Loans.com.au is an online-only lender that’s fully owned and funded by Firstmac. Firstmac is a privately owned non-bank lender that has been in operation for more than 30 years.

Their head office, loan specialists, credit team and the customer care team are all based out of Brisbane.

Due to not having a branch network and lower overheads, they offer sharp interest rates for new customers.

So, how do Loans.com.au compare with other lenders?

How do Loans.com.au’s home loans compare?

What home loan types do they have?

Loans.com.au offers a few different options for borrowers. They include:

• Smart booster home loans which are their introductory honeymoon rate product for loans up to 80% of the property value. It is a special interest rate discount offered for the first year or two of your home loan, allowing you to get a headstart on your repayments. After the honeymoon period ends, it then reverts to a higher interest rate. The loan is limited to 80% LVR and the maximum loan amount is $1 million.
• Smart home loans are their most popular home loan. It is a home loan with a competitive interest rate and no ongoing fees. This home loan is limited to 90% LVR.
• Zip home loans come packaged with a $5,000 visa debit card and no ongoing fees.
• Construction and fixed home loans.

Generally, they have minimal ongoing fees on their home loans however, initially when setting up the loan, you’ll be paying a $300 settlement fee, $220 (or at cost) valuation fee, $300 discharge fee, $250 discharge documentation fees, and government fees at cost.

Interest rates: New vs existing customers

Loans.com.au offers some of the best introductory rates (usually for 1 or 2 years) to attract new customers, after which customers are put on a higher rate known as the roll-over rate.

This creates a problem where existing customers end up paying a much higher interest rate than new customers.

Unfortunately, the discounts offered to existing customers are nowhere near their introductory rates, leaving customers with no option but to refinance their loan to another lender after the intro period.

How are loans.com.au’s construction loans?

Their construction loans for both owner-occupiers and investor features:

• Interest only during the construction stages.
• 5 stages/progress claims and progress valuations.
• You only pay interest on the amount drawn down.

Before applying for loans.com.au’s construction loan, ensure:

• The land purchase is finalised.
• A licensed master builder has been selected.
• Building plans are set and ready.
• A copy of the fixed HIA/MBA building contract is read.

Once the final stage of construction is completed, the loan rolls over to their variable rate home loan.

Note that the building contract needs to be a fixed price contract other building contract types such as ‘cost plus construction loan’ are not accepted.

Tips for applying with loans.com.au

• Constantly monitor your interest rate to ensure you’re getting the best rate and that rate cuts are being passed on to you in full.
• Unless everything about your situation is straight forward don’t bother applying with most online lenders.

We believe Firstmac is an ethical business; however, several online lenders in the past have offered low rates to new borrowers then put up the interest rates for older borrowers.

Compare loans.com.au to other lenders

Still not sure which is the right lender for you?

Talk to one of our specialist mortgage brokers at Home Loan Experts.

We’ll first discuss your situation, complete a pre-assessment and find a couple of suitable lender options for you.

Give us a call on 1300 889 743 or fill in our free online enquiry form.