Only a few short minutes after the RBA announced it will be reducing official interest rates by 0.25%, online lenders Homestar and Athena Home Loans have jumped on the opportunity to pass on the full cut to their customers.
The changes see rates for Athena’s Variable Rate Home Loan drop down to 3.09% p.a. (3.05% comparison rate*) for owner occupiers and 3.49% p.a. (3.45% p.a. comparison rate*) for investors.
“The big banks delayed passing on the June RBA rate cut by as much as 21 days, costing Aussie borrowers over $100 million. Lenders who failed to pass on the full savings cost customers a further $280 million. Australians are sick of these games,” said Athena CEO and co-founder, Nathan Walsh.
“In contrast, Athena is committed to helping all customers pay off their home loan faster. We moved quickly to pass on the benefits to all our customers - passing on the full rate cut savings to all customers in minutes not weeks.”
Rate reductions are effective immediately, and will apply to both new and existing customers thanks to Athena’s Automatic Rate Match feature.
Homestar crosses threshold with 2.99% rate
Meanwhile, Homestar will be cutting rates for all its products by 0.25%. Most notably, its Star Essentials Home Loan has crossed over into the two per cent range. Effective immediately, owner occupiers will be able to enjoy rates as low as 2.99% p.a. (2.99% p.a. comparison rate*).
That means existing customers paying principal and interest will see some serious savings. On a $400,000 loan over 30 years (LVR <80%) at 2.99% p.a. (2.99% p.a. comparison rate*), existing customers will be able to save $55 a month, or $19,574 over the life of the loan.
“Being the oldest online lender in Australia, Homestar Finance is committed to offering one of the lowest home loan rates in the market,” said CEO Andrew Chepul.
“Our aim is to help Australians achieve the dream of owning their home sooner. We are demonstrating this by consistently passing on the full RBA rate reductions, where possible, to both new and existing customers.”
Following last month’s RBA cut, smaller lenders emerged as the ones to watch, and it looks like we’ll see something similar this time round. For a look at how Athena and Homestar stack up against other home loans in terms of rates and features, be sure to check out our variable rate home loan comparison page.