Online lender Athena has slashed interest rates on its mortgage products for all existing and new customers, to provide Australia’s lowest fee-free variable rate.
Owner occupiers holding more than 40 per cent equity and paying principal and interest may be able to benefit from the new variable rate of just 1.99 per cent (comparison rate 1.99 per cent). A similar loan is also available to investors, with an interest rate of 2.39 per cent (comparison rate 2.39 per cent).
As one of Australia’s newer mortgage lenders, Athena has cut its rates seven times since its launch in 2019 – five times passing on cash rate cuts from the Reserve Bank of Australia (RBA) and twice outside of the RBA cycle. Athena automatically matches rates for new and existing customers for like for like loans. Additionally, Athena’s AcceleRATES program means that the more a customer pays off their loan, the more Athena automatically lowers their rate, which could lead to paying off properties even sooner and saving even more on interest charges.
According to Athena, home loan refinance volumes grew by 25 per cent in 2020, and have grown a further 10 per cent in 2021 so far. Athena co-founder and CEO, Nathan Walsh, said that Australian borrowers are looking for better deals on home loan rates and fees, with some package home loans costing Aussies up to $11,000 in fees according to APRA statistics.
“Too many are paying a hefty tax for loyalty, particularly on fixed rate loans marketed as ‘low rate’ but that convert to egregiously high standard variable rates. This is money better off in customers’ pockets, not the banks.”
Before you consider refinancing your home loan, it’s important to compare a range of mortgage deals and consider all of their features and benefits, not just their interest rates. For example, while there are several mortgage lenders offering lower interest rates than Athena, many of these are fixed rates, which may not be ideally suited to every Australian borrower’s financial situation. A mortgage broker may be able provide further advice on which home loans may best suit your needs.