Advertiser disclosure
Homestar Finance
Homestar Finance was established in 2004 and has an alliance with Origin Mortgage Management Services (Origin MMS). Homestar Finance home loans are backed by Australian and international mortgage funders.
Homestar Finance offers a limited range of home loans, including owner-occupier loans, investor loans and refinancing loans.
Homestar Finance is an online-only home lender, so it doesn’t have any branches or stores. However, it does offer access to a national network of loan specialists via the internet and over the phone.
Homestar Finance home loan repayment calculator
Thinking about taking out a home loan with Homestar Finance? Use our home loan calculator to see how much you’d have to repay under different borrowing scenarios. You can also see how Homestar Finance home loans compare with other options.
Your estimated mortgage repayments
at interest rate 1.79%
Total interest payable
$0
Total loan repayments
$0
Pros and cons
- Lower home loan fees than many other lenders
- Flexible loan options
- Loans have competitive interest rates
- No branch network
- Limited options to contact the lender
Homestar Finance home loans rates
Advertised Rate  1.79 % p.a Variable | Total estimated upfront fees $910 | Comparison Rate* 1.84 % p.a | Ongoing fee $0 | Go to site | More details | |
Product | Advertised Rate 1.94 % p.a Variable | Total estimated upfront fees $512 | Comparison Rate* 1.97 % p.a | Ongoing fee $0 | Go to site | More details |
Product | Advertised Rate 2.04 % p.a Variable | Total estimated upfront fees $512 | Comparison Rate* 2.07 % p.a | Ongoing fee $0 | Go to site | More details |
Product | Advertised Rate 2.04 % p.a Variable | Total estimated upfront fees $512 | Comparison Rate* 2.07 % p.a | Ongoing fee $0 | Go to site | More details |
Product | Advertised Rate 2.34 % p.a Fixed - 1 year | Total estimated upfront fees $512 | Comparison Rate* 2.10 % p.a | Ongoing fee $0 | Go to site | More details |
Product | Advertised Rate 2.34 % p.a Fixed - 3 years | Total estimated upfront fees $512 | Comparison Rate* 2.14 % p.a | Ongoing fee $0 | Go to site | More details |
Advertised Rate 1.79 % p.a Fixed - 2 years | Total estimated upfront fees $515 | Comparison Rate* 2.16 % p.a | Ongoing fee $395 annually | Go to site | More details | |
Product | Advertised Rate 2.14 % p.a Variable | Total estimated upfront fees $512 | Comparison Rate* 2.17 % p.a | Ongoing fee $0 | Go to site | More details |
Product | Advertised Rate 2.44 % p.a Fixed - 1 year | Total estimated upfront fees $512 | Comparison Rate* 2.20 % p.a | Ongoing fee $0 | Go to site | More details |
Product | Advertised Rate 2.44 % p.a Fixed - 3 years | Total estimated upfront fees $512 | Comparison Rate* 2.24 % p.a | Ongoing fee $0 | Go to site | More details |
Advertised Rate 2.44 % p.a Fixed - 1 year | Total estimated upfront fees $910 | Comparison Rate* 2.29 % p.a | Ongoing fee $0 | Go to site | More details | |
Advertised Rate 2.44 % p.a Fixed - 3 years | Total estimated upfront fees $515 | Comparison Rate* 2.32 % p.a | Ongoing fee $0 | Go to site | More details | |
Product | Advertised Rate 2.64 % p.a Fixed - 4 years | Total estimated upfront fees $512 | Comparison Rate* 2.33 % p.a | Ongoing fee $0 | Go to site | More details |
Product | Advertised Rate 2.74 % p.a Fixed - 5 years | Total estimated upfront fees $512 | Comparison Rate* 2.34 % p.a | Ongoing fee $0 | Go to site | More details |
Advertised Rate 2.34 % p.a Variable | Total estimated upfront fees $512 | Comparison Rate* 2.37 % p.a | Ongoing fee $0 | Go to site | More details | |
Advertised Rate 2.34 % p.a Variable | Total estimated upfront fees $512 | Comparison Rate* 2.37 % p.a | Ongoing fee $0 | Go to site | More details | |
Product | Advertised Rate 2.64 % p.a Fixed - 1 year | Total estimated upfront fees $512 | Comparison Rate* 2.40 % p.a | Ongoing fee $0 | Go to site | More details |
Advertised Rate 2.64 % p.a Fixed - 1 year | Total estimated upfront fees $515 | Comparison Rate* 2.40 % p.a | Ongoing fee $0 | Go to site | More details | |
Product | Advertised Rate 2.64 % p.a Fixed - 2 years | Total estimated upfront fees $512 | Comparison Rate* 2.42 % p.a | Ongoing fee $0 | Go to site | More details |
