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Amateur trader Yan Qin checks her smartphone for stock reports in New York, December 7, 2010. Reuters/Shannon Stapleton

Switching to an online lender allows up to $3,184 savings per year, according to Mozo. But Australians’ unfamiliarity with online lenders and lack of face-to-face customer service are keeping those savings away.

The financial comparison website has looked into 504 home loans from 89 providers. It found almost thirds of the best-value home loans on the market are from lenders online, which were 0.7 per cent cheaper on average than the big four for a 25-year, $350,000 loan.

“When you look at the room for savings, it’s well worth looking beyond the traditional bricks and mortar lenders,” Mozo director Kirsty Lamont said. However, a survey that involved 1000 respondents indicated that Aussies are less likely to apply for a home loan through the internet than other financial products.

The survey has found that Australians are more likely to buy car insurance online than a home loan. Lamont revealed that only 27 percent of their respondents would consider taking out a home loan online. Meanwhile, more than half of those who participated in the survey are okay with purchasing a car insurance, credit cards and personal loans even without face-to-face interaction.

Lamont said less than half of consumers would surprisingly consider getting a home loan with an online lender regardless of the major savings. News.com.au notes that the biggest barrier for applying for a home loan online is lack of familiarity with online lenders.

Fifty-six percent of those who responded to the survey claim they do not know enough about online readers, while 43 percent would rather communicate their needs face-to-face with a mortgage expert. More men than women say they will consider applying for a home loan online. Half of respondents who said they would aged between 25-44.

Lamont confirmed that unfamiliarity with online lenders is main barrier against access to better home loan deals. “Many borrowers who go through a bank or mortgage broker often don’t get to see the full spectrum of offers available and may be unsure of what rates are available elsewhere, especially in the online space,” she said.

Lamont explained that several online lenders can pass on savings to consumers because they have fewer overheads compared to traditional banks. iMortgage, loans.com.au and UBank are online leders that scored the highest marks in Mozo’s Experts Choice Awards. Non-Bank Home Lender of the Year was awarded to Homestar. Per finder.com.au, those who consider purchasing home lone online can get online-only home loan from a regular bricks and mortar lender or home loan from an online brand.

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