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.

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 2019. They are (in descending order): Credit Union Australia, 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.

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.

*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.

Latest Articles

author-avatar
Alex joined Savings.com.au in 2019. He is passionate about providing Australians with the information and tools needed to make them financially stable for their futures.

Get free insights & tips monthly

By subscribing you agree to the Savings Privacy Policy

Loading data please wait...

{{returnData.productName}}

Overview

Current Rate

{{returnData.currentRate | percentage:2}}

Comparison Rate*

{{returnData.comparisonRate | percentage:2}}

Rate Type

{{returnData.rateType}}

Advertised Rate

{{returnData.advertisedInterestRate}}

Comparison Rate*

{{returnData.comparisonRate}}

Monthly Repayment

{{returnData.monthlyRepayment}}

Interest Type

{{returnData.interestType}}

Total Interest Rate

{{returnData.totalInterestRate | percentage:2}}

Base Interest Rate

{{returnData.baseInterestRate | percentage:2}}

Bonus Interest Rate

{{returnData.bonusInterestRate | percentage:2}}

Total Interest Rate

{{returnData.totalInterestRate | percentage:2}}

Introductory Rate

{{returnData.introductoryRate | percentage:2}}

Introductory Term

{{returnData.introductoryTerm}}

Base Interest Rate

{{returnData.baseInterestRate | percentage:2}}

Term

{{returnData.term}}

Advertised Interest Rate

{{returnData.advertisedInterestRate | percentage:2}}

Interest Frequency

{{returnData.interestFrequency}}


Fees and Features

Ongoing Annualised Fee

{{returnData.annualFee}}

Upfront Fee

{{returnData.upfrontFee}}

Offset Account

Redraw

Principal & Interest

Interest Only

N/A{{returnData.interestOnly}}

Max loan to value ratio (LVR)

{{returnData.maxLVR | percentage:0}}

Lump sum repayments

N/A

Additional repayments

Maximum Loan Term

{{returnData.maximumLoanTerm}}

Upfront Fee

${{returnData.upfrontFee}}

Ongoing Monthly Fee

{{returnData.ongoingFees}}

Early Repayment Fee Applies

N/A

Vehicle Types

{{returnData.vehicleType}}

Maximum Vehicle Age

{{returnData.maximumVehicleAge}}

Pre Approval Available

N/A

Online Application

N/A

Account Keeping Fee

{{returnData.accountKeepingFee}}

Minimum Monthly Deposit

{{returnData.minMonthlyDeposit}}

Linked Account Required

N/A

Interest Calculated

{{returnData.interestCalculated}}

Interest Paid

{{returnData.interestPaid}}

Online Application

N/A

ATM

N/A

EFTPOS

N/A

Account Keeping Fee

{{returnData.accountKeepingFee}}

Minimum Monthly Deposit

{{returnData.minMonthlyDeposit}}

Linked Account Required

N/A

Interest Calculated

{{returnData.interestCalculated}}

Interest Paid

{{returnData.interestPaid}}

Online Application

N/A

ATM

N/A

EFTPOS

N/A

Minimum Deposit

{{returnData.minDeposit | currency : '$' : 0}}

Upfront Fees

{{returnData.upfrontFee | currency : '$' : 0}}

Annual Fees

{{returnData.annualFee | currency : '$' : 0}}

Notice Period to Withdraw

{{returnData.noticePeriodToWithdraw}}

Online Application

N/A

Automatic Rollover

N/A

Maturity Alert

N/A