below. We don’t compare the entire market, but you can search our database of 472 home loans.
Important disclosures and comparison rate warning*
Bendigo Bank Express Home Loan
  • 5.72% p.a. variable rate (5.87% p.a. comparison rate*)
  • Offset account and redraw facility
  • 2023 Mozo Experts Choice Home Lender of the Year^

The Express Home Loan is only available online and has the lowest variable rate of Bendigo Bank home loans at 5.72% p.a. (5.87% 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.


Mozo may receive payment if you click the products below. We don’t compare the entire market, but you can search our database of 472 home loans.
Important disclosures and comparison rate warning*
UBank Neat Home Loan
  • Variable rates from 5.49% (5.51% comparison rate*) - min 40% deposit
  • Fast and paperless online application process
  • Free extra repayments
Find out more

UBank has made a name for itself as one of Australia's best value online lenders, and its new Neat Home Loan is a case in point. This low cost variable home loan rewards borrowers with lower loan-to-value-ratios (LVRs) with its best rates, while also being light on fees. Features include free extra repayments and redraw. Plus, UBank is backed by NAB so you get all of the savings an online lender can offer, as well as the security of big bank backing. Variable Home Loan 70
  • 5.60% variable rate (5.62% comparison rate*)
  • Free extra repayments and redraw + optional offset account
  • Available to borrowers with 70% LVR
Find out more

This low rate, low fee home loan could help you save thousands on your mortgage and is packed with useful features like unlimited free extra repayments and redraw, multiple loan split options and an optional offset account for 0.10%. You can borrow up to $2 million with 30% deposit or equity, and pay no monthly or ongoing fees. What's more,'s streamlined online process lets you find out if you pre-qualify in less than a minute and complete your application online.

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^Australian Banking Association, Bank on it: customer trends report 2023^Australian Banking Association, Bank on it: customer trends report 2023

* 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.

^See information about the Mozo Experts Choice Home Loan Awards

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