- loans.com.au is an online, non-bank lender
- It provides home loans to owner occupiers, investors, refinancers, and self-manager superannuation funds
- It can offer competitive interest rates on the basis of its no branches/no brokers business model
As one of Australia’s first online lenders, loans.com.au prides itself on its innovative and people-centric approach to lending. The entity was founded as a ‘direct to retail’ arm of Brisbane company Firstmac, one of Australia’s largest privately owned non-bank lenders and an associate of Savings.com.au.
By conducting 100% of its business online, loans.com.au is able to cut costs on things like mortgage broker commissions and maintaining branch offices.
Without these overheads, the online lender says it can ensure the savings are passed directly to its customers in the form of competitive interest rates. With around $6 billion in loans under management, loans.com.au has a larger loan book than many small banks, credit unions, and building societies.
loans.com.au home loan interest rates
Here’s a snapshot of loans.com.au’s current interest rates for owner-occupier home loans:
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Extra Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.94% p.a. | 5.98% p.a. | $2,978 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | ||||||||||
6.04% p.a. | 6.08% p.a. | $3,011 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | ||||||||||
6.24% p.a. | 6.28% p.a. | $3,075 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | ||||||||||
6.24% p.a. | 6.28% p.a. | $3,075 | Principal & Interest | Variable | $0 | $530 | 80% |
| Promoted | Disclosure | ||||||||||
6.34% p.a. | 6.38% p.a. | $3,108 | Principal & Interest | Variable | $0 | $530 | 90% | |||||||||||||
6.44% p.a. | 6.42% p.a. | $2,683 | Interest-only | Variable | $0 | $530 | 80% |
| Promoted | Disclosure | ||||||||||
6.54% p.a. | 6.29% p.a. | $2,725 | Interest-only | Variable | $0 | $530 | 80% |
| Promoted | Disclosure | ||||||||||
6.59% p.a. | 6.19% p.a. | $3,190 | Principal & Interest | Fixed | $0 | $530 | 90% | |||||||||||||
6.59% p.a. | 6.23% p.a. | $3,190 | Principal & Interest | Fixed | $0 | $530 | 90% |
| Promoted | Disclosure | ||||||||||
6.64% p.a. | 6.14% p.a. | $3,207 | Principal & Interest | Fixed | $0 | $530 | 90% |
loans.com.au home loan features
Loans.com.au offers home loans for owner-occupiers, refinancers, investors, and self-managed super funds (SMSFs). Let's run through its main home loan products.
Variable Bare Home Loan
- basic home loan
- no monthly or ongoing fees
- unlimited free redraws
- flexible repayments options (weekly, fortnightly, or monthly)
- principal and interest (P&I) repayments
- streamlined application process
- competitive interest rates
- borrow up to 90% loan-to-value ratio (LVR)
- available to purchasers or refinancers
Variable Bold Home Loan
- offset sub-account available
- principal and interest (P&I) or interest-only (IO) repayments
- unlimited free additional repayments
- no transaction fees for redraws
- no monthly or ongoing fees
- weekly/fortnightly/monthly option for P&I repayments (monthly for IO repayments)
- variable or fixed rate option (fixed rates up to five years)
- borrow up to 90% LVR
- streamlined application process
- available to purchasers or refinancers
See also : Home loan offset account calculator
ZIP Home Loan
- comes with interest-free Visa debit card ($5,000 limit)
- no monthly or ongoing fees
- P&I repayments
- fee-free redraw of additional repayments
- account access via Smart Money app
- bill payment via BPAY (unlimited free)
- borrow up to 80% LVR
- weekly/fortnightly/monthly repayment option
- available to purchasers or refinancers
See also: Guide to loans.com.au's SMSF loans
Why choose a loans.com.au home loan?
"loans.com.au's processes are quick and simple, as they should be. For all our loans, you can find out if you pre-qualify for a low-rate loan in just minutes.
"By keeping our interest rates low and revolutionising the loan application process, we keep on winning awards for our products, innovations, and our Australian-based customer service year after year.
"At every step of the way, you'll talk to a real person from our friendly team of lending specialists who are there to help you.
"We understand that nobody really wants a loan, rather they want a home to live in, a new car to drive, their next investment property, or to save thousands on an existing loan."
Pros & Cons of a loans.com.au home loan
Pros
- Competitive 'no frills' interest rates: These can be particularly attractive for those with up to 80% LVR
- Streamlined digital application process: Online application aims for fast approval times, generally between three to five days
- Flexibility covered by loan options: Home loan products are designed to meet varying borrower needs, including offset option, variable and fixed rates, PI & IO payments, etc.
