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.

I'd like to borrow

$

I am an

Loan term

With a repayment type

Your estimated repayments

at interest rate 2.29 %

Total interest payable

$0

Total amount payable

$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

Product
Advertised Rate
Total estimated upfront fees
Comparison Rate*
Ongoing fee
Go to site
Company

2.19%

Variable

$512

2.22%

$0
Homestar Finance
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2.29%

Variable

$512

2.32%

$0
Homestar Finance
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2.29%

Variable

$512

2.32%

$0
Homestar Finance
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2.06%

Fixed - 2 years

$512

2.36%

$0
Homestar Finance
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2.49%

Fixed - 3 years

$512

2.37%

$0
Homestar Finance
More details

1.98%

Fixed - 1 year

$0

2.38%

$395 annually
Homestar Finance
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2.06%

Fixed - 3 years

$395

2.38%

$395 annually
Homestar Finance
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1.98%

Fixed - 1 year

$0

2.41%

$395 annually
Homestar Finance
More details

2.39%

Variable

$512

2.42%

$0
Homestar Finance
More details

2.69%

Fixed - 4 years

$512

2.45%

$0
Homestar Finance
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2.59%

Fixed - 2 years

$512

2.47%

$0
Homestar Finance
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2.59%

Fixed - 2 years

$512

2.50%

$0
Homestar Finance
More details

2.49%

Variable

$512

2.52%

$0
Homestar Finance
More details

2.69%

Fixed - 1 year

$512

2.54%

$0
Homestar Finance
More details

2.69%

Fixed - 2 years

$512

2.55%

$0
Homestar Finance
More details

2.79%

Fixed - 4 years

$512

2.55%

$0
Homestar Finance
More details

2.89%

Fixed - 5 years

$512

2.55%

$0
Homestar Finance
More details

2.69%

Fixed - 3 years

$512

2.57%

$0
Homestar Finance
More details

2.69%

Fixed - 3 years

$512

2.57%

$0
Homestar Finance
More details

2.18%

Fixed - 1 year

$265

2.58%

$395 annually
Homestar Finance
More details

2.18%

Fixed - 1 year

$512

2.58%

$0
Homestar Finance
More details

2.18%

Fixed - 1 year

$512

2.58%

$0
Homestar Finance
More details

2.26%

Fixed - 3 years

$265

2.58%

$395 annually
Homestar Finance
More details

2.59%

Variable

$512

2.62%

$0
Homestar Finance
More details

2.79%

Fixed - 1 year

$512

2.64%

$0
Homestar Finance
More details

2.79%

Fixed - 2 years

$512

2.65%

$0
Homestar Finance
More details

2.79%

Fixed - 2 years

$512

2.65%

$0
Homestar Finance
More details

2.89%

Fixed - 4 years

$512

2.65%

$0
Homestar Finance
More details

2.89%

Fixed - 4 years

$512

2.65%

$0
Homestar Finance
More details

2.99%

Fixed - 5 years

$512

2.66%

$0
Homestar Finance
More details

2.79%

Fixed - 3 years

$512

2.67%

$0
Homestar Finance
More details

2.69%

Variable

$512

2.72%

$0
Homestar Finance
More details

2.69%

Variable

$512

2.72%

$0
Homestar Finance
More details

2.89%

Fixed - 1 year

$512

2.74%

$0
Homestar Finance
More details

2.89%

Fixed - 2 years

$512

2.75%

$0
Homestar Finance
More details

2.99%

Fixed - 4 years

$512

2.75%

$0
Homestar Finance
More details

2.99%

Fixed - 4 years

$512

2.75%

$0
Homestar Finance
More details

3.09%

Fixed - 5 years

$512

2.76%

$0
Homestar Finance
More details

3.09%

Fixed - 5 years

$512

2.76%

$0
Homestar Finance
More details

2.89%

Fixed - 3 years

$512

2.77%

$0
Homestar Finance
More details

2.79%

Variable

$512

2.82%

$0
Homestar Finance
More details

2.79%

Variable

$512

2.82%

$0
Homestar Finance
More details

2.99%

Fixed - 1 year

$512

2.84%

$0
Homestar Finance
More details

3.09%

Fixed - 4 years

$512

2.85%

$0
Homestar Finance
More details

2.99%

Fixed - 2 years

$512

2.86%

$0
Homestar Finance
More details

3.19%

Fixed - 5 years

$512

2.86%

$0
Homestar Finance
More details

3.19%

Fixed - 5 years

$512

2.86%

$0
Homestar Finance
More details

2.99%

Fixed - 3 years

$512

2.87%

$0
Homestar Finance
More details

3.19%

Fixed - 4 years

$512

2.95%

$0
Homestar Finance
More details

