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
Advertised rate Comparison rate Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval

VariableMore details
LIMITED TIME 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%
LIMITED TIME 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%
VariableMore details
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
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
VariableMore details
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • Refinance only. Fast online application
  • No Nano fees. Free 100% offset sub account
  • Mobile app, Visa debit card & instant payments
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • Refinance only. Fast online application
  • No Nano fees. Free 100% offset sub account
  • Mobile app, Visa debit card & instant payments
VariableMore details
YOU COULD WIN $100k TO PAY DOWN YOUR LOAN*

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • For a chance to win $100K towards your home loan, apply with Athena before Oct 31 & be approved by Dec 15
  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
YOU COULD WIN $100k TO PAY DOWN YOUR LOAN*

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • For a chance to win $100K towards your home loan, apply with Athena before Oct 31 & be approved by Dec 15
  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
VariableMore details
AN EASY ONLINE APPLICATION

Yard Home Loan (Principal and Interest) (Special) (LVR < 70%)

  • Unlimited additional repayments
  • Unlimited free redraws
  • Optional 100% offset can be added for $120 p.a.^
AN EASY ONLINE APPLICATION

Yard Home Loan (Principal and Interest) (Special) (LVR < 70%)

  • Unlimited additional repayments
  • Unlimited free redraws
  • Optional 100% offset can be added for $120 p.a.^

Rates correct as of October 27, 2021. 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 which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:

  • The big four banks are: ANZ, CBA, NAB and Westpac
  • The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2020. They are (in descending order): Great Southern Bank, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
  • The larger non-bank lenders are those who (in 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.
  • If you click on a product link and you are referred to a Product or Service Provider’s web page, it is highly likely that a commercial relationship exists between that Product or Service Provider and Savings.com.au

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.

In the interests of full disclosure, Savings.com.au, Performance Drive and Loans.com.au are part of the Firstmac Group. To read about how Savings.com.au manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.

*Comparison rate is based on a loan of $150,000 over a term of 25 years. Please note the comparison rate only applies to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as redraw fees and costs savings, such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

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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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