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Pros and cons

  • Like-for-like loans
  • No application fees, ongoing fees or exit fees
  • Competitive rates
  • Not available to all self-employed borrowers
  • Not available for selected properties e.g. apartments built during 2013 or later

Owner occupied Athena home loan rates

TMD

Loan typePrincipal & Interest rateInterest Only
1 Year Owner Occupier Fixed (Min Deposit 40%)
5.09% p.a.
2.86% p.a. Comparison rate
5.59% p.a.
2.9% p.a. Comparison rate
1 Year Owner Occupier Fixed (Min Deposit 30%)
5.14% p.a.
2.88% p.a. Comparison rate
5.59% p.a.
2.92% p.a. Comparison rate
1 Year Owner Occupier Fixed (Min Deposit 20%)
5.19% p.a.
2.9% p.a. Comparison rate
5.59% p.a.
2.94% p.a. Comparison rate
2 Year Owner Occupier Fixed (Min Deposit 40%)
5.64% p.a.
3.16% p.a. Comparison rate
6.24% p.a.
3.26% p.a. Comparison rate
2 Year Owner Occupier Fixed (Min Deposit 30%)
5.69% p.a.
3.18% p.a. Comparison rate
6.24% p.a.
3.28% p.a. Comparison rate
2 Year Owner Occupier Fixed (Min Deposit 20%)
5.74% p.a.
3.21% p.a. Comparison rate
6.24% p.a.
3.3% p.a. Comparison rate
Owner Occupier Loan (Min Deposit 30%)
n/a
3.59% p.a.
3.59% p.a. Comparison rate
Owner Occupier Loan (Min Deposit 20%)
n/a
3.59% p.a.
3.59% p.a. Comparison rate
Owner Occupier Loan (Min Deposit 40%)
n/a
3.59% p.a.
3.59% p.a. Comparison rate
3 Year Owner Occupier Fixed (Min Deposit 40%)
5.89% p.a.
3.48% p.a. Comparison rate
6.49% p.a.
3.62% p.a. Comparison rate
3 Year Owner Occupier Fixed (Min Deposit 30%)
5.94% p.a.
3.5% p.a. Comparison rate
6.49% p.a.
3.63% p.a. Comparison rate
3 Year Owner Occupier Fixed (Min Deposit 20%)
5.99% p.a.
3.53% p.a. Comparison rate
6.49% p.a.
3.65% p.a. Comparison rate
Owner Occupier Accelerates - Celebrate (Min Deposit 40%)
2.64% p.a.
2.66% p.a. Comparison rate
n/a
Owner Occupier Accelerates - Evaporate (Min Deposit 30%)
2.69% p.a.
2.66% p.a. Comparison rate
n/a
Owner Occupier Accelerates - Liberate (Min Deposit 20%)
2.74% p.a.
2.69% p.a. Comparison rate
n/a

Investment purpose Athena home loan rates

TMD

Loan typePrincipal & Interest rateInterest Only
1 Year Investor Fixed (Min Deposit 40%)
5.29% p.a.
3.15% p.a. Comparison rate
5.49% p.a.
3.17% p.a. Comparison rate
1 Year Investor Fixed (Min Deposit 30%)
5.34% p.a.
3.17% p.a. Comparison rate
5.49% p.a.
3.18% p.a. Comparison rate
1 Year Investor Fixed (Min Deposit 20%)
5.39% p.a.
3.2% p.a. Comparison rate
5.49% p.a.
3.21% p.a. Comparison rate
Investor Loan (Min Deposit 40%)
n/a
3.24% p.a.
3.24% p.a. Comparison rate
Investor Loan (Min Deposit 30%)
n/a
3.24% p.a.
3.24% p.a. Comparison rate
Investor Loan (Min Deposit 20%)
n/a
3.24% p.a.
3.24% p.a. Comparison rate
2 Year Investor Fixed (Min Deposit 40%)
5.84% p.a.
3.45% p.a. Comparison rate
6.04% p.a.
3.48% p.a. Comparison rate
2 Year Investor Fixed (Min Deposit 30%)
5.89% p.a.
3.47% p.a. Comparison rate
6.04% p.a.
3.49% p.a. Comparison rate
2 Year Investor Fixed (Min Deposit 20%)
5.94% p.a.
3.5% p.a. Comparison rate
6.04% p.a.
3.52% p.a. Comparison rate
3 Year Investor Fixed (Min Deposit 40%)
6.09% p.a.
3.76% p.a. Comparison rate
6.29% p.a.
3.79% p.a. Comparison rate
3 Year Investor Fixed (Min Deposit 30%)
6.14% p.a.
3.78% p.a. Comparison rate
6.29% p.a.
3.81% p.a. Comparison rate
3 Year Investor Fixed (Min Deposit 20%)
n/a
6.29% p.a.
3.83% p.a. Comparison rate
Investor Accelerates - Celebrate (Min Deposit 40%)
2.94% p.a.
2.94% p.a. Comparison rate
n/a
Investor Accelerates - Evaporate (Min Deposit 30%)
2.99% p.a.
2.96% p.a. Comparison rate
n/a
Investor Accelerates - Liberate (Min Deposit 20%)
3.04% p.a.
2.99% p.a. Comparison rate
n/a
3 Year Owner Occupier Fixed (Min Deposit 20%)
6.19% p.a.
3.81% p.a. Comparison rate
n/a

