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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.

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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 an unbiased 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.

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  • 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.

Tags: refinance, new purchase, david hyman

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Important legal stuff

Lendi is the trading name of Lendi Pty Ltd (ACN 611 161 856, Credit Representative 518849), a related body corporate of Auscred Services Pty Ltd (ACN 164 638 171, Australian Credit Licence 442372). We will never sell your email address to any third party or send you nasty spam, promise.
Lendi is a privately owned and operated Aussie business. Our mission is to provide Aussies with the right experience when choosing a home loan from our panel of lenders including ClickLoans, a related body corporate of Auscred Services. Although Lendi compares over 1600 products from over 35 lenders, we don't cover the whole market or compare all features and there may be other features or options available to you. While Lendi is 40% owned by founders and employees, we have also been supported by some great minority shareholders including Bailador, Macquarie Bank Ltd and a number of Australian sophisticated investors. We have an independent and founder led board.
WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. The comparison rates are based on a loan amount of $150,000 over a loan term of 25 years.
EXAMPLE: This example is current as at 20th October 2016. A Click Loans Online Principal and Interest Loan of $150,000 over 25 years has monthly repayments of $767. This is calculated based on the interest rate of 3.69%, comparison rate of 3.69%, upfront fees of $0 and annual fees of $0.
IMPORTANT INFORMATION: Loan terms of between 1 Year and 40 Years are available subject to lender and credit criteria. Maximum comparison rate will not exceed 14.99% (see comparison rate warning above). Any calculations or estimated savings do not constitute an offer of credit or a credit quote and are only an estimate of what you may be able to achieve based on the accuracy of the information provided. It doesn't take into account any product features or any applicable fees. Our lending criteria and the basis upon which we assess what you can afford may change at any time without notice. Savings shown are based on user inputted data and a loan term of 30 years. All applications for credit are subject to lender credit approval criteria.
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