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.
Homestar Star Essentials Home Loan
Super low 2.74% p.a. variable rate (2.77% p.a. comparison rate*)
If the Homestar Star Essentials home loan wasn’t on your radar already, it should be now. Homebuyers and refinancers will be able to take advantage of a stellar 2.74% p.a. variable rate (2.77% p.a. comparison rate*), along with plenty more handy features. Fees are kept to a minimum, you’ll be able to make free extra repayments, and there’s a redraw facility available in case you ever need those funds back.
*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.
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