3.29%

Fixed - 5 years

$512

2.96%

$0
Homestar Finance
More details

3.39%

Fixed - 5 years

$512

3.06%

$0
Homestar Finance
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.

Learn more about Homestar Finance

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.

Who offers 40 year mortgages?

Home loans spanning 40 years are offered by select lenders, though the loan period is much longer than a standard 30-year home loan. You're more likely to find a maximum of 35 years, such as is the case with Teacher’s Mutual Bank

Currently, 40 year home loan lenders in Australia include AlphaBeta Money, BCU, G&C Mutual Bank, Pepper, and Sydney Mutual Bank.

Even though these lengthier loans 35 to 40 year loans do exist on the market, they are not overwhelmingly popular, as the extra interest you pay compared to a 30-year loan can be over $100,000 or more.

Are bad credit home loans dangerous?

Bad credit home loans can be dangerous if the borrower signs up for a loan they’ll struggle to repay. This might occur if the borrower takes out a mortgage at the limit of their financial capacity, especially if they have some combination of a low income, an insecure job and poor savings habits.

Bad credit home loans can also be dangerous if the borrower buys a home in a stagnant or falling market – because if the home has to be sold, they might be left with ‘negative equity’ (where the home is worth less than the mortgage).

That said, bad credit home loans can work out well if the borrower is able to repay the mortgage – for example, if they borrow conservatively, have a decent income, a secure job and good savings habits. Another good sign is if the borrower buys a property in a market that is likely to rise over the long term.

How can I calculate interest on my home loan?

You can calculate the total interest you will pay over the life of your loan by using a mortgage calculator. The calculator will estimate your repayments based on the amount you want to borrow, the interest rate, the length of your loan, whether you are an owner-occupier or an investor and whether you plan to pay ‘principal and interest’ or ‘interest-only’.

If you are buying a new home, the calculator will also help you work out how much you’ll need to pay in stamp duty and other related costs.

Who has the best home loan?

Determining who has the ‘best’ home loan really does depend on your own personal circumstances and requirements. It may be tempting to judge a loan merely on the interest rate but there can be added value in the extras on offer, such as offset and redraw facilities, that aren’t available with all low rate loans.

To determine which loan is the best for you, think about whether you would prefer the consistency of a fixed loan or the flexibility and potential benefits of a variable loan. Then determine which features will be necessary throughout the life of your loan. Thirdly, consider how much you are willing to pay in fees for the loan you want. Once you find the perfect combination of these three elements you are on your way to determining the best loan for you. 

How can I get a home loan with bad credit?

If you want to get a home loan with bad credit, you need to convince a lender that your problems are behind you and that you will, indeed, be able to repay a mortgage.

One step you might want to take is to visit a mortgage broker who specialises in bad credit home loans (also known as ‘non-conforming home loans’ or ‘sub-prime home loans’). An experienced broker will know which lenders to approach, and how to plead your case with each of them.

Two points to bear in mind are:

  • Many home loan lenders don’t provide bad credit mortgages
  • Each lender has its own policies, and therefore favours different things

If you’d prefer to directly approach the lender yourself, you’re more likely to find success with smaller non-bank lenders that specialise in bad credit home loans (as opposed to bigger banks that prefer ‘vanilla’ mortgages). That’s because these smaller lenders are more likely to treat you as a unique individual rather than judge you according to a one-size-fits-all policy.