Advertised Rate 1.99 % p.a Fixed - 2 years | Total estimated upfront fees $515 | Comparison Rate* 2.44 % p.a | Ongoing fee $395 annually | Go to site | More details | |
Advertised Rate 2.64 % p.a Fixed - 3 years | Total estimated upfront fees $515 | Comparison Rate* 2.44 % p.a | Ongoing fee $0 | Go to site | More details | |
Product | Advertised Rate 2.64 % p.a Fixed - 3 years | Total estimated upfront fees $512 | Comparison Rate* 2.44 % p.a | Ongoing fee $0 | Go to site | More details |
Product | Advertised Rate 2.84 % p.a Fixed - 5 years | Total estimated upfront fees $512 | Comparison Rate* 2.44 % p.a | Ongoing fee $0 | Go to site | More details |
Product | Advertised Rate 2.44 % p.a Variable | Total estimated upfront fees $512 | Comparison Rate* 2.47 % p.a | Ongoing fee $0 | Go to site | More details |
Advertised Rate 2.44 % p.a Variable | Total estimated upfront fees $512 | Comparison Rate* 2.47 % p.a | Ongoing fee $0 | Go to site | More details | |
Advertised Rate 2.44 % p.a Variable | Total estimated upfront fees $512 | Comparison Rate* 2.47 % p.a | Ongoing fee $0 | Go to site | More details | |
Advertised Rate 2.74 % p.a Fixed - 1 year | Total estimated upfront fees $515 | Comparison Rate* 2.50 % p.a | Ongoing fee $0 | Go to site | More details | |
Product | Advertised Rate 2.74 % p.a Fixed - 1 year | Total estimated upfront fees $512 | Comparison Rate* 2.50 % p.a | Ongoing fee $0 | Go to site | More details |
Product | Advertised Rate 2.74 % p.a Fixed - 2 years | Total estimated upfront fees $512 | Comparison Rate* 2.52 % p.a | Ongoing fee $0 | Go to site | More details |
Product | Advertised Rate 2.84 % p.a Fixed - 4 years | Total estimated upfront fees $512 | Comparison Rate* 2.53 % p.a | Ongoing fee $0 | Go to site | More details |
Advertised Rate 2.84 % p.a Fixed - 4 years | Total estimated upfront fees $512 | Comparison Rate* 2.53 % p.a | Ongoing fee $0 | Go to site | More details | |
Product | Advertised Rate 2.54 % p.a Fixed - 4 years | Total estimated upfront fees $512 | Comparison Rate* 2.54 % p.a | Ongoing fee $0 | Go to site | More details |
Advertised Rate 2.74 % p.a Fixed - 3 years | Total estimated upfront fees $515 | Comparison Rate* 2.54 % p.a | Ongoing fee $0 | Go to site | More details | |
Advertised Rate 2.94 % p.a Fixed - 4 years | Total estimated upfront fees $512 | Comparison Rate* 2.63 % p.a | Ongoing fee $0 | Go to site | More details | |
Product | Advertised Rate 2.94 % p.a Fixed - 4 years | Total estimated upfront fees $512 | Comparison Rate* 2.63 % p.a | Ongoing fee $0 | Go to site | More details |
Product | Advertised Rate 2.74 % p.a Fixed - 3 years | Total estimated upfront fees $512 | Comparison Rate* 2.64 % p.a | Ongoing fee $0 | Go to site | More details |
Product | Advertised Rate 3.04 % p.a Fixed - 5 years | Total estimated upfront fees $512 | Comparison Rate* 2.64 % p.a | Ongoing fee $0 | Go to site | More details |
Advertised Rate 3.04 % p.a Fixed - 5 years | Total estimated upfront fees $512 | Comparison Rate* 2.64 % p.a | Ongoing fee $0 | Go to site | More details | |
Advertised Rate 2.64 % p.a Variable | Total estimated upfront fees $512 | Comparison Rate* 2.67 % p.a | Ongoing fee $0 | Go to site | More details | |
Advertised Rate 2.94 % p.a Fixed - 1 year | Total estimated upfront fees $512 | Comparison Rate* 2.70 % p.a | Ongoing fee $0 | Go to site | More details | |
Advertised Rate 2.94 % p.a Fixed - 2 years | Total estimated upfront fees $512 | Comparison Rate* 2.72 % p.a | Ongoing fee $0 | Go to site | More details | |
Advertised Rate 2.94 % p.a Fixed - 3 years | Total estimated upfront fees $512 | Comparison Rate* 2.75 % p.a | Ongoing fee $0 | Go to site | More details | |
Product | Advertised Rate 3.14 % p.a Fixed - 5 years | Total estimated upfront fees $512 | Comparison Rate* 2.75 % p.a | Ongoing fee $0 | Go to site | More details |
Advertised Rate 3.14 % p.a Fixed - 5 years | Total estimated upfront fees $512 | Comparison Rate* 2.75 % p.a | Ongoing fee $0 | Go to site | More details | |
Advertised Rate 2.74 % p.a Variable | Total estimated upfront fees $512 | Comparison Rate* 2.77 % p.a | Ongoing fee $0 | Go to site | More details | |
