Athena has just dropped a variable home loan rate below 2%
Online lender Athena has announced a number of cuts to its variable rate home loans today, including a 20bp reduction to its <60% LVR Celebrate Home Loan which now sits at just 1.99% (1.99% comparison rate*).
Coming into effect immediately, rate reductions of between 5-20bp will be applied across the different tiers of Athena’s AcceleRATES Variable Home Loan for both new and existing customers.
And according to Athena, its new 1.99% (1.99% comparison rate*) rate is now, in fact, the “...lowest fee-free variable home loan rate in the country.”
“Athena is out to show Australians that there’s a home lender on their side. With housing prices skyrocketing and Job Keeper finishing, many homeowners – who thought they scored a low rate – are now realising they have been locked in and paying for it with rate hikes and fees,” says Athena chief executive and co-founder, Nathan Walsh.
“We’re committed to giving our customers a great rate that stays great, and that includes our existing customers who instantly enjoy every rate we drop. Now is the perfect moment to pass on seriously compelling fee-free savings to customers, helping them continue to pay down their home loan faster.”
Here are some of Athena’s new rates for owner occupier and investors:
| Variable rate | LVR and borrower type | Cut |
| 1.99% (1.99% comparison rate*) | <60% - Owner occupier | 20bp |
| 2.09% (2.02% comparison rate*) | 60-70% - Owner occupier | 15bp |
| 2.19% (2.08% comparison rate*) | 70-80% - Owner occupier | 10bp |
| 2.39% (2.39% comparison rate*) | <60% - Investor | 15bp |
| 2.49% (2.43% comparison rate*) | 60-70% - Investor | 10bp |
| 2.59% (2.48% comparison rate*) | 70-80% - Investor | 5bp |
How do Athena’s rates stack up though?
Well, the 2.19% (2.08% comparison rate*) variable rate for owner occupiers now sits among the ten lowest variable home loan rates for <80% loan-to-value ratios (LVRs) in the Mozo database.
Furthermore, that rate’s a considerable 108 basis points below the 3.27% average variable rate in our database.
In terms of potential savings, the Mozo home loan repayments calculator shows that the difference between a rate of 2.19% and 3.27% on a loan of $400,000 being paid off over 25 years would equate to $220/month or $66,250 in extra interest over the life of the loan.
RELATED: Home loan refinancing levels ramping up: ABS
Interested in learning more about some of Athena’s home loan offers? Check out our quick snapshots for two of its most popular loan options below.
Celebrate Variable Home Loan (<60% LVR, Owner Occupier, Principal & Interest)
- 1.99% (1.99% comparison rate*) variable rate (<60% LVR)
- No upfront or ongoing fees
- Extra repayments and redraw facility available
Offering a super low variable rate of 1.99% (1.99% comparison rate*) for owner occupiers with an LVR below 60%, Athena’s Celebrate Variable Home Loan could be an appealing option for borrowers with either a sizable deposit or plenty of built up equity. The lack of upfront and ongoing fees will also help mortgage holders keep their costs down, plus there are handy features like the ability to make extra repayments and an online redraw facility for anyone that wants to dip into any additional repayments down the line
Liberate Variable Home Loan (70-80% LVR, Owner Occupier, Principal & Interest)
- 2.19% (2.08% comparison rate*) variable rate (70-80% LVR)
- Further rate discounts as loan is paid down
- Zero upfront or ongoing fees
Mortgage hunters with an LVR between 70-80% will struggle to find many lower variable rates than the 2.19% (2.08% comparison rate*) rate on offer to owner occupiers with Athena’s Liberate Home Loan. There are no upfront or ongoing fees to budget for and borrowers who want to pay off their loan faster will be able to do so by making (fee-free) extra repayments. Speaking of paying down the loan, Athena will automatically discount your rate further as you pay off more of your loan (and your LVR drops).
Want to see how Athena's new rates stack up against other offers on the market? Head on over to the Mozo home loan comparison page to compare even more options.
* 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 $150,000 over 25 years.
** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. 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.
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