Quick off the blocks: Athena and Homestar make 0.15% cuts following RBA decision
Athena and Homestar have passed on a 15 basis point interest rate cut to home loan customers, becoming some of the first mortgage lenders to do so following this afternoon’s November Reserve Bank Board meeting.
While it’s not uncommon for lenders to delay passing on cuts for days or even weeks, Athena and Homestar have typically been two of the fastest to pass on RBA cuts in recent years.
According to our latest figures, both Athena and Homestar are now offering variable rates for owner occupiers (80% LVR) over 100 basis points lower than the average variable rate in the Mozo database.
Athena rate changes
Athena’s changes, which come into effect immediately, apply to both new and existing owner occupier and investor customers across Athena’s suite of variable mortgage offers. Here are the updated rates for owner occupiers:
|2.19% (2.19% comparison rate*)||<60%||Celebrate Home Loan|
|2.24% (2.21% comparison rate*)||60-70%||Evaporate Home Loan|
|2.29% (2.23% comparison rate*)||70-80%||Liberate Home Loan|
Athena chief executive officer, Nathan Walsh says that since the start of the pandemic the company has heard many customers say they are frustrated by having to ask their lender to give them a better rate.
“But we are proud to say that our customers never have to ask,” said Walsh. “With refinancing at the top of Aussie homeowners’ agenda, Athena is encouraging Aussies to not be complacent with their rate and actively look for a better deal.”
Homestar rate changes
Homestar’s 15 basis point cut comes into effect immediately for new customers, meaning the following variable rate offers for owner occupiers now sit at:
|2.14% (2.17% comparison rate*)||80%||Star Essentials|
|2.24% (2.27% comparison rate*)||80%||Star Classic|
“2020 has been a tough year and Homestar is focused on supporting Australian families,” said Homestar’s Executive of Retail Distribution, Mandy Sly.
“We trust that the reduction in our home loan interest rates will contribute to easing the financial burden and enabling more Australians to afford their dream home.”
Athena Liberate Variable Home Loan
- Low 2.29% (2.23% comparison rate*) variable rate
- Zero upfront or ongoing fees
- Further rate discounts as loan is paid off
Offering a seriously low variable rate of just 2.29% (2.23% comparison rate*) for owner occupiers with an LVR between 70% - 80%, plus no upfront or ongoing fees, Athena’s Liberate Variable Home Loan could be an appealing option for borrowers wanting to keep costs to a minimum. Borrowers will also have access to handy features like extra repayments and an online redraw facility, and they’ll automatically receive interest rate reductions as they pay off more of their loans.
Homestar Star Essentials Home Loan
- 2.14% variable rate (2.17% comparison rate*)
- Free extra repayments and redraw facility
- Limited time $1,500 cashback offer
Looking for a loan between $150k and $850k? Borrowers will struggle to find many variable rates lower than the 2.14% rate (2.17% comparison rate*) that comes with Homestar’s Star Essentials Home Loan for owner occupiers with a maximum LVR of 80%. While there are a number of upfront fees to consider, Homestar is currently offering borrowers the option of an upfront fee waiver or $1,500 cashback when they apply before 30 November and settle the loan by 31 January, 2021.
* 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.
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