Athena cuts home loan rates as you pay down your loan

author-avatar By
on August 12, 2020
Athena cuts home loan rates as you pay down your loan

Image source: Athena 

Non-bank lender Athena has launched a bold new strategy to help customers pay off their mortgage faster.

The offering labelled 'Athena Accelerates' lowers a customer's rate the more they pay down the loan and is available for new and existing customers from 30 September 2020, while customers who apply for a loan from today will also receive the new rates. 

Owner-occupier (OO) borrowers with a Loan to Value Ratio (LVR) of:

  • 70-80% will receive a variable Principal and Interest (P&I) rate of 2.54% p.a. (comparison rate 2.46% p.a.)
  • 60-70% will receive a variable P&I rate of 2.49% p.a. (comparison rate 2.43% p.a.)
  • Less than 60% will receive a variable P&I rate of 2.39% p.a. (comparison rate 2.39% p.a.)

Borrowers' rates will be automatically dropped as they fall into a new LVR tier, with Athena boasting that the offer is an Australian first. 

Buying a home or looking to refinance? The table below features home loans with some of the lowest variable interest rates on the market for owner-occupiers.

Lender

Variable
More details
UNLIMITED REDRAWSSPECIAL OFFER
  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
UNLIMITED REDRAWSSPECIAL OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
Variable
More details
AN EASY DIGITAL APPLICATION
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
AN EASY DIGITAL APPLICATION

Neat Variable Home Loan (Principal and Interest) (LVR < 60%)

  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
Variable
More details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES
  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
Variable
More details
NSW/VIC/SA METRO & INNER REGIONAL AREAS$5000 CASHBACK. T&Cs APPLY.
  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
NSW/VIC/SA METRO & INNER REGIONAL AREAS$5000 CASHBACK. T&Cs APPLY.

Variable Home Loan (Principal and Interest)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of May 18, 2022. View disclaimer.

Athena Accelerates is also available to investors. Investors with an LVR of:

  • 70-80% will receive a variable P&I rate of 2.94% p.a. (comparison rate 2.87% p.a.)
  • 60-70% will receive a variable P&I rate of 2.89% p.a. (comparison rate 2.83% p.a.)
  • Less than 60% will receive a variable P&I rate of 2.79% p.a. (comparison rate 2.79% p.a.)

Athena chief executive and co-founder Nathan Walsh said the lender wanted to offer a more rewarding home loan experience. 

“Aussie borrowers are so frustrated by the painful negotiations with their current lender in order to get a fair rate," Mr Walsh said.

"That’s why Athena wants to motivate, encourage and reward customers for paying off their home loan and also have peace of mind knowing that once they hit the lower tier, we will drop their rates for them automatically.”

Mr Walsh said customers who switch to Athena saved $60,000 on average over the life of the loan, with the new offer only increasing the savings.

"With our new AcceleRates pricing model many of these customers will now save $70,000," he said.

Athena chief operating officer and co-founder Michael Starkey meanwhile said borrowers would spend the majority of the life of their loan at the lowest rate.

"If they start out at the 80% LVR tier and pay the minimum on a Principle and Interest loan, they would hit the 70% LVR tier in only 4 years and 2 months," Mr Starkey said.

"From there they would hit our lowest rate in just 3 years and 9 months where they would stay for the rest of the loan.

"Of course customers can choose to make additional repayments and get there even faster.”

Athena Accelerates replaces the lender's previous Loyalty Bonus offer, which saw existing borrowers' rates go down by 0.01% in each of the first five years. 

Launched in early 2019, Athena made a name for itself by being the first lender to pass on each Reserve Bank cash rate cut in full immediately, earning itself a name drop from Treasurer Josh Frydenberg


Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.

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Alex joined Savings.com.au as a finance journalist in 2019. He enjoys covering in-depth economical releases and breaking down how they might affect the everyday punter. He is passionate about providing Australians with the information and tools needed to make them financially stable for their futures.

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