Best value loan saves borrowers $56k

A home loan that can save borrowers more than $56,000 has been named Australia’s Best Value Home Loan by leading comparison site Mozo.

The Dream Home Loan from loans.com.au was announced this week as the winner of the Best Value Variable Home Loan and Best Value Full Feature Variable Home Loan categories, and was ranked third for the Best Value Variable First Home Buyers Loan.

Loans.com.au is no stranger to finance industry accolades, having held the Canstar Five-Star Rating for Outstanding Value since September 2011 and receiving the Money Magazine Best of the Best Cheapest Home Loan award for 2014.

“The Mozo Experts Choice Awards are very important because they take into account the feedback of customers across the banking and finance industry and we are very pleased to have been recognised,” said loans.com.au Managing Director, Marie Mortimer.

“It shows us that we are doing it right and it will spur us on to continue innovating and keep the pressure on the big banks.”

Mozo Director, Kirsty Lamont, said Mozo’s research found eight of the top 10 best value home loans were from online lenders, which were an average of 0.52% cheaper than the Big 4 banks for a typical loan of $350,000 over 25 years.

“Choosing this year’s gold medal winning loan from loans.com.au instead of the average Big 4 bank loan would save $2,256 a year - which equates to a whopping $56,400 over the life of the loan,” Ms Lamont said.

“When you look at just how much can be saved, Australians really should open their eyes to other providers beyond the traditional bricks and mortar lender or mortgage broker.”

Ms Mortimer said there was no secret formula for loans.com.au’s outstanding performance.

“The world over, the relationship customers want from their lender is changing and loans.com.au has taken early steps to cement its place online,” she said.

“Loans.com.au is all clicks, no bricks. Because we don’t have the overhead of a branch network to maintain we can pass on savings to our customers and offer the cheapest home loans.”

The Dream Home Loan has a comparison rate of 4.56 percent. It has no application fee, no monthly fees, no establishment fees, no ongoing fees, and a 100 percent mortgage offset facility.