The RBA reduced official interest rates by 0.25% only a few short minutes ago, but some providers have already sprung into action. Just now, Athena Home Loans announced it will be passing on the full cut to its home loan customers, effective immediately.
The changes will apply to both new and existing customers, and will see rates for the Athena Variable Rate Home Loan (owner occupier, P&I) drop as low as 2.84% p.a. (2.80% p.a. comparison rate*).
That means existing customers will see some serious reductions in their monthly repayments. For those paying off a $400,000 loan over 30 years (P&I, LVR <80%), a decrease of 0.25% could result in savings of $53 a month, or $636 over a year.
Investor rates have also been sharpened quite a bit. Currently, investors looking to pay principal and interest on a loan will be looking at variable rates as low as 3.24% p.a. (3.20% p.a. comparison rate*).
“Saving customers money is at the core of Athena’s mission. By passing on all three of the RBA rate cuts immediately, we have been able to save our customers over $23 million over the life of their loans,” said Athena Co-founder and CEO, Nathan Walsh.
Athena Home Loans October 1 rate changes
Since launching in February, Athena has won over homebuyers with some very simple but attractive messaging: we’ll give you a great home loan, then help you get rid of it.
And after passing on the full rate cut three times this year it’s certainly holding up its end of the bargain. At the time of writing, only one other provider has done the same.
“We have had an overwhelming customer response to the last two cuts with over $2 billion in application volume since the June rate cut. Customers are realising they don’t need to put up with a home loan provider that doesn’t pass on the savings when they can,” said Walsh.
We’ve included a summary of Athena’s Variable Rate Home Loan below, but if you’re wondering how it stacks up against other offerings on the market, make our variable rate home loan comparison page your next stop.
The Athena Variable Home Loan is a simple home loan designed to make the road to property ownership as smooth as possible, and after today’s rate cut, it’s looking much more appealing. Owner occupiers will be able to enjoy rates as low as 2.84% p.a. (2.80% p.a. comparison rate*), along with a number of handy features to help save on interest. And to top it off, if you make all your repayments on time in a year, you’ll receive a bonus 0.01% discount each of those years for the first five years.
*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.