Athena home loan calculator

Thinking about taking out a home loan with Athena ? Use our home loan calculator to see how much you’d have to repay under different borrowing scenarios. You can also see how Athena home loans compare with other options.

I am an

With a repayment type

Borrow amount

$

Deposit amount %

Loan term

Your estimated mortgage repayments

at interest rate 2.64%

Total interest payable

$0

Total loan repayments

$0

How to apply for an Athena home loan

You can apply for an Athena home loan online via the Athena website. You can also contact Athena by phone for more information.

To apply for an Athena home loan, you’ll need to fulfil the following criteria:

  • Up to 2 applicants in total, over the age of 18
  • Borrow 80% or less of the value of your property. In certain cases you might only be able to borrow up to 70%.
  • At least one applicant is employed, including full-time, part-time & casual PAYG employment
  • Your property is in a capital city or major population centre
  • Australian/NZ citizens (living in Australia) or permanent residents
  • You have good credit history

About Athena home loans

Athena offers a relatively small selection of home loan options compared to some other mortgage lenders. There are principal and interest and interest-only home loan options for owner occupiers and investors available, with no application fees, ongoing fees or annual fees. These loans can also offer access to fee-free extra repayments and redraws. Athena has plans in place to release additional loan options in the future, to suit a greater variety of households and budgets.

Once you’ve successfully applied for an Athena home loan, you’ll be able to access your account by logging in online at the Athena website. You can also access additional information and resources, including home loan calculators to help you estimate your potential savings if you were to refinance and switch to an Athena home loan.

Athena home loan rates

As an online-only lender, Athena is able to offer relatively competitive interest rates on its home loans compared to some larger banks. Some of Athena’s lowest rates are available to owner-occupiers paying principal and interest, with P&I investors paying slightly higher rates. Owner-occupiers and investors who choose to pay interest only for up to five years will pay higher interest rates.

Athena offers like-for-like home loans, to help keep Athena customers from missing out on savings. If Athena offers a lower home loan interest rate to new customers, existing Athena customers with the same type of mortgage will receive an automatic rate match.   

Athena home loans review

Owner-occupiers and investors can get principal and interest or interest-only home loans from Athena, provided they have a loan to value ratio (LVR) of 80% or less, a good credit history, a property in a capital city or regional centre, and aren’t self-employed. Athena may not be able to offer mortgages on selected property types, such as apartments in buildings over 7 storeys that were built in 2013 or later. 

Athena’s interest rates are competitive in the Australian market. Plus, like-for-like loans means existing Athena customers should enjoy the same interest savings as new customers in the future.

Athena doesn’t charge fees for its home loans, so customers may only need to pay third party costs on their home loan. Unlimited extra repayments are available, plus fee-free redraws for when you want your extra savings back in your pocket.

Learn more about home loans

What are the different types of home loan interest rates?

A home loan interest rate is used to calculate how much you’ll pay the lender, usually annually, above the amount you borrow. It’s what the lenders charge you for them lending you money and will impact the total amount you’ll pay over the life of your home loan. 

Having understood what are home loan rates in general, here are the two types you usually have with a home loan:

Fixed rates

These interest rates remain constant for a specific period and are a good option if you’re a first-time buyer or if you’re looking for a fixed monthly repayment. One possible downside of a fixed rate is that it may be higher than a variable rate. Also, you don’t benefit from any lowering of interest rates in the market. On the flip side, if rates go up, your rate won’t change, possibly saving you money.