Advertised Rate 3.04 % p.a Fixed - 1 year | Total estimated upfront fees $512 | Comparison Rate* 2.80 % p.a | Ongoing fee $0 | Go to site | More details | |
Advertised Rate 3.04 % p.a Fixed - 2 years | Total estimated upfront fees $512 | Comparison Rate* 2.82 % p.a | Ongoing fee $0 | Go to site | More details | |
Advertised Rate 3.14 % p.a Fixed - 4 years | Total estimated upfront fees $512 | Comparison Rate* 2.83 % p.a | Ongoing fee $0 | Go to site | More details | |
Advertised Rate 3.04 % p.a Fixed - 3 years | Total estimated upfront fees $512 | Comparison Rate* 2.85 % p.a | Ongoing fee $0 | Go to site | More details | |
Advertised Rate 3.24 % p.a Fixed - 4 years | Total estimated upfront fees $512 | Comparison Rate* 2.93 % p.a | Ongoing fee $0 | Go to site | More details | |
Advertised Rate 3.34 % p.a Fixed - 5 years | Total estimated upfront fees $512 | Comparison Rate* 2.95 % p.a | Ongoing fee $0 | Go to site | More details | |
Advertised Rate 3.44 % p.a Fixed - 5 years | Total estimated upfront fees $512 | Comparison Rate* 3.05 % p.a | Ongoing fee $0 | Go to site | More details |
Homestar Finance customer service
Homestar Finance customers can make contact with customer support by calling the contact centre or by using the online enquiry form. As Homestar Finance is an online-only lender there is no option for face-to-face customer support. Customers can access their loan details through an online banking interface.
- Customer service centre (phone)
- Online banking
How to apply for a Homestar home loan
Borrowers wanting to apply for a Homestar Finance home loan can either complete an online enquiry form or call through to the Contact Centre for more support.
Before applying for a Homestar Finance home loan, consider how much you can afford to borrow and what other costs you may need to pay.
To apply for a Homestar Finance home loan, you will need to supply the following information:
- Proof of identity
- Proof of income and employment
- Information about the property you’re using as security
- A list of assets and liabilities
About Homestar Finance home loans
As an online home loan provider, Homestar Finance offers a relatively thin range of home loans.
This means its home loans are most suited to more typical owner-occupiers, investors and refinancers rather than those seeking specialist loans such as SMSF loans or high-LVR loans.
Homestar Finance home loans are available with a range of interest rate options:
- Variable rate
- Fixed rate
- Principal and interest
- Interest-only
- Split loans
Homestar Finance home loans have a maximum loan term of 30 years. Offset accounts and redraw facilities are available with selected mortgages from Homestar Finance.
Unlimited extra repayments are allowed on some of its home loan offerings, while others allow extra repayments with restrictions.
Homestar Finance home loan rates
Unlike many other banks and home loan lenders, Homestar Finance operates online only and doesn’t have any branches. Thanks to lower overheads, it can pass savings on to customers in the form of lower interest rates.
While Homestar Finance's home loan interest rates can often be relatively low, it's important to also consider the cost of upfront and ongoing fees before you apply for a mortgage.
Homestar Finance’s home loan interest rates differ depending on the type of borrower. Typically, owner-occupiers paying principal and interest are offered the lowest rates, followed by owner-occupiers paying interest only or investors paying principal and interest, then by investors paying interest only.
Homestar Finance home loans review
Homestar Finance offers relatively no-frills online-only home loans, which may be more suitable for tech-savvy owner-occupiers, investors or refinancers. Homestar doesn’t offer specialist mortgages such as low-doc mortgages, high-LVR mortgages or SMSF mortgages.
Because it doesn’t have to maintain costly branches and in-branch staff, Homestar Finance home loan rates tend to be lower than those of many other banks, though it’s important to also consider the cost of upfront and ongoing fees.
Homestar Finance offers home loans with options for extra repayments, offset accounts and redraw facilities, which may appeal to those who want more control over their mortgage.
