Online home loans

Average customer rating: 4.3/5
Written by James Hurwood
Reviewed by Stephen Zeller
Updated March 19, 2024

Expert tips for looking at online home loans

As General Manager of Money at Compare the Market, Stephen Zeller wants to help prospective homebuyers understand their options, and this includes taking online home loans into account. You never know what kind of deal you could potentially find by going online vs brick-and-mortar! With that in mind, he has some tips regarding online home loans:

Stephen Zeller
General Manager – Money

Check the reviews

Be sure to check the reviews of any online lenders you’re considering; you’ll want to make sure they haven’t received too many negative reviews from previous customers before you commit to working with them.

Consider your needs

Do you feel you may need branch support and wish to speak with someone from your lender in person? If so, a home loan from a traditional lender may be of interest to you.

Compare your options

Online lenders only offer their own products and no one else’s, just like a regular brick-and-mortar bank. Our Home Loan Specialists have products from over 20 lenders available to select from, and they’ll solely be looking for products that they think might suit your financial situation. Mortgage brokers facilitate over 70% of all new residential home loans in Australia, so they must be popular for a reason!

Online home loans explained

What is an online home loan?

What types of home loans can you get online?

What makes online home loans different?

Could an online home loan be right for me?

Are online home loans safe?

How does the online home loan application process work?

How to compare online home loans

home-loan-comparison

No matter which lender you go with, how you compare should be largely the same. Ask yourself:

  • Which has the lowest interest rate, and which type of home loan interest rate suits you – fixed or variable? Remember to check the different comparison rates on each home loan for an idea of its real cost versus the cost of the loan to you.
  • Does the loan charge high fees, or is it fee-free?
  • What flexible features does the loan offer?
  • How easily can you apply for the loan, and do you meet the lending criteria?
  • How quickly do you need finance approval? Is there a settlement timeframe clause you need to meet, and if so, will a brick-and-mortar lender be able to process your loan application within said timeframe?

When comparing online lenders, you should also check out reviews from other customers to see how they perform. Remember not to get sucked in by flashy advertising!

What are the pros of online home loans?

Lower interest rates

Lower fees

Faster approval times

What are the cons of online home loans?

Some specific types of borrowers may miss out

They may not offer a wide range of home loans

Some might prefer in-person banking

Meet our home loans expert, Stephen Zeller

Stephen Zeller
General Manager – Money

Stephen has more than 30 years of experience in the financial services industry and holds a Certificate IV in Finance and Mortgage Broking. He’s also a member of both the Australian and New Zealand Institute of Insurance and Finance (ANZIIF) and the Mortgage and Finance Association of Australia (MFAA).

Stephen leads our team of Home Loan Specialists, and reviews and contributes to Compare the Market’s banking-relating content to ensure it’s as helpful and empowering as possible for our readers.