You type “which online home loan provider should I use” into an AI assistant. Back comes a short list of names. But a list of names will not tell you whether any of them suits your deposit, your income or your plans to buy, refinance or invest.
More than 80% of home loans are now arranged through mortgage brokers, according to ASIC’s Commissioner. That matters because a broker can compare a panel of 50+ lenders side by side for you. In most cases there’s no broker fee to pay because the lender pays the broker.
In this post, we cover why a list of lender names will not tell you much, how your deposit, income and loan purpose decide most of it, which features matter, what a comparison rate tells you, the questions to ask any online lender, where a broker fits, an illustration of two loans for one household, the warning signs in online lender lists and your next step.
Why a list of lender names will not tell you much
ASIC’s media release dated 13 October 2026 states that more than 80% of home loans are now arranged through mortgage brokers. Most borrowers already lean on someone else to sort the market. So why does a list of names still feel useful? Because names are easy to read. They just cannot answer your real question.
Two households on the same income can qualify for very different loans once deposit size, credit history and property type are counted. A lender that suits a first home buyer with a small deposit is often a poor fit for a self-employed borrower or an investor, even when both appear on the same page.
ASIC’s Report 840 reviewed 13 credit licensees across eight large mortgage broker groups. It found practices generally aligned with guidance, with room to strengthen loan recommendations, supervision and complaints handling. A name alone tells you little about fit, and it can quietly narrow your options. You need a choice of loans measured against your deposit, income and plans, not a ranking of providers.
This article gives you a sorting method, questions to ask any online lender and one worked illustration. No winners. No shortlist. Just a way through.
Your deposit, income and loan purpose decide most of it
Two households can earn the same $120,000 and borrow different amounts. Here is what shapes it.
Deposit first. Lenders generally charge lenders mortgage insurance (LMI) when your deposit is under 20% of the property value. That cost protects the lender, not you, so it is worth understanding before you compare providers. Some eligible first home buyers can use government-backed schemes that accept a smaller deposit. Not every lender participates, so the schemes change how many lenders can help and what you need to ask.
Income. PAYG borrowers are usually assessed on payslips and employer details. Self-employed borrowers may need recent tax returns and notices of assessment. The same income, treated two ways.
Income that moves is treated carefully too. Casual shifts, overtime, bonuses, commission and rent are often averaged or discounted, so ask each lender how it handles the parts of your pay that change month to month.
Loan purpose. Buying, refinancing and investing bring different documents and features, and refinancing adds valuation, discharge and timing questions a straight purchase does not have.
Then the realism check. Lenders test whether you could still manage repayments if rates rose, so your borrowing power is usually lower than a simple multiple of your salary suggests. Once those three are clear, the lender list narrows quickly.
Features that matter, and the ones that do not
Once your deposit, income and loan purpose are clear, the next job is sorting the features that shift your cost from the ones you can ignore.
Offset account. Think of it as a savings account attached to your home loan. The balance is subtracted from the loan when interest is worked out, so $20,000 sitting in offset means interest is charged on $20,000 less.
Redraw. A facility that lets you reach extra repayments you have already made. It is generally less flexible than an offset, so check the fees, the limits and how fast you can access the money.
Fixed, variable or split. A fixed rate sets your repayment for a set period, with limits on extra repayments. Variable moves with the market. A split holds some of each.
Fees and charges. Ask about upfront fees, ongoing account or package fees and discharge or exit fees. Small ones add up. $10 a month works out to roughly $3,600 across a 30 year loan, an illustrative figure.
Online service. Check the app, the application process and phone support hours. You want a real person answering when a valuation, a document question or a settlement problem needs sorting.
Extras. Extra repayment limits, repayment frequency (weekly, fortnightly or monthly) and whether the loan allows a repayment holiday or an interest-only period. Get those sorted before you compare anything else.
What a comparison rate actually tells you
A comparison rate bundles the interest rate with most upfront and ongoing fees into one percentage. Instead of weighing a 5.9% headline against a 6.1% headline, you compare the cost of two loans. That is the whole point.
It is a comparison tool, not a forecast. The number is worked out using a standard loan amount and term, so your repayments will differ once your deposit, loan size and actual fees are counted in.
Check what sits inside it. Some government charges and some fees are left out, so read the fee list next to the comparison rate rather than trusting the single number.
Advertised rates generally appear with a comparison rate and a warning beside them. That pairing is a nudge: a headline rate on its own tells only part of the story.
Ask for the comparison rate based on the loan amount you actually need. The standard figure may not reflect a very small deposit or a large loan. Once your own numbers are in, the gap between two loans can shift.
That is where the right questions come in.
Questions to ask any online lender before you commit
You have the comparison rate in hand. Now here are the questions to put to any online lender before you sign anything.