Homestar Finance home loans can be principal and interest or interest-only, while borrowers can also choose for their mortgages to be variable, fixed or split.
Homestar Finance top home loans products
Learn more about home loans
When do mortgage payments start after settlement?
Generally speaking, your first mortgage payment falls due one month after the settlement date. However, this may vary based on your mortgage terms. You can check the exact date by contacting your lender.
Usually your settlement agent will meet the seller’s representatives to exchange documents at an agreed place and time. The balance purchase price is paid to the seller. The lender will register a mortgage against your title and give you the funds to purchase the new home.
Once the settlement process is complete, the lender allows you to draw down the loan. The loan amount is debited from your loan account. As soon as the settlement paperwork is sorted, you can collect the keys to your new home and work your way through the moving-in checklist.
What are the features of home loans for expats from Westpac?
If you’re an Australian citizen living and working abroad, you can borrow to buy a property in Australia. With a Westpac non-resident home loan, you can borrow up to 80 per cent of the property value to purchase a property whilst living overseas. The minimum loan amount for these loans is $25,000, with a maximum loan term of 30 years.
The interest rates and other fees for Westpac non-resident home loans are the same as regular home loans offered to borrowers living in Australia. You’ll have to submit proof of income, six-month bank statements, an employment letter, and your last two payslips. You may also be required to submit a copy of your passport and visa that shows you’re allowed to live and work abroad.
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 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:
- 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.
- 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.
- 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.
- 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.
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.
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 Westpac’s first home buyer loan?
If you’re a first home buyer looking to apply for a home loan with Westpac, they offer an online home loan application. They suggest the application can be completed in about 20 minutes. Based on the information you provide, Westpac will advise you the amount you can borrow and the costs associated with any possible home loan.
You can use Westpac’s online mortgage calculators to estimate your borrowing power. You can also work out the time it might take to save up for the deposit, and the size of your home loan repayments.
When applying for a home loan with Westpac, you’re assigned a home finance manager who can address your concerns and provide information. The manager will also offer guidance on any government grants you may be eligible for.
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.
Can first home buyers apply for an ING home loan?
First home buyers can apply for an ING home loan, but first, they need to select the most suitable home loan product and calculate the initial deposit on their home loan.
First-time buyers can also use ING’s online tool to estimate the amount they can borrow. ING offers home loan applicants a free property report to look up property value estimates.
First home loan applicants struggling to understand the terms used may consider looking up ING’s first home buyer guide. Once the home buyer is ready to apply for the loan, they can complete an online application or call ING at 1800 100 258 during regular business hours.
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.
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.
How to apply for a pre-approval home loan from Bendigo Bank?
Applying for pre-approval on your home loan gives you confidence in your ability to secure finance while looking at potential new homes. You can get a free and personalised pre-approval home loan from Bendigo Bank in just a few minutes, without any credit checks or paperwork.
Bendigo Bank offers pre-approval for home loans that allow you to understand the home loan size you may be able to get before looking for a new home.
With the pre-approval, Bendigo Bank provides an estimate of your borrowing power. This figure incorporates stamp duty, lenders mortgage insurance (LMI) and any first home buyer incentives you may be eligible for. You may also qualify for the First Home Loan Deposit Scheme initiative, depending on your circumstances.
To apply for a pre-approval on your home loan from Bendigo Bank, all you need to do is fill in a smart form. You could also contact the bank directly on 1300 236 344.
How do I get a pre-approved home loan with Aussie?
Getting Aussie home loan pre-approval means receiving conditional support from Aussie Home Loans to borrow the money you need to buy a home.
It’s an indication of the approximate amount Aussie may offer you, subject to some terms and conditions. Keep in mind, having a pre-approved home loan does not guarantee an actual approval of your loan when it comes time to buy.
Aussie home loan pre-approval often involves speaking to one of the lender’s brokers. You can make an appointment online. You’ll often have to submit your personal details and other information about your assets, income, liabilities and expenses. It’s worth remembering that a pre-approved loan is usually valid for a few months.
What is the average length of a home loan?
Most Aussie lenders offer home loans with a 30-year term, meaning that you should pay back the full loan amount and the interest you owe on the amount in 30 years.
However, home loans can also have a shorter or longer term. They may be as low as ten years or up to 45 years, depending on the product and lender.
It’s worth remembering that a longer loan term usually means you’ll end up paying a lot more interest in total, but your scheduled repayments may be more manageable. In contrast, you could opt for a shorter loan term if you are comfortable making large repayments in exchange for paying less interest over the term of the loan.
