Homestar Finance offering one of Australia's lowest ever fixed-rate home loans

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on March 17, 2021
Homestar Finance offering one of Australia's lowest ever fixed-rate home loans

The home loan rate war has continued to intensify as prices skyrocket across the country and buyers rush to purchase their dream home.

Homestar Finance has slashed the rate on its two-year owner-occupier fixed rate by 14 basis points to a market leading rate of 1.74% p.a. (2.23% p.a. comparison rate*). 

The offer is available from today, although with a Loan-to-Value Ratio (LVR) of 80%, borrowers will need a minimum 20% deposit to apply. 

The loan has extra repayments of up to $20,000 available each year, free online redraws, multiple loan splits, and the option to make repayments weekly, fortnightly, or monthly.


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 29, 2022. View disclaimer.

According to Savings.com.au research, Homestar has knocked big four lender Westpac, who previously held the lowest two-year fixed rate, off its perch. 

Greater Bank has the lowest fixed-rate on the market overall with a one year fixed-rate of 1.69% p.a (3.49% p.a. comparison rate), while UBank has the lowest three-year fixed rate at 1.75% (2.22% p.a.). 

Homestar also boasts one of the lowest variable rates on the market at 1.79% p.a (1.84% p.a comparison rate). 

While advertised rates can be attractive, the comparison rate and revert rate are often equally important when it comes to fixed-rate mortgages. 

Greater Bank's comparison rate on its one-year fixed-rate may be considered quite high in today's market, while Homestar's comparison rate is still fairly competitive.

In the wake of the most recent Reserve Bank (RBA) cash rate cut in November, the majority of lenders have left variable rates untouched and instead made sweeping cuts to fixed rates. 

With the RBA stating the cash rate is unlikely to be raised before the end of 2024, many borrowers could be considering whether now is a good time to fix.

Resimac slashes rates for self-employed borrowers 

Fellow non-bank lender Resimac has cut interest rates and waived some fees on a range of its low-doc home loans in a bid to support self-employed Aussies to buy property or refinance. 

Low-doc home loans are typically for the self-employed, and usually don't have the same required documentation needed for a home loan like recent payslips and pay summaries. 

Lender

Fixed
More details

Reward Me Home Loan Fixed 2 Years ($300k+) (Principal & Interest) (New Customer)

    Variable
    More details

    Reward Me Home Loan (Principal and Interest) ($75k-$500k, LVR < 80%)

      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 29, 2022. View disclaimer.

      Resimac has dropped rates on its Prime Alt Doc owner-occupier making Principal and Interest repayments by 88 basis points to 2.99% p.a. (3.03% p.a). 

      Resimac loans are only available through a broker, and borrowers will need an 80% LVR.

      The risk fee on the loan has also been waived. 

      Resimac General Manager Distribution Daniel Carde said the move was designed to provide self-employed borrowers with access to credit at a time it could make a material difference.

      “There are many self-employed Australians who will need more support this year as they get back on their feet and transition back to normality after almost 12 months of disruption,” Mr Carde said.

      “Refinance activity was particularly strong in 2020, however many self-employed borrowers were effectively shut out of the market due to the economic uncertainty caused by the pandemic.

      "We’re looking to change that in 2021 by reducing our interest rates and removing almost all the entry costs on our range of Prime Alt Doc loans."


      Photo by Jaye Haych on Unsplash

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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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