Not too sure about OneDirect but I'm a MyRate employee, I've come across this post and I just wanted to clear up a few things that I think were not fully accurate from the discussion above:

– Ours isn't a "no frills" home loan – that would probably be a Basic Variable home loan. MyRate and OneDirect are Standard Variable home loans both offer virtually all the regular features such as extra repayments, line-of-credit, split loans, redraw etc. The only feature I'm aware of that we don't have is an offset account.
– Post settlement support – I doubt any of the people who said our post-settlement support was dismal have ever spoken to a customer. It's a bit self-serving for my to say that it's great because that's only what you'd expect – however there's just no reason to think that a smaller company will have poorer customer service than a big bank – there's plenty of companies with good and bad service whether they are small or large. I suggest if you are considering MyRate or OneDirect you call their customer service line and see how we compare with the banks in terms of how helpful and quick the staff are to answer your questions – if we're worse then we certainly don't deserve your business!
– Although the costs are deductible that's certainly no reason to settle for a higher rate.
– We are only mortgage insured if the LVR is over 80%, as is almost any prime lender, and I'm almost certain it's the same for OneDirect.

Michael Fridman
MyRate
http://www.myrate.com.au