flagFounded: To be confirmed

businessOwned by: Likely Macquarie, ING or one of the major banks

monetization_onFunded by: Retail deposits and wholesale capital markets

securityLMI Provider: To be confirmed

account_balanceLender type: Non-bank

Coles has not yet confirmed whether it will be launching a home loans business so keep an eye on this page for any updates.

Ever since partnering with GE Capital to offer personal loans and credit cards, rumours have been circulating as to whether Coles will also be entering the mortgage space.

Coles has remained tight-lipped on the matter but, if they were to launch, they’d have to come up with a really competitive offer for regular Australians to even take notice.

I mean, would you get a Coles home loan?


How would Coles home loans compare?

They’re great at

  • Cheap interest rates and loan establishment fees
  • Special deals for repeat store customers as well as people already signed up to their personal loan and credit card offering
  • Simple home loans with easy setup
  • Complete online application making it easier and faster to get a home loan
  • Low interest rates means it may be a good option for refinancing

But they’ve got some drawbacks…

  • Depending on which lender they partner with, Coles may restrict lending for certain property types and locations
  • Their “brokers” would be more like sales staff will likely lack skills in credit
  • There would likely be no branch access

How would a Coles home loan work?

We think that Coles would go about their home loan offering as they did with their petrol and current finance offering: by cross-selling.

Essentially, the more you shop, the cheaper the interest rate they will offer you and the better the loan terms will be.


Will Woolworths enter this space as well?

Speculation that Coles home loans were just around the corner reached its height when UK retailer Tesco launched its own suite of home loan products.

Soon after this, Coles’ closest competitor, Woolworths, applied for a banking licence and certain trademarks.

The bottom line is that we don’t know what Coles and Woolworths will do just yet but all signs point to yes and that’s actually great news for Australians.

It means more competition in the home loan space so banks are going to have to sharpen their pencils to offer cheaper rates, better products and better ongoing service in order to keep your business.


Don’t wait! Get a great deal tight now

We have nearly 40 lenders to choose from so our mortgage brokers can properly assess your situation and negotiate special pricing that isn’t offered to the general public.

Speak with one of our mortgage brokers by calling us on 1300 889 743 or complete our free assessment form today.

  • Dunckley

    What’s the easiest way to stay informed about this with your guys?

  • Hello Dunckley,

    You can simply bookmark this page and check it every now and then as any updates and developments will be updated as soon as possible. Alternatively, you can like our Facebook page for news on this as well as many more other topics:
    https://www.facebook.com/HomeLoanExperts/

  • Strauman

    What else should I consider aside from the interest rate on a home loan?

  • Hi Strauman,
    While interest rates are important, there is more to choosing a loan than just the rate. Bank know that almost everyone compares interest rates, however, you should also compare the LMI premium or the terms & conditions of their home loan. You can use our LMI calculator to see just how large the difference between the banks can be:
    https://www.homeloanexperts.com.au/mortgage-calculators/lmi-calculator/

  • Roadie

    I want to refinance in the next couple of months but I’m not sure if I should. What are the things that I should consider before I make a decision?

  • Hey Roadie,
    There are many benefits to refinancing your home loan but they depend on your goals. It all comes down to what you’re trying to achieve by refinancing. So please check out the refinancing your home loan page to find out what to consider as well as a lot of additional info that you may find helpful:
    https://www.homeloanexperts.com.au/home-loan-articles/refinance-home-loan/