Homestar takes lead on 2-year fixed home loan rates
Online lender Homestar has taken the lead on fixed rate home loans after bringing down its two-year offers for owner occupiers and investors to the lowest in the Mozo database.
Homestar’s 14 basis point cut this week means its Star Classic Fixed Home Loan has dropped to just 1.74% p.a. (2.23% p.a. comparison rate*) for two-year terms. This rate is available to owner occupiers making principal and interest repayments, and is 15bp better than the second best two-year fixed rate in our database.
As for investors making principal and interest repayments, they weren’t left out of the mix either. This week Homestar slashed 19 basis points off its two-year fixed rate available with its Star Classic Investment Fixed Rate Home Loan.
The new rate now sits at 1.99% p.a. (2.44% p.a. comparison rate*) - the best in our database for two-year fixed rate investment loans, and the only one in its category to have dipped below 2%.
The only catch is these are limited time offers. So to snag either rate, your application must be received by 30 May 2021 and settled by 31 August 2021. There is also an additional condition that the property you’re financing with Homestar must be located in a metro area.
Have Homestars top-notch rates piqued your interest? Read more about its fees and features in the snapshots below.
Homestar’s special 2-year fixed rates
Star Classic Fixed Special Home Loan
- 2-year fixed rates from 1.74% p.a. (2.23% p.a comparison rate*) (limited time only)
- Free extra repayments (up to $20k p.a.) and redraw facility
- Option to split your loan into fixed and variable
If you’re looking to lock in an impressive rate, then you’ll want to turn your attention to the Homestar Star Classic Fixed Home Loan. Not only does it currently have the best two-year fixed rate for owner occupiers in the Mozo database, but borrowers can also access a whole range of flexible features. These include the ability to match your repayments to your pay cycle (weekly, fortnightly or monthly), make free extra repayments up to $20,000 per year, as well as redraw those additional funds for free should you need them down the track. But you will have to pay a discharge fee if you pay off your loan early. Also bear in mind that there are a couple upfront fees and an annual service fee to budget for.
Star Classic Investment Fixed Special 2 Year Rate Home Loan
- 2-year fixed rates from 1.99% p.a. (2.84% p.a. comparison rate*) (limited time only)
- Borrow up to $1 million
- Free extra repayments (up to $20k p.a.)
Looking to purchase an investment property? Then say hello to ultra competitive two-year fixed rates from Homestar, which start at just 1.99% p.a. (2.84% p.a. comparison rate*) for investors - the lowest in the Mozo database at the time of writing. Investors can borrow from $150,000 up to $1 million depending on their needs, and they’ll also be able to make extra repayments up to $20,000 per year (although no redraws are available). Just beware that once again, you’ll need to consider two upfront fees as well as an annual service fee, although the discharge fee will be waived if you let the loan go to its full term.
If you’re interested in weighing up Homestar’s offers against other providers in the market, then be sure to visit our fixed rate home loans comparison hub.
* 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
Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.
While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.