AcceleRates from Athena rewards borrowers as they pay down their home loan

Niko Iliakis

12 Aug 2020

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Fintech lender Athena has rolled out a new batch of home loans with an innovative pricing system that lets borrowers access cheaper rates as they pay down their loan.

Dubbed AcceleRates, the suite of products is available to owner occupiers and investors, and offers three price bands for loan to value ratios (LVR) of <80%, <70% and <60%. As borrowers progress through each tier, their interest rate will be automatically reduced.

While it’s not unusual for lenders to differentiate their rates by LVR, Athena is the first to introduce a dynamic pricing model of this kind in Australia.

Below is a rundown of the price tiers for owner occupiers and investors. The new rates will be available to new and existing customers from 30 September 2020. New customers who apply from today will settle with the new rates. 

Owner Occupier, Principal and Interest

• Athena Liberate 70% - 80% LVR: 2.54% p.a. (2.46% p.a. comparison rate*)

• Athena Evaporate 60% - 70% LVR: 2.49% p.a. (2.43% p.a. comparison rate*)

• Athena Celebrate <60% LVR: 2.39% p.a. (2.39% p.a. comparison rate*)

Investor, Principal and Interest

• Athena Liberate 70% - 80% LVR: 2.94% p.a. (2.87% p.a. comparison rate*)

• Athena Evaporate 60% - 70% LVR: 2.89% p.a. (2.83% p.a. comparison rate*)

• Athena Celebrate <60% LVR: 2.79% p.a. (2.79% p.a. comparison rate*)

Promoted

Athena Liberate Variable Home Loan
  • 2.54% p.a. variable rate (2.46% p.a. comparison rate*)

  • Dynamic pricing model rewards borrowers as they pay down their loan

  • Free extra repayments and redraw facility

Fintech lender Athena Home Loans has been winning over borrowers left and right with its low rates and innovative approach to lending, and its new AcceleRates model is sure to turn a few more heads. The Liberate home loan offers owner occupiers borrowing between 70% and 80% of a property’s value a variable rate of 2.54% p.a. (2.46% p.a. comparison rate*), which drops to lower rate tiers as the loan is paid down. It also comes with a number of helpful features, including the ability to make free extra repayments and access a free redraw facility.

Promoted

Athena Evaporate Variable Home Loan
  • 2.49% p.a. variable rate (2.43% p.a. comparison rate*)

  • Dynamic pricing model rewards borrowers as they pay down their loan

  • No application fees or ongoing fees

For borrowers with a deposit of 30-40% saved up, the Athena Evaporate home loan is well worth a look. Along with a competitive 2.49% p.a. variable rate (2.43% p.a. comparison rate*), the loan also offers free extra repayments, plus access to a redraw facility if you ever decide those funds would be better served back in your pocket. What’s more, Athena’s automatic rate discount allows you to access cheaper rates the closer you get to paying off your loan.

Promoted

Athena Celebrate Variable Home Loan
  • 2.39% variable rate (2.39% comparison rate*)

  • No application fees or ongoing fees

  • Free extra repayments and redraw facility

If you’ve saved up more than 40% of a property’s value, you’ll be able to take advantage of a super low 2.39% variable rate (2.39% comparison rate*) with Athena’s Celebrate home loan. There’s also plenty of flexibility on offer, with the ability to make weekly, fortnightly or monthly repayments, plus pay down your loan faster and access a free redraw facility if you wish. And in keeping with Athena’s commitment to helping Aussies save, the Celebrate home loan doesn’t come with any application fees, ongoing fees or discharge fees.

*WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for the amount and term you entered.

**Initial monthly repayment figures are estimates only, based on the advertised rate, and a loan of $500,000 repaid over 25 years. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

Interest only options are also available for both types of borrower. Owner occupiers with an LVR of up to 80% will receive a variable rate of 3.04% p.a. (2.68% p.a. comparison rate*), while investors with an LVR of the same will receive a 3.04% p.a. variable rate (2.93% p.a. comparison rate*).

CEO and co-founder Nathan Walsh said that Australians often have to endure frustrating and drawn out negotiations when trying to secure a lower rate with their lenders.

“That’s why Athena wants to motivate, encourage and reward customers for paying off their home loan and also have peace of mind knowing that once they hit the lower tier, we will drop their rates for them automatically,” he said.

“What this also means is even greater savings for customers. On average we are saving customers who switch to us $60,000 over the life of their loan. With our new AcceleRates pricing model many of these customers will now save $70,000.”

COO & co-founder Michael Starkey explained that customers who sign up for an AcceleRates home loan will spend the bulk of their mortgage paying the lowest interest rate.

“If they start out at the 80% LVR tier and pay the minimum on a Principle and Interest loan, they would hit the 70% LVR tier in only 4 years and 2 months. From there they would hit our lowest rate in just 3 years and 9 months where they would stay for the rest of the loan,” he said.

Along with a few more features, such as the ability to make free extra repayments and access a redraw facility, borrowers can also benefit from Athena’s “Automatic Rate Match,” which guarantees existing customers get the same rate as new customers on a like for like loan.

For a look at how the offerings from Athena stack up against others on the market, be sure to visit our home loans comparison page, where you’ll be able to filter your search by rate and type.

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