79% of online home loan borrowers are choosing smaller lenders

Although the big four banks hold 80% of the residential mortgage market, the new breed of online borrowers is opting to go with smaller lenders.

In fact, 79% of Lendi’s borrowers in the last 12 months chose a lender other than one of the big four banks.

The finding comes from analysis of a sample of 2,800+ home loans settled on the Lendi platform over the 12 months to November. We put this down to online borrowers responding to choice and uncovering big savings on their repayments along the way.

For example, if you look at the average Australian home loan of $371,100, households could be saving up to $162,458 over a 30-year loan by negotiating or switching lenders to get the best rate available. That’s a significant amount of money!

There’s a huge range of loan products available in the market but the key is being able to break it down to easily compare rates and features to find the best deal.

And that’s where the Lendi platform comes in. Hundreds of thousands of Australians have already used the Lendi platform to find out how they can improve their financial position. Our smart technology searches home loans from more than 35 lenders and provide a shortlist of options suited to the individual’s circumstances. From application to settlement, home loan specialists are on hand to guide borrowers through the mortgage process.

My advice? Spend a few minutes investigating and you could potentially save yourself thousands.

• Note: Calculations based on rates from 37 Australian banks and non-bank lenders including the Big Four (as at 28 November 2017). The difference between the most expensive interest rate (5.67%) and cheapest interest rate (3.64%) for the average home loan was then aggregated over the life of a 30-year P&I loan.