Variable rates

With variable interest rates, the lender can change them at any time. This change can be based on economic conditions or other reasons. Changes in interest rates could be beneficial if your monthly repayment decreases but can be a problem if it increases. Variable interest rates offer several other benefits often not available with fixed rate home loans like redraw and offset facilities and free extra repayments. 

How do you compare home loans?

To compare home loans, you can assess the components of the loan against your own financial situation and other mortgages in the market.

Look at the interest rate, rate type (fixed or variable), loan fees, features, loan term, repayment frequency and more to find a home loan that fits with your budget and property goals.

Then, use comparison tools like comparison tables, calculators, or RateCity's Real Time RatingsTM to create a short list of home loan options, and decide which home loan best suits your needs.

What is a home loan?

A home loan is a finance product that allows a home buyer to borrow a large sum of money from a lender for the purchase of a residential property. The home is then put up as "security" or "collateral" on the loan, giving the lender the right to repossess the property in the case that the borrower fails to repay their loan.

Once you take out a home loan, you'll need to repay the amount borrowed, plus interest, in regular instalments over a predetermined period of time.

The interest you're charged on each mortgage repayment is based on your remaining loan amount, also known as your loan principal. The rate at which interest is charged on your home loan principal is expressed as a percentage.

Different home loan products charge different interest rates and fees, and offer a range of different features to suit a variety of buyers’ needs.

Why does Westpac charge an early termination fee for home loans?

The Westpac home loan early termination fee or break cost is applicable if you have a fixed rate home loan and repay part of or the whole outstanding amount before the fixed period ends. If you’re switching between products before the fixed period ends, you’ll pay a switching break cost and an administrative fee. 

The Westpac home loan early termination fee may not apply if you repay an amount below the prepayment threshold. The prepayment threshold is the amount Westpac allows you to repay during the fixed period outside your regular repayments.

Westpac charges this fee because when you take out a home loan, the bank borrows the funds with wholesale rates available to banks and lenders. Westpac will then work out your interest rate based on you making regular repayments for a fixed period. If you repay before this period ends, the lender may incur a loss if there is any change in the wholesale rate of interest.

When does Commonwealth Bank charge an early exit fee?

When you take out a fixed interest home loan with the Commonwealth Bank, you’re able to lock the interest for a particular period. If the rates change during this period, your repayments remain unchanged. If you break the loan during the fixed interest period, you’ll have to pay the Commonwealth Bank home loan early exit fee and an administrative fee.

The Early Repayment Adjustment (ERA) and Administrative fees are applicable in the following instances:

  • If you switch your loan from fixed interest to variable rate
  • When you apply for a top-up home loan
  • If you repay over and above the annual threshold limit, which is $10,000 per year during the fixed interest period
  • When you prepay the entire outstanding loan balance before the end of the fixed interest duration.

The fee calculation depends on the interest rates, the amount you’ve repaid and the loan size. You can contact the lender to understand more about what you may have to pay. 

Cash or mortgage – which is more suitable to buy an investment property?

Deciding whether to buy an investment property with cash or a mortgage is a matter or personal choice and will often depend on your financial situation. Using cash may seem logical if you have the money in reserve and it can allow you to later use the equity in your home. However, there may be other factors to think about, such as whether there are other debts to pay down and whether it will tie up all of your spare cash. Again, it’s a personal choice and may be worth seeking personal advice.

A mortgage is a popular option for people who don’t have enough cash in the bank to pay for an investment property. Sometimes when you take out a mortgage you can offset your loan interest against the rental income you may earn. The rental income can also help to pay down the loan.

How do you find cheap home loans?

With so many interest rate options and repayment types available, finding the cheapest home loan may depend on the type of loan you choose.

Whether you’re looking for an owner-occupier or investor loan, with interest-only or principal and interest repayments, on a fixed or variable interest rate, the cheapest home loan rate available may vary greatly.

One way to find the cheapest option for you is to narrow down your search and compare the options that best suit your individual requirements. RateCity’s home loan comparison tables can help you get started on your search and take the hassle out of shopping around.

Do you compare mortgages using the comparison or advertised rate?

A lot of Australians compare home loans using the advertised interest rate, which indicates how much interest you’ll be charged on your mortgage repayments. The lower your rate, the cheaper your home loan should be.

However, interest charges aren’t the only cost associated with home loans. Most mortgage lenders also charge fees on their home loans. A mortgage with a low interest rate and high fees can sometimes cost more than a mortgage with a high interest rate and low fees.

