Digital and neobank home loans

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

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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.
  • A completely digital lender, 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

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Rates last updated January 29th, 2020
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Name Product Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment Short Description Smart Home Loan - (Owner Occupier, P&I)
$0 p.a.
Get one of the lowest variable interest rates on the market and pay 0 application or ongoing fees.
Easy Street Fixed Home Loan - 2 Year (Owner Occupier, P&I)
$0 p.a.
Enjoy 2 year fixed rate with no ongoing fee and a 100% offset account. Available with a 5% deposit.
ME Flexible Home Loan Fixed with Members Package - 2 Year Fixed Rate LVR <= 80% (Owner Occupier, P&I)
$395 p.a.
Lock in a competitive rate for owner occupiers for two years. Comes with a 100% offset account.
ING Mortgage Simplifier Home Loan - $150,000 to $500,000 (LVR <=80% Owner Occupier, P&I)
$0 p.a.
This low, variable rate loan has no ongoing fees and a redraw facility. Requires a 20% deposit.
Easy Street Fixed Home Loan - 3 Year (Owner Occupier, P&I)
$0 p.a.
Enjoy 3 year fixed rate with no ongoing fee.

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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 January 29th, 2020
Name Product Product Status Pros Cons
Up Everyday Account

  • Spending insights

  • Bill detection and reminders

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

  • Card delivery time

  • International ATM fee

Exclusive offer: $5 bonus for new Up customers when you click through from Finder and create an Up account. A transaction account designed for your smartphone with spending categorisation and a round-up feature to help you save. No international transaction fees and no ATM fees in Australia.
Up Saver Account

  • Unlimited multiple accounts

  • Free withdrawals

  • Bonus interest up to 1.75% p.a.

  • Bonus interest up to 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.
86 400 Pay Account

  • Quick and easy sign-up process

  • Apple Pay, Google Pay, Samsung Pay, Fitbit Pay and Garmin Pay

  • Insights into your spending and saving habits

  • In-app bill detection and reminders

  • No account keeping fees

  • International transaction fees apply

  • ATM fees apply (fees can be avoided at 10,000 ATMs in Australia)

An everyday transaction account that allows you to link your existing bank account/s in the 86 400 app and see all your transactions in the one place. Enjoy spending tools and bill reminders.
86 400 Save Account

  • Bonus interest up to 1.85% p.a.

  • Can make withdrawals without losing interest

  • Insights saving habits, with a nudge each month you're not on track

  • No account keeping fees

  • If you don't earn the bonus interest, the standard interest is quite low

  • The $1000 per month deposit condition is higher than some other savings accounts

Link this Save account to your 86 400 Pay account and earn a competitive bonus interest rate each month you deposit $1000. You can withdraw from the account without affecting your bonus interest rate.
Xinja bank account

  • Create an account in minutes

  • Security features

  • Spending analysis and categorisation tools in the Xinja app

  • Low-fee travel money solution

  • No bank branches

The Xinja bank account is an everyday transaction account with zero ATM fees, zero account fees and no currency conversion fees.
Revolut Account
Limited availability

  • 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.
Pelikin Prepaid Card

  • 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.
QPay Prepaid Card

  • 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

Related Posts

Home Loan Offers

Important Information*
Logo for St.George Basic Home Loan - LVR 60% to 80% (Owner Occupier, P&I)
St.George Basic Home Loan - LVR 60% to 80% (Owner Occupier, P&I)

Online only cashback offer: Refinancers borrowing $250,000 or more can get a $4,000 cashback for their first application (Other terms, conditions and exclusions apply). Buyers and refinancers can get this competitive variable interest rate. Application fee waived for loans above $150,000.

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 2.84% p.a. and a 2.84% p.a. comparison rate.

Logo for Suncorp Back to Basics Home Loan - Better Together Special Offer $150k+ LVR<=90% Incl. LMI (Owner Occupier, P&I)
Suncorp Back to Basics Home Loan - Better Together Special Offer $150k+ LVR<=90% Incl. LMI (Owner Occupier, P&I)

Get one free online redraw per month and pay no ongoing fees. Application fees are waived for loans above $150,000.

Logo for Essentials - Variable (Owner Occupier, P&I) Essentials - Variable (Owner Occupier, P&I)

A competitive interest rate home loan with interest only options. Interest rate 3.04% p.a.
comp rate of 3.06% p.a.

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