- Specialist support: Offers a team of well trained, Australian-based support staff
- Family-owned business: Does not have to cater to shareholders and also supports Australian communities and charities
- Provides loans up to 90% LVR: Will approve loans to eligible borrowers with smaller deposits
- Offers a 'refer a friend' program: Existing borrowers and a referred new borrower each receive $1,000 when the new borrower settles their home loan
More than a lender
Loans.com.au operates a dedicated Women, Children & Community Program, making 'giving back' a central priority of its business ethos.
It provides:
financial support via official sponsorship
employer-supported volunteers through its staff giving time to charities and fundraising initiatives
donating items
raising awareness for local charitable causes which benefit women, children, and communities throughout Australia
Cons
- Does not have branches: No face-to-face service for those preferring in-branch support
- No broker access: Loan are not available through brokers so applications must be self-managed or completed with staff support online or via telephone
- Relatively strict lending criteria: Offers high LVR loans (up to 90%) although lending rules are generally firm
Savings.com.au's two cents
Loans.com.au covers most borrower needs, providing a competitive basic home loan for those prioritsing a low interest rate and an offset product for those wanting more flexibility.
The online-only lender can keep its rates low by not having to pay broker commissions. However, this may represent a trade-off for borrowers looking to outsource the application process or preferring an ongoing in-person service. Loans.com.au provides a team of Australian-based support staff in a bid to ease such concerns.
Loans.com.au was one of the first Australian operators in the digital lending space and has finely honed its products and services after many years of experience. It has won a considerable number of awards for its various offerings since its launch.
Its home loans are worth considering for borrowers who tick the eligibility boxes and are comfortable conducting their financial affairs digitally.
How to apply for a loans.com.au home loan
Applying for a home loan is relatively simple with loans.com.au’s online application process.
Eligibility criteria
You must meet the lending requirements of loans.com.au before applying for a home loan. Generally, you need to:
be above 18 years old
be an Australian resident
be employed or earning a steady income
demonstrate a strong capacity to repay the loan
have a good credit history
have a maximum LVR (loan-to-value ratio) of 90% (depending on the loan)
If you fit all the requirements, you can apply for a home loan online or book an appointment with a lending manager.
Documents needed
loans.com.au may need the following documents when you apply for a mortgage:
Personal identification such as your driver’s license, passport, or a state or territory issued photo ID
Proof of income
For employees, you’ll need to present two of your latest payslips, an employment contract or letter from your employer containing details of your employment, such as basic salary allowances, and length of employments. You can also present three months of bank statements proving your income.
For the self-employed, you’ll need to provide an individual tax return (not older than 22 and a half months) and accompanying Australian Taxation Office notice of assessment or business tax return, profit and loss statement and balance sheet (not older than 22 and a half months)
- Rental income (if applicable) in the form of a letter from a real estate agent as well as a current residential tenancy agreement (not a private lease agreement), bank statements confirming rental payments for at least three months, and a tax return with rental income included
Proof of other sources of income such as superannuation, dividends, foreign income, and other government income sources
- List of assets including property, motor vehicles, investments, superannuation, savings, professional equipment (such as tools of trade), home contents (the insured amount)
- List of liabilities including outstanding debts from credit cards and other ongoing loan repayments such as cars and personal loans
- Everyday living expenses including regular utility bills, council rates, body corporate and maintenance payments, as well as transaction accounts and credit card statements showing expenditure on groceries, lifestyle expenses, and insurance
- Ongoing rental expenses (if you plan to continue renting after you have purchased a home)
See also: What you should know about rentvesting
Frequently Asked Questions
Yes, loans.com.au offers an offset sub-account on its Variable Bold Home Loan product. Having an offset attached to your home loan can greatly reduce the interest you pay, helping you pay off your loan faster.
It's worth noting loans.com.au's 'offset' account is a sub-account of the home loan, not a separate deposit account. As such, any funds in the account are not covered by the federal government's deposit guarantee. Also, the offset account can't have a credit balance, that is, a higher balance than the loan amount.
Yes, existing customers can negotiate better rates. It requires contacting loans.com.au directly and asking for a lower interest rate.
Some borrowers may be in a better position to negotiate a lower rate such as if they have strong equity, a good repayment history, or are considering refinancing from an existing home loan. It is always worth asking the question.
Some applications can be approved in two to three days, depending on the customer's individual circumstances and if all correct documentation has been provided.
But it's not a 'one size fits all' number with approval times differing according to individual applicants. Having the right documentation ready to go helps to progress the application as quickly as possible.
Yes, loans.com.au home loans are available to purchasers and refinancers.
Loans.com.au will require formal documentation covering:
- personal identification
- proof of income
- list of assets
- list of liabilities
- other information depending on individual circumstances
Document requirements are outlined in the article above or available via loans.com.au's Home Loan Application Checklist.
Savings.com.au and loans.com.au are both associates of Firstmac