- Fees. What is charged upfront? What is the ongoing fee? What does it cost to discharge the loan? Is there a fee to fix part of it, or to switch later? Small charges add up: $10 a month is $120 a year.
- Features. Does the loan include an offset account? Can you split it between fixed and variable? How much can you repay extra before a fee applies?
- The interest story. What is the comparison rate for my loan amount? Does the loan have an introductory period? What rate applies when it ends?
- Policy fit. Who will be on the loan? How is my income assessed if I am self-employed or paid partly in bonuses? Does the lender accept the property type and location I am buying?
- Service and process. Who do I call when something goes wrong? During what hours are they available? How are valuations arranged? Which documents will you need from me?
- Disclosure. Ask how the person recommending the loan is paid. Could any commission influence what they put in front of you? That is a fair question, not a rude one.
Write the answers side by side, because the difference often shows up in a line you did not expect.
Where a broker fits and how brokers get paid
That last question about how the person recommending your loan gets paid is worth asking anyone, including a broker. Most Australians already do: ASIC’s media release dated 13 October 2026 states that more than 80% of home loans are arranged through mortgage brokers.
Why the share is so high comes down to comparison at scale. A broker with a panel of 50+ lenders can put options side by side against your deposit, your income and your plans. That fits the standard ASIC expects, where a recommendation has to be explained against your circumstances.
Time Home Loans works this way. In most cases there’s no broker fee to pay. The firm is paid commission by the lender, so ask for the detail of those arrangements before you proceed.
Support goes past the loan. Time Home Loans offers 7-day finance clauses for buyers (approval still depends on the lender), complimentary property reports and Time Concierge, a utility connection service for people moving house. Time Concierge is provided by Movinghub. Time Home Loans may receive a commission or referral fee if you use it. We help first home buyers, upgraders, refinancers, property investors and self-employed borrowers, with clients across Australia and a base in Brisbane.
One honest caveat: a broker can compare options and explain the trade-offs, but the right loan still depends on your objectives, financial situation and needs. Next, a worked example shows how those trade-offs land in dollars.
An illustration: two loans, one household
Say a couple buys a $750,000 home with a $150,000 deposit. They borrow $600,000 over 30 years. Every figure here is illustrative only.
Loan A charges no ongoing fee and has no offset account. Loan B costs $10 a month and includes an offset. That fee is $120 a year, or about $3,600 across the loan.
Now the offset earns its keep. Leave $20,000 sitting in it and interest is worked out on a smaller balance, so less interest is charged each month. Keep the money there and the loan can finish sooner. Every little bit counts.
Here is the twist. A loan with a lower advertised rate but no offset, capped extra repayments or a bigger ongoing fee can still cost this household more overall. One number rarely settles it.
The outcome depends on your rate, your fees, your repayments and how you actually use the loan. Lending criteria apply. No lender is named or ranked here on purpose, because the right structure matters more than the logo.
Warning signs to watch for in online lender lists
The illustration above shows why one headline number rarely settles it. Online lender lists deserve the same caution. Ask how the list was built and whether advertising or affiliate deals paid for placements.
Check advertised rates for strings: an introductory period that ends, a package fee you must pay to keep the rate, or a rate reserved for borrowers with a larger deposit. Treat speed claims carefully too. Valuation, document checks and settlement timing depend on your paperwork and the property, not the ad.
If an article talks about FHA, VA or HELOC loans, it is written for another country. Those are not Australian home loans. Missing detail is another red flag. A page that skips fees, a comparison rate or how the site gets paid may be hiding the numbers that decide your cost.
Finally, check licensing. Confirm the lender or broker holds an Australian credit licence or works under one. You can search the ASIC registers. If comparing this way feels slow, that’s where we come in. A broker can put options side by side and explain the trade-offs, with lending criteria, fees and charges applying.
Your next step
You now know what to watch for. The sorting itself comes down to a short method. Work out your deposit, your income and your loan purpose first. Then compare features such as offset, redraw, fees and repayment limits. Only then compare names.
Take the questions above to any online lender you shortlist and write the answers side by side on one page, so the differences are easy to see.
If comparing the market yourself feels slow, a broker can do it for you. Time Home Loans works with a panel of 50+ lenders and in most cases there’s no broker fee to pay. Time Home Loans helps with buying, refinancing and investing.
Book a complimentary chat to talk through your situation and see how the numbers look.
This article is general information only and does not take into account your objectives, financial situation or needs. Seek advice before acting. Lending criteria, fees and charges apply. Time Home Loans Pty Ltd ABN 53 161 695 012 is Credit Representative 529395 of outsource Financial Pty Ltd, Australian Credit Licence 384324.
