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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

Owner occupied Homestar Finance home loan rates


Loan typePrincipal & Interest rateInterest Only
Owner Occupied Variable Home Loan (Min Deposit 30%)
3% p.a.
3.03% p.a. Comparison rate
Owner Occupied Variable Home Loan (Min Deposit 20%)
3.1% p.a.
3.13% p.a. Comparison rate
1 Year Owner Occupied Home Loan (Min Deposit 20%)
6.7% p.a.
3.18% p.a. Comparison rate
7% p.a.
3.49% p.a. Comparison rate
2 Year Owner Occupied Home Loan (Min Deposit 20%)
7.3% p.a.
3.89% p.a. Comparison rate
3 Year Owner Occupied Home Loan (Min Deposit 20%)
7.2% p.a.
3.99% p.a. Comparison rate
7.5% p.a.
4.31% p.a. Comparison rate
4 Year Owner Occupied Home Loan (Min Deposit 20%)
7.2% p.a.
4.35% p.a. Comparison rate
7.5% p.a.
4.67% p.a. Comparison rate
5 Year Owner Occupied Home Loan (Min Deposit 20%)
7.2% p.a.
4.69% p.a. Comparison rate
7.5% p.a.
5.01% p.a. Comparison rate
Star Gold Home Loan (Min Deposit 40%)
2.44% p.a.
2.49% p.a. Comparison rate
Star Essentials Home Loan (Min Deposit 40%)
2.6% p.a.
2.63% p.a. Comparison rate
Star Classic Owner Occupied (Min Deposit 30%)
2.7% p.a.
2.73% p.a. Comparison rate
Star Essentials Home Loan (Min Deposit 20%)
2.7% p.a.
2.73% p.a. Comparison rate
Star Classic Owner Occupied (Min Deposit 20%)
2.8% p.a.
2.83% p.a. Comparison rate
Star Classic Owner Occupied (Min Deposit 10%)
3.3% p.a.
3.33% p.a. Comparison rate
2 Year Fixed Rate Special Owner Occupied (Min Deposit 20%)
7% p.a.
3.58% p.a. Comparison rate

Investment purpose Homestar Finance home loan rates


Loan typePrincipal & Interest rateInterest Only
Investment Property Home Loan (Min Deposit 30%)
2.94% p.a.
2.97% p.a. Comparison rate
3.24% p.a.
3.27% p.a. Comparison rate
Investment Property Home Loan (Min Deposit 20%)
3.04% p.a.
3.07% p.a. Comparison rate
3.34% p.a.
3.37% p.a. Comparison rate
1 Year Investment Property Home Loan (Min Deposit 20%)
7.24% p.a.
3.73% p.a. Comparison rate
2 Year Investment Property Home Loan (Min Deposit 20%)
7.54% p.a.
4.14% p.a. Comparison rate
3 Year Investment Property Home Loan (Min Deposit 20%)
7.74% p.a.
4.56% p.a. Comparison rate
4 Year Investment Property Home Loan (Min Deposit 20%)
7.44% p.a.
4.61% p.a. Comparison rate
7.74% p.a.
4.92% p.a. Comparison rate
5 Year Investment Property Home Loan (Min Deposit 20%)
7.44% p.a.
4.95% p.a. Comparison rate
7.74% p.a.
5.27% p.a. Comparison rate
1 Year Star Classic Investment Fixed (Min Deposit 20%)
6.94% p.a.
3.43% p.a. Comparison rate
2 Year Fixed Rate Special Investment (Min Deposit 20%)
7.24% p.a.
3.83% p.a. Comparison rate
3 Year Star Classic Investment Fixed (Min Deposit 20%)
7.44% p.a.
4.24% p.a. Comparison rate

Homestar Finance home loan 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.

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With a repayment type

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Deposit amount %

Loan term

Your estimated mortgage repayments

at interest rate 2.44%

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Total loan repayments


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 home loans

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.

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.

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.  

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 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.

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. 

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 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. 

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.

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.

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.

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.