As a niche online home loans provider, Homestar Finance offers a relatively thin range of home loans.

This means its home loans are most suited to typical owner-occupiers, investors and refinancers rather than those seeking specialist loans such as SMSF loans or high-LVR loans.

Homestar Finance home loans come 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 tend to range from very low to moderately low. Its upfront fees are typically moderately high while its ongoing fees are very low.

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 its interest rates tend to be very low to moderately low, upfront fees can be moderately high – including fees such as valuation fees and legal fees. On the other hand, ongoing fees are usually very low.

Homestar Finance’s home loan interest rates differ depending on the type of borrower. Typically, interest rates follow a particular pricing structure:

• Owner-occupiers paying principal and interest (lowest rate)
• Owner-occupiers paying interest only OR investors paying principal and interest (second-lowest rate)
• Investors paying interest only (highest rate)

Variable home loans also tend to attract lower interest rates – at least initially – than fixed home loans.

Homestar Finance offers relatively no-frills online-only home loans, making it suitable for tech-savvy owner-occupiers, investors or refinancers. It 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 very low to moderately low.

In terms of fees, upfront fees are typically moderately high, although ongoing fees are very low.

Homestar Finance’s allowance for extra repayments, offset accounts and redraw facilities on some of its products also mean it’s likely to be an attractive option for 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.