Homestar keeps the streak going, cuts home loan rates by 0.25%

If we had to pick a home loan provider MVP, Homestar would be a pretty strong contender. Not too long after the RBA cut official interest rates by 0.25%, the online lender announced it would be cutting home loan rates in kind — the third time this year it’s passed on the full cut.

The changes will come into effect October 28 for existing customers, and will be effective immediately for new customers.

The decision sees rates for the Star Essentials Home Loan - which was one of the first home loans to cross below the 3.00% mark back in July - drop to a staggeringly low 2.74% p.a. (2.77% p.a. comparison rate*).

That gives owner occupiers plenty of reason to celebrate. Existing customers paying principal and interest on a $400,000 loan over 30 years (LVR 80%) will be looking at savings in the range of $54 a month, or $648 over a year.

“Passing on all three rate cuts in full, shortly after each RBA announcement is only one way we continue to demonstrate our commitment to our customers,” said Mandy Sly, GM of Homestar Finance.

“While borrowers have seen lenders talking about a “3” in front of their rate, we have been providing customers with a rate starting with “2” since the July RBA rate cut.”

Homestar October 1 rate changes

Smaller lenders outpacing their larger counterparts has been a running theme these past three rate cuts. Like Homestar, Athena Home Loans wasted no time in passing on the full cut to its home loan customers. Many larger lenders, meanwhile, have yet to make a move.

Read on for an overview of the Homestar Star Essentials Home Loan, or visit our variable rate home loan comparison page for a look at even more fantastic offers.

^See information about the Mozo Experts Choice Home Loan Awards

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