Leading Australian online lender loans.com.au has the nation’s cheapest and best value home loan for 2015, Money magazine says, as research shows the customers most likely to shop online for a home loan are metropolitan 30-somethings.
Money has awarded loans.com.au the dual titles of The Best of the Best Cheapest Home Loan and Cheapest Flexible Home Loan for non-banks for 2015, for the lowest cost, best value home loan.
It is the second consecutive year loans.com.au will hold the title of Best of the Best Cheapest Home Loan, but the flexible category is a first-time addition to the lender’s trophy cabinet.
“Previously, the flexible category was only open to banks so loans.com.au was not eligible to compete, but now there is a non-bank category we are delighted to have taken it out,” said Mr Kim Cannon, Managing Director of Firstmac, the financial powerhouse behind loans.com.au.
Mr Kim Cannon said loans.com.au had recognised the changing consumer trends of busy people, and the Money awards were recognition of the online lender’s ability to match its market.
“Loans.com.au has seen strong growth in the number of customers who are keen to do their own research to identify the best home loan product for them, and they are more empowered in the application process,” he said.
“They make an informed choice to have more input into the application process by following through on their internet research and applying for their home loan online.”
Loans.com.au customers are in every state of Australia but overwhelmingly live near cities. Just six percent of customers live outside metropolitan areas.
Borrowers who work as Professionals, Managers, and Tradespeople are overrepresented among loans.com.au customers, in comparison with Australian Bureau of Statistics data. Professionals are 29 percent, Managers 21 percent and Tradespeople, 24 percent, when national figures are 22 percent, 13 percent, and 15 percent respectively.
“Time is a valuable thing and most people make deliberate choices about how they spend their time in the same way they decide how they will spend their money,” Mr Cannon said.
“Increasingly, people are more inclined to do their home loan application online with a paperless process, outside of business hours, than spend their lunch break in a bank branch filling out forms.
“A streamlined application with online tools to track each step of the process is far more appealing to smart, busy, borrowers than having to call the bank and check whether the application has progressed, or make an appointment to fit into someone else’s schedule.”
The online customers had a combined household income of around 30 percent above average and 65 percent of settled loans were borrowed in two names. Borrowers aged 30-39 made up 44 percent of loans.com.au customers, followed by the 40-44 years age bracket at 16 percent.
Overwhelmingly, customers choose loans.com.au’s flagship product, the Dream Home Loan, the product that took out the two Money awards.
The Dream Home Loan has a 100 percent offset and free redraw at an interest rate of 4.48 percent, 4.50 comparison, to 90 percent LVR.
Currently, it also comes with a value pack which includes a $150 conveyancing voucher, financial planning to the value of $500, free property reports, and Loan Tracker premium service, at no extra cost.
Mr Cannon said loans.com.au was pleased to have earned its track record of leading the home loan sector with low interest rates.
“Loans.com.au set out to operate as a lean machine and put all our cost savings into being able to offer the lowest interest rates to our customers,” he said.
“Lower overheads equal lower prices and this is the advantage of online in all sectors of retail. The home loan market is no different.”
Loans.com.au was launched in 2011 with a view to cementing its place in the burgeoning online sector. Its customers are made of up 37 percent home buyers and 53 percent refinancing.
Loans.com.au is a market-leading on-line lender. It offers award-winning finance products backed by Firstmac, one of Australia’s leading wholesale lenders with 35 years’ experience and $6 billion in mortgages under management. Loans.com.au has five stars for Outstanding Value from Canstar, and was named the Best Value Variable Home Loan, Best Value Full Feature Variable Home Loan, and People’s Choice Cheapest Home Loan 2014, by Mozo. It is Money magazine’s Best of the Best Cheapest Home Loan for 2014 and holds Financial Review Smart Investor’s Blue Ribbon Award for the Best Variable Rate Loan 2014.
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