Mozo awards showcase online home loan borrowing by savvy 30s home buyers
Loans.com.au has been named Home Lender of the Year 2015 in Mozo’s Experts Choice Awards.
The online lender took out five awards.
The typical loans.com.au customer is aged in their 30s, living in a greater metropolitan area, with a professional career and household income 30 percent above average.
It comes as 86 per cent of the best value home loans are from small and non-bank lenders, according to the comparison site, Mozo.com.au.
Mozo looked at 390 home loans from 81 providers to identify the ten lowest cost loans in five categories with online provider Loans.com.au winning all five categories.
“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,” said Mozo director, Kirsty Lamont.
Mozo calculations show borrowers with a typical $300,000 loan could save as much as $1,920 in interest and fees each year by switching 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,” said Lamont.
Mozo named ANZ Major Bank Home Lender of the Year for having the best value loan against its three rivals.
The Big 4’s share of the home loan market has decreased by 1% in two years, which equates to $18 million a day being lost to smaller ledners.
The biggest winners of Mozo’s Experts Choice Home Loan Awards are:
“In every category we have been shown to offer the best value to customers, which demonstrates that we are making good gains in breaking the stranglehold of banks and driving interest rates down.”
Ms Mortimer said the fact that the top award went to an online-only lender shows the level of sophistication the Australian home mortgage market had attained.
“Gone are the days when customers wanted to go into a branch to apply for their home loan,” she said. “Everyone knows there are better ways to spend their time than waiting in a bank queue and our customers are keen to manage their money online in their own time.”
No branch network overheads allowed loans.com.au to pass savings onto customers in the form of lower interest rates and fees.
“The online lending model is not only more convenient for customers, it’s cheaper,” Ms Mortimer said. “Our borrowers know they will save money and time with an online home loan and being named Home Lender of the Year shows us we are meeting their needs.”