A home loan’s comparison rate combines the cost of interest with the cost of standard fees and charges into a single percentage rate. Mortgage lenders are required to display a comparison rate alongside their advertised rate to better indicate the home loan’s overall cost.

Keep in mind that to ensure consistency, all comparison rates are calculated assuming a $150,000 principal and interest mortgage with a 25 year term. As your home loan may be different, the comparison rate may not accurately reflect exactly how much your home loan may cost. Also, the comparison rate doesn’t include every home loan fee and charge, so it’s still important to compare home loans and read the fine print before you apply.

Does the Home Loan Rate Promise apply to discounted interest rate offers, such as honeymoon rates?

No. Temporary discounts to home loan interest rates will expire after a limited time, so they aren’t valid for comparing home loans as part of the Home Loan Rate Promise.

However, if your home loan has been discounted from the lender’s standard rate on a permanent basis, you can check if we can find an even lower rate that could apply to you.

How do I apply for a home improvement loan?

When you want to renovate your home, you may need to take out a loan to cover the costs. You could apply for a home improvement loan, which is a personal loan that you use to cover the costs of your home renovations. There is no difference between applying for this type of home improvement loan and applying for a standard personal loan. It would be best to check and compare the features, fees and details of the loan before applying. 

Besides taking out a home improvement loan, you could also:

  1. Use the equity in your house: Equity is the difference between your property’s value and the amount you still owe on your home loan. You may be able to access this equity by refinancing your home loan and then using it to finance your home improvement.  Speak with your lender or a mortgage broker about accessing your equity.
  2. Utilise the redraw facility of your home loan: Check whether the existing home loan has a redraw facility. A redraw facility allows you to access additional funds you’ve repaid into your home loan. Some lenders offer this on variable rate home loans but not on fixed. If this option is available to you, contact your lender to discuss how to access it.
  3. Apply for a construction loan: A construction loan is typically used when constructing a new property but can also be used as a home renovation loan. You may find that a construction loan is a suitable option as it enables you to draw funds as your renovation project progresses. You can compare construction home loans online or speak to a mortgage broker about taking out such a loan.
  4. Look into government grants: Check whether there are any government grants offered when you need the funds and whether you qualify. Initiatives like the HomeBuilder Grant were offered by the Federal Government for a limited period until April 2021. They could help fund your renovations either in full or just partially.  

Is the lowest home loan rate always the cheapest?

The home loan with the lowest interest rate may not always be the cheapest mortgage option for you. Sometimes a home loan with a low interest rate may charge high fees, which may cost more in total than a mortgage with a higher interest rate and no fees.

Consider checking the comparison rate, which combines interest and standard fees, to get a better idea of the overall cost of different home loan options.

How do you determine which home loan rates/products I’m shown?

When you check your home loan rate, you’ll supply some basic information about your current loan, including the amount owing on your mortgage and your current interest rate.

We’ll compare this information to the home loan options in the RateCity database and show you which home loan products you may be eligible to apply for.

 

What is a mortgage rate?

The interest rate on a home loan is sometimes called the mortgage rate. This percentage indicates how much interest the lender will charge you with each home loan repayment. Your interest rate is effectively the “cost” of “buying” the money you’re using to buy a property – the higher your mortgage rate, the more your home loan repayments may cost.

Using a home loan calculator, you can estimate how much your home loan repayments may cost, based on your mortgage rate, loan term, and loan amount. This may also be affected by whether you’re making principal and interest repayments or interest-only repayments, if you have a fixed rate or variable rate mortgage, and any fees and other charges that may apply.

What is 'principal and interest'?

‘Principal and interest’ loans are the most common type of home loans on the market. The principal part of the loan is the initial sum lent to the customer and the interest is the money paid on top of this, at the agreed interest rate, until the end of the loan.

By reducing the principal amount, the total of interest charged will also become smaller until eventually the debt is paid off in full.

What is an interest-only loan? How do I work out interest-only loan repayments?

An ‘interest-only’ loan is a loan where the borrower is only required to pay back the interest on the loan. Typically, banks will only let lenders do this for a fixed period of time – often five years – however some lenders will be happy to extend this.

Interest-only loans are popular with investors who aren’t keen on putting a lot of capital into their investment property. It is also a handy feature for people who need to reduce their mortgage repayments for a short period of time while they are travelling overseas, or taking time off to look after a new family member, for example.

While moving on to interest-only will make your monthly repayments cheaper, ultimately, you will end up paying your bank thousands of dollars extra in interest to make up for the time where you weren’t paying off the principal.