Digital and neobank home loans

Digital challenger banks are gearing up to give you more control of your mortgage, and maybe lower repayments too.

The rise of neobanks, also known as digital banks, has already threatened to disrupt the way Australians transact and save, and digital banks appear poised to make inroads into other areas of financial service. That includes home loans.

So what exactly are neobanks, and how might their home loans differ from those offered by traditional lenders?

Which digital lenders offer home loans?

Here are all the neobank and digital lenders we know have launched or are planning to launch mortgage products in Australia.

CompanyStatusProduct details
AthenaLiveAthena's refinance mortgages for owner occupiers and investors are now live, and should be ready for new borrowers soon.
86 400Coming soon86 400 will work with mortgage brokers and their own call centre.
XinjaTesting phaseThere is very little public information at this stage, but Xinja is live with other products. They're currently testing their mortgage product to a limited base.
RevolutComing soonWe don't know much right now, but Revolut has been shaking up the mortgage market in the UK.
VoltTesting phaseVolt has a full banking license, which is a major step. They haven't announced details about their mortgages yet.

What is a neobank?

A neobank is an online-only bank that offers its services digitally, usually through an app, rather than with physical branches. Because these banks don't have the overhead cost of operating branches, they can generally offer better rates on savings and loan products.

While there are many online-only financial institutions, what sets neobanks apart is that they don't operate on legacy systems. In other words, the technology driving digital banks has been built from the ground up and doesn't rely on any existing processes.

Learn more about Australia's digital banks

What about other online banks?

The term neobank feels a bit like a marketing term. And it kind of is. Neobanks are selling themselves as something different from the traditional banks. They're challenging the traditional finance world using data, apps and a digital-first approach.

There are a few other online lenders who are really competing with the neobanks (or more correctly, against whom the neobanks will compete). These include:

  • UBank. A digital-only brand owned by NAB, UBank is challenging traditional banks in the same way as neobanks.
  • Tic:Toc. A recent mortgage innovator, Tic:Toc has the fastest online application process around plus the backing of a traditional lender.
  • Loans.com.au. A completely digital lender, loans.com.au competes with low rate products and pride itself on personable phone and online service.
  • ING. A traditional lender, ING has been online-first for a while and have a very popular app.

Find more online lenders and their mortgage products on our online lenders page.

How do neobank products differ?

Neobank products are driven by the technology that underpins their platforms. At present, most Australian neobanks offer transaction accounts, savings accounts and/or prepaid spending cards. Many neobank accounts also allow customers to hold multiple currencies.

The real point of differentiation for neobanks comes in how users interact with them. Neobanks typically tie their products to apps that provide detailed tracking of their savings and spending. The apps can also categorise spending so users know where their money is going. This will help give customers a clear overview of their finances. Many utilise AI to help build savings and budgeting goals for customers, and some tout their apps' seamless payment systems.

Compare online home loans in the table below

Rates last updated May 27th, 2019
$
Loan purpose
Offset account
Loan type
Repayment type
Your filter criteria do not match any product
Name Product Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment Short Description
3.59%
3.59%
$0
$0 p.a.
80%
Enjoy flexible repayments, a redraw facility and the ability to split your loan. Plus, pay no application or ongoing fees.
3.59%
3.55%
$0
$0 p.a.
80%
Low variable rate mortgage for owner occupiers looking to switch. Refinancers only.
3.59%
3.62%
$500
$0 p.a.
95%
This mortgage combines a very sharp interest rate with a 100% offset account and it's available with a 5% deposit.
3.99%
3.95%
$0
$0 p.a.
80%
A competitive variable mortgage for investors looking to refinance. Principal and interest repayments. Refinancers only.
3.85%
4.18%
$500
$0 p.a.
95%
Apply for Easy Street fixed rate home loans and get a competitive loan with a fixed interest rate.

Compare up to 4 providers

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How do I switch to a neobank?

At present, many neobanks may not be able to fully take the place of your main financial institution. If you want to access neobank products, you can compare them in the table below. Some neobank products are not yet available, but you can sign up for the bank's waitlist to be among the first alerted when the products launch.

Updated May 27th, 2019
Name Product Product Status Pros Cons
Available

  • Spending insights

  • Bill detection and reminders

  • Available on Apple Pay, Google Pay, Samsung Pay, Fitbit Pay, Garmin Pay


  • Card delivery time

  • International ATM fee

A transaction account designed for your smartphone with spending categorisation, no international purchase or ATM fees and a round-up feature to help you save.
Available

  • Convenience

  • Security

  • Spending analysis and categorisation

  • Travel support


  • Card limits are restrictive

  • Apple Pay and Touch ID not supported

  • Cannot receive salary into

A prepaid Visa card that offers simple, low-cost global spending. Benefit from spending categorisation, low fees and security features.
Pre-beta

  • Low-cost global spending

  • Buy, hold, trade and transfer multiple fiat currencies plus cryptocurrencies

  • Receive spending notifications and insights into your transactions

  • Insurance options


  • Low fee-free ATM limits

  • No free express delivery

  • No interest earned on savings

A convenient global spending account that lets you hold multiple currencies, spend and transfer money in over 150 currencies and benefit from innovative money management features.
Available

  • Unlimited multiple accounts

  • Free withdrawals

  • Bonus interest up to 2.75% p.a.

  • Option of roundups


  • Bonus interest on balances up to $50,000 only

An innovative savings account that's tied to your goals. Create multiple accounts and automatically round up your spending from your Up transaction account.
Pre-beta

  • Low-cost spending in Australia and overseas

  • Hold and split bills in up to seven currencies

  • Access live chat 24/7 and lock and unlock your card in the app

  • Spending tracking and insights


  • Product is not available yet

  • No savings account option

A convenient, low-fee account that hold sup to seven currencies and charges no account-keeping fees.
Available

  • Bank-level security

  • Use your card at millions of locations, including online

  • Student benefits


  • Not a transaction account

  • No savings account option

  • Campus availability

A prepaid spending account designed for students. Benefit from low fees, spending insights and rewards tailored to how and where you spend.

Compare up to 4 providers

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Important Information*
Logo for UBank UHomeLoan Variable Rate - Discount offer for Owner Occupiers, P&I Borrowing over $200,000
UBank UHomeLoan Variable Rate - Discount offer for Owner Occupiers, P&I Borrowing over $200,000

Take advantage of a low-fee mortgage with a special interest rate of just 3.59% p.a. and a 3.59% p.a. comparison rate.

Logo for Athena Variable Home Loan - Refinance (Owner Occupier, P&I)
Athena Variable Home Loan - Refinance (Owner Occupier, P&I)

Low variable rate mortgage for owner occupiers looking to switch. Refinancers only.

Logo for RAMS Fixed Rate Home Loan - 2 Year Fixed Rate (Owner Occupier, P&I)
RAMS Fixed Rate Home Loan - 2 Year Fixed Rate (Owner Occupier, P&I)

Fix your interest rate for 2 years and lock in your repayments. Available with a 5% deposit.

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