MyRate Education Centre

Online Lenders

The benefit of an online lender is that you receive lower or no fees, low interest rates, and faster turnaround, as online lenders do not have to pay for big branches, however there are differences between the various providers. When choosing an online lender, take the following points into consideration:

1. Who are the people involved? – Will you have access to real experienced consultants who will help guide you and answer any questions from application to settlement? Is the management team formed from experienced professionals?
2. What accreditations and awards does the lender have? – Is the company a member of recognised industry groups? Has the company won any well known awards?
3. Who is the funding provided by? – Is it a large international banking institution or a fly by night garage operation.
4. Is the website secure? – Make sure that the website is secure so that your information is kept private. The website should be protected by third party verification - look for a trusted website, or the secure certificate icon to be sure.
5. How flexible are the products? – Make sure you are familiar with the features of several loan products. Some lenders may be more suitable to your needs by allowing you to split your loan amount between more than one type of loan product.
6. Be wary of unnecessary fees – Sure the rate might sound great, but remember to take into account the costs and fees associated with your home loan such as settlement and closing costs.
7. What do their customers say? – Do low rates mean thin service? Check out the feedback or testimonials from previous customers to see how good the service really is.
8. What happens if the company goes bankrupt? The risk does not lie with you, the borrower, but instead lies with the lender. If the company goes bankrupt, no-one can come claim your house. Your situation will not change - you will end up paying your loan off to the courts.