Interview with Marie Mortimer: Managing Director of loans.com.au
The following interview is with Marie Mortimer, Managing Director, loans.com.au. Loans.com.au is an online home loan company, established itself with the aim to be Australia’s leading online lender. Marie Mortimer discusses their current home loans on offer and the current state of the Australian home loan market.
Home Loan Finder: What is the major difference and advantage for consumers in considering a home loan from Loans.com.au?
Marie Mortimer: At loans.com.au we are a serious alternative to the major lenders. We offer very competitive interest rates fully-featured products which add up to great value our customers. In fact, we have just won a Canstar 5 Star award for exceptional value.
We allow a customer to apply online in their own time. We pride ourselves in having quick turnaround times and offer a fast pre-approval, usually same day.
We keep our costs down and pass the saving through to our customers. We don’t have an expensive branch network like the traditional lenders and we don’t pay broker commissions. We have a state-of-the-art, in-house infrastructure allowing us to pass these efficiencies on to the customer and provide exceptional customer service.
Home Loan Finder: Loans.com.au recently announced a fixed rate of 6.29% p.a. for 2 years with the Dream Loan Express Fixed home loan – how much of a saving is this offering compared to the average fixed rate home loan in market?
Marie Mortimer: There are so many different fixed products in the market at the moment. Using a $300,000 loan amount, we looked at the 2 year, fixed rate offered by one of the major banks at 6.44%. However, they charge an establishment fee of $600 and a monthly fee of $8, pushing their comparison rate up of 7.13%.
We compared this to our Dream Loan Express Fixed at 6.29%, with no application fee and no annual fee.
A customer can save $77,949 over the life of the loan, which is astounding.
We always tell our customer to check the comparison rate, because while you think you might be getting a good interest rate deal with the major lenders, you have to make sure you check the additional fees and charges.
Home Loan Finder: Should Australians be entering in to a fixed rate home loan?
Marie Mortimer: At loans.com.au we understand that everybody’s financial situation is different and people have very different risk profiles. We recommend that customers should do their homework and assess their personal circumstances.
Some people like the security of knowing their exact repayment amount each month while other people have the flexibility to move with the market. There are other people that sit in between and split their loans so they pay part fixed and part variable.
At loans.com.au we suggest to our customers that they put together a budget and run different scenarios depending on different ways an interest rate can move, to work out their tolerances. From that they can decide which product is best for them with regards to their personal financial situation and risk profile. At loans.com.au we offer both very competitive fixed rate and variable rate products.
Home Loan Finder: What advice would you give to home buyers looking to refinance in the current economy? How can they ensure they find the best loan to help them pay off their mortgage and not be weighed down by ongoing fees?
Marie Mortimer: The lending market at the moment is very good for people refinancing. We suggest that anybody who has had a home loan for a few years should be shopping around to find the best deal. They should definitely check the comparison rates of their home loan as a matter of priority and compare it those available in the market at the moment.
A comparison rate is a true indication of the actual cost of a home loan. It takes into account any fees and charges over the life of the loan.
At loans.com.au we have very will priced comparison rates, for example our DreamLoan Express has an interest rate of 6.69% per annum and only a 6.70% comparison rate. Our interest rate and comparison rate are so close, and low, as we have no application fee and no annual fee.
We have seen some of our competitors offering low interest rate home loans, but their comparison rates are through the roof. We are very passionate about customers understanding and using comparison rates. We care concerned that many Australian’s have still not been educated on how comparison rates work. They might think they are getting a deal on interest rates but they haven’t weighed up the true cost of their home loan.
Home Loan Finder: What advice can you offer to first time home buyers looking to enter the market?
Marie Mortimer: If you’re a first home buyer and want to enter the market, you really need to sit down and assess what you can afford. Look at your income and put together a budget to figure out what money you can afford to make on repayments. Also, look at how much deposit you have saved.
It doesn’t hurt to speak to a lender to walk through your particulars, as they can pretty easily tell you how much you are able to borrow. Our staff at loans.com.au do this all the time, at no cost and with no obligation.
Once you know how much you can borrow, you can then really start to look for a property in your price bracket. We give people what is called a “preliminary approval”, which is a letter confirming how much we can lend you. As we don’t have an application fee, we provide preliminary approvals free of charge, subject to you finding a property. When you find a property, we proceed to the next stage of getting a valuation and working to get you into your new home.
Home Loan Finder: More broadly, what do you think consumers should be doing now to better manage their finances and easing the cost of living in the current economic climate?
Marie Mortimer: Given the current economic climate, consumers should look at their expenses and assess where they can save money. If you have a home loan, you should be how much it is costing you and if it is actually the best loan for you.
Try using one of the many free comparison calculators out there to enter the details of your current loan and then compare that a cheaper loan. The savings from switching loans can be incredible.
We did a recent calculation on a $300,000 variable rate loan where one of the major banks was charging 7.81% per annum, an application fee of $600 and a monthly fee of $8. We compared that loan with our variable Dream Loan Express at 6.69% with no upfront fees or annual fees. The customer could save $85,503.94 over the life of the loan by switching to loans.com.au. That is an incredible saving.
Home Loan Finder: What can consumers expect from Loans.com.au in the future to see it remain one of Australia’s most competitive lenders?
Marie Mortimer: Loans.com.au has a mission to be Australia’s best online lender. Our business model is so innovative through our systems and process. With our low costs we can pass some exceptional savings on to Australian’s in the market for a home loan. We are set to be in the market long term. We have a commitment to innovation that delivers a competitive alternative to the traditional, bricks and mortar lenders. We are very passionate about this.
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Top Home Loans
| Home Loan | Details | Interest Rate (p.a.) | Comp Rate^ (p.a.) | App Fee / Ongoing Fee | Max LVR | Min & Max Borrowing | |
|---|---|---|---|---|---|---|---|
 Loans.com.au - Dream Catcher | A home loan offer with a $0 application fee and one of the lowest available home loan interest rates. | 5.85% | 6.21% | $0 / $375 | 80% | $50,000 / $750,000 |
 
|
 Bankwest Online Home Loan | A low interest rate home loan with a $0 application fee and ongoing maintenance fees. This offer is exclusively available by applying online. | 5.97% | 5.97% | $0 / $0 | 80% | $100,000 / $1,000,000 |
|
 Illawarra Home Loans Bank Beater Home Loan | A low variable rate, beaten down even further by 0.05% p.a. after 5 years. | 6.07% | 6.35% | $0 / $345 | 90% | $250,000 / $1,000,000 |
|
 State Custodians Mortgage Company Standard Variable Offset Loan | Awarded Mortgage of the Year 2012 – this multi-award winner features 100% offset and a loyalty 0.25% rate drop after 5 years. | 6.02% | 6.23% | $0 / $345 | 95% | $150,000 / $1,000,000 |
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