Athena launches fixed rate home loans

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Low cost online mortgage lender Athena has rolled out fixed rate home loans to compliment its existing variable rate offers.

Launched this morning, the Fixed Rate Home Loan is available to both owner occupier and investor borrowers who are looking to lock in a rate for a term between 1-3 years. The lowest rates currently available at <80% loan-to-value ratio (LVR) are as follows:

  • 1-year: 2.19% p.a. (2.08% p.a. comparison rate*) for owner occupiers making principal and interest repayments
  • 2-year: 2.39% p.a. (2.11% p.a. comparison rate*) for owner occupiers making principal and interest repayments
  • 3-year: 2.59% p.a. (2.18% p.a. comparison rate*) for owner occupiers making principal and interest repayments

But like Athena’s 2021 Mozo Experts Choice Award winning variable ‘AcceleRATES’ loans, the rates on the Fixed Rate Home Loan are tiered depending on the loan-to-value ratio (LVR). That means that there are even lower fixed interest rates available for borrowers with LVRs below 70% and below 60%.

How does Athena’s Fixed Rate Home Loan compare?

So how does the new Fixed Rate Home Loan stack up against other fixed rate mortgages on the market? Unlike Athena’s variable rate loan which features some of the lowest rates in the Mozo database, the rates available with the Fixed Rate Loan aren’t quite as sharp.

While the 1-year fixed rate for owner-occupier borrowers with an 80% LVR is below our database average, the 2 and 3-year rates are both higher than average. And all three rates are well above the lowest comparable fixed rates currently being tracked in our database.

Athena Fixed RateLowest (Mozo database)^^Average (Mozo database)^^
1-year2.19% p.a. (2.08% p.a. comparison rate*)1.59% p.a. (2.15% p.a. comparison rate*)2.28%
2-year2.39% p.a. (2.11% p.a. comparison rate*)1.59% p.a. (2.10% p.a. comparison rate*)2.23%
3-year2.59% p.a. (2.18% p.a. comparison rate*)1.85% p.a. (2.13% p.a. comparison rate*)2.35%

Having said that, Athena’s Fixed Rate Home Loan does feature comparatively low revert rates - the rate a mortgage holder will receive once their fixed period finishes.

Revert rates are generally much higher than the fixed rates offered, meaning borrowers can end up paying much more than they were during the fixed period if they’re not quick to refinance to another loan or renegotiate their rate with their current lender.

However, Athena’s revert rates are actually lower than their fixed rates at present, which means (if the rates continue to maintain their competitiveness) borrowers will be rolled on to a low rate once their fixed period is over.

RELATED: Athena calls out the 'loyalty penalty rort' costing Australian borrowers billions

To learn more about Athena's newest loan, check our our mini review below, or for more information about the rates, fees and features involved, have a read through our more comprehensive Fixed Rate Home Loan review

Athena - Fixed Rate Home Loan
  • 1-year fixed rate of 2.09% p.a. (2.02% p.a. comparison rate*) <60% LVR
  • Low revert rates
  • No upfront, ongoing or discharge fees

Athena has made a name for itself in recent years by offering some of the most competitive variable rate home loans around, and now it’s launched its own Fixed Rate Home Loan for owner occupiers and property investors looking to lock in a rate for 1, 2 or 3 years. Fixed rates go as low as 2.09% p.a. (2.02% p.a. comparison rate*) on a 1-year term for owner occupiers (<60% LVR), but there are also a number of other rates for borrowers with LVRs under 80%. Speaking of rates, one of the highlights of the loan is the relatively low revert rates on offer, which may be appreciated by borrowers once the fixed rate period ends. In terms of features, Athena allows customers to make extra repayments up to 5% of the outstanding loan balance each year during the fixed period, although redraw is unavailable until the fixed period ends. Finally, it’s worth talking about fees - well, the lack of fees. Athena doesn’t charge any upfront, ongoing or discharge fees on its loan, although like most fixed loans, a break cost may be charged to borrowers who want to exit their fixed period early.

Interested to see how the Fixed Rate Home Loan compares to other fixed offers? Then head on over to the dedicated Mozo fixed rate comparison hub where you'll be able to compare loans from a range of different lenders.

^^Interest rates are based on an owner occupier making principal and interest repayments on a $400,000 loan with an 80% LVR. For more information on average mortgage rates, check out our dedicated Australian home loan statistics page.

* 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, loan amount and term entered. 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.

^See information about the Mozo Experts Choice Home Loan Awards

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