Lenders try to minimise their risk, so if you want to get a home loan with bad credit, you need to do everything you can to convince lenders that you’re safer than your credit history might suggest. If possible, provide paperwork that shows:

  • You have a secure job
  • You have a steady income
  • You’ve been reducing your debts
  • You’ve been increasing your savings

What happens to my home loan when interest rates rise?

If you are on a variable rate home loan, every so often your rate will be subject to increases and decreases. Rate changes are determined by your lender, not the Reserve Bank of Australia, however often when the RBA changes the cash rate, a number of banks will follow suit, at least to some extent. You can use RateCity cash rate to check how the latest interest rate change affected your mortgage interest rate.

When your rate rises, you will be required to pay your bank more each month in mortgage repayments. Similarly, if your interest rate is cut, then your monthly repayments will decrease. Your lender will notify you of what your new repayments will be, although you can do the calculations yourself, and compare other home loan rates using our mortgage calculator.

There is no way of conclusively predicting when interest rates will go up or down on home loans so if you prefer a more stable approach consider opting for a fixed rate loan.

How common are low-deposit home loans?

Low-deposit home loans aren’t as common as they once were, because they’re regarded as relatively risky and the banking regulator (APRA) is trying to reduce risk from the mortgage market.

However, if you do your research, you’ll find there is still a fairly wide selection of banks, credit unions and non-bank lenders that offers low-deposit home loans.

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.

How will Real Time Ratings help me find a new home loan?

The home loan market is complex. With almost 4,000 different loans on offer, it’s becoming increasingly difficult to work out which loans work for you.

That’s where Real Time RatingsTM can help. Our system automatically filters out loans that don’t fit your requirements and ranks the remaining loans based on your individual loan requirements and preferences.

Best of all, the ratings are calculated in real time so you know you’re getting the most current information.

Does Australia have no-deposit home loans?

Australia no longer has no-deposit home loans – or 100 per cent home loans as they’re also known – because they’re regarded as too risky.

However, some lenders allow some borrowers to take out mortgages with a 5 per cent deposit.

Another option is to source a deposit from elsewhere – either by using a parental guarantee or by drawing out equity from another property.

Does Australia have no cost refinancing?

No Cost Refinancing is an option available in the US where the lender or broker covers your switching costs, such as appraisal fees and settlement costs. Unfortunately, no cost refinancing isn’t available in Australia.

Can I change jobs while I am applying for a home loan?

Whether you’re a new borrower or you’re refinancing your home loan, many lenders require you to be in a permanent job with the same employer for at least 6 months before applying for a home loan. Different lenders have different requirements. 

If your work situation changes for any reason while you’re applying for a mortgage, this could reduce your chances of successfully completing the process. Contacting the lender as soon as you know your employment situation is changing may allow you to work something out. 

Can I get a home loan if I am on an employment contract?

Some lenders will allow you to apply for a mortgage if you are a contractor or freelancer. However, many lenders prefer you to be in a permanent, ongoing role, because a more stable income means you’re more likely to keep up with your repayments.

If you’re a contractor, freelancer, or are otherwise self-employed, it may still be possible to apply for a low-doc home loan, as these mortgages require less specific proof of income.

Will I have to pay lenders' mortgage insurance twice if I refinance?

If your deposit was less than 20 per cent of your property’s value when you took out your original loan, you may have paid lenders’ mortgage insurance (LMI) to cover the lender against the risk that you may default on your repayments. 

If you refinance to a new home loan, but still don’t have enough deposit and/or equity to provide 20 per cent security, you’ll need to pay for the lender’s LMI a second time. This could potentially add thousands or tens of thousands of dollars in upfront costs to your mortgage, so it’s important to consider whether the financial benefits of refinancing may be worth these costs.