In recent years, the rise of online-only and digital lenders has given Australians the ability to apply for home loans at the click of a button. With slick interfaces, fast approvals and competitive introductory rates, it’s easy to see the appeal.
But with ANZ Plus recently quietly lifting their digital home loan rates, it’s a timely reminder that convenience isn’t everything — and going direct to a digital lender might not be in your best financial interest.
If you’re a first home buyer, investor, or someone refinancing, here’s what you need to know before bypassing a mortgage broker in favour of a direct digital loan.
1. You Only See One Option — Theirs
Online lenders promote their own products, which means you’re seeing one lender’s offer — not a comparison across the market. You could be missing out on:
- A better rate from a smaller lender
- Loan products with more flexibility or offset accounts
- Special deals not advertised publicly
A mortgage broker compares across 30+ lenders — including digital, major banks and credit unions — to help you find the best loan for your situation, not just the one a single brand is pushing.
2. No Guidance = Higher Risk of Making Costly Mistakes
Applying for a home loan is one of the most important financial decisions you’ll ever make — and yet, with many digital lenders:
- There’s no human to speak to when you need guidance
- You’re relying on your own interpretation of terms and loan structure
- You’re on your own if your application hits a hurdle
Mistakes or oversights — like selecting the wrong loan type or misunderstanding LMI costs and more — can cost you tens of thousands over the life of the loan.
3. “Low Rate” ≠ Best Loan
Digital lenders often advertise sharp headline rates to attract clicks, but it’s not always the full story. Watch for:
- Higher revert rates after intro periods
- Lack of features like offset accounts or redraw
- Additional monthly or annual fees
- Poor flexibility with repayments or changes
With ANZ Plus increasing their rate recently, it’s clear that low rates can be short-lived — and without a broker to watch your back, you may not even know when it’s time to refinance.
4. Complex Situations Don’t Fit the Algorithm
If you’re self-employed, have multiple incomes, recently changed jobs, or want to structure your loan in a certain way (like splitting or using a trust), many digital lenders will simply decline your application.
Their systems are designed for “vanilla” borrowers. Anything outside their predefined criteria often means:
- Application rejected
- No ability to workshop your file
- No negotiation on policy
A broker, by contrast, can match you to lenders who understand your unique profile, explain your story, and often get policy exceptions approved.
5. No Ongoing Support or Strategy
A home loan is not a “set and forget” product. Rates move. Your life changes. Your goals evolve. But with most digital lenders:
- There’s no one proactively reviewing your loan
- You’re not alerted when better rates become available
- There’s no strategic support for future plans (like using equity to invest)
Mortgage brokers build long-term relationships. We don’t just get you the loan — we help you manage it and optimise your finances over time.
6. You Could End Up Paying More — Even If the Rate Looks Lower
When you zoom out, choosing a loan should come down to:
- Total cost over time
- Loan structure fit for your goals
- Flexibility to refinance or invest later
A slightly lower rate from a digital lender might seem appealing upfront, but if you’re locked into a rigid product with poor support or high exit fees, it could end up costing you more in the long run.
Case in Point: ANZ Plus Rate Increase
The recent rate hike by ANZ Plus — their app-only, digital lending arm — shows that even the big players in the online-only space are subject to market fluctuations and pricing changes.
Borrowers who applied direct with no broker support are now:
- Paying higher repayments
- Having to navigate refinancing options alone
- Possibly missing better deals available elsewhere
This is exactly why having a broker in your corner matters.
Convenience Shouldn’t Cost You Control
While online lenders offer simplicity, they don’t offer strategy. And in a market that’s constantly shifting — with rate hikes, policy changes and evolving lender appetites — the smartest borrowers don’t just chase the cheapest rate.
- They get expert advice.
- They compare the full market.
- They choose a loan that supports their future.
Thinking of Buying or Refinancing?
Before you hit “apply now” on a flashy website, let’s have a quick chat. At Base Home Loans, we help you make informed decisions, compare across the entire market, and secure a home loan that works harder for you — now and in the future.
Disclaimer: The information provided on this blog is for general informational purposes only and does not constitute financial or professional advice. While we strive to provide accurate and up-to-date information, mortgage laws and regulations can change, and individual circumstances may vary. We recommend consulting with a qualified financial advisor or mortgage broker to assess your specific situation and needs. Base Home Loans is not responsible for any actions taken based on the content of this blog. Always conduct your own research and consider seeking professional advice before making financial decisions.
