Image source: Athena
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 | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Extra Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.94% p.a. | 5.98% p.a. | $2,978 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | ||||||||||
5.89% p.a. | 5.80% p.a. | $2,962 | Principal & Interest | Variable | $0 | $0 | 80% |
| Promoted | Disclosure | ||||||||||
5.99% p.a. | 6.02% p.a. | $2,995 | Principal & Interest | Fixed | $0 | $0 | 60% |
| Promoted | Disclosure | ||||||||||
5.93% p.a. | 5.93% p.a. | $2,975 | Principal & Interest | Variable | $0 | $395 | 70% | Disclosure |
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.