Low cost online mortgage lender Athena has implemented fixed rate home loans to complement its existing variable rate offerings.
Launched this morning, the fixed home loan is available to both homeowners and investor borrowers looking to lock in a rate for a period of between 1 and 3 years. The lowest rates currently available are:
- 1 year: 2.09% pa (comparison rate of 2.02% pa *) for an owner-occupier repaying principal and interest (
- 2 years: 2.29% pa (comparison rate 2.04% pa *) for an owner-occupier repaying principal and interest (
- 3 years: 2.49% pa (2.11% pa comparison rate *) for an owner-occupier repaying principal and interest (
Like Athena’s “Accelerate” variable loans, which won the 2021 Mozo Experts Choice Award, fixed mortgage rates are scaled according to the loan-to-value ratio (LVR).
This means that when customers pay off more of their loan balance, their rate will automatically drop. For example, a borrower who starts with an 80% LVR on their loan will be reduced to a lower rate once they reach
How does Athena’s fixed rate loan compare?
So how does the new fixed rate loan compare to other fixed rate mortgages in the market? Unlike Athena’s variable rate loan which has some of the lowest rates in the Mozo database, the rates available with the fixed rate loan are not as accurate.
While the 1-year fixed rate for homeowner borrowers with an LVR of 80% is below the average in our database, the 2 and 3-year rates are both above average. And all three rates are well above the lowest comparable fixed rates currently tracked in our database.
|Athena Fixed Rate||Lowest (Mozo database) ^^||Average (Mozo database) ^^|
|1 year||2.19% pa (comparison rate 2.08% pa *)||1.59% pa (comparison rate of 2.15% pa *)||2.28%|
|2 years||2.39% per year (comparison rate of 2.11% per year *)||1.59% pa (2.10% pa comparison rate *)||2.23%|
|3 years||2.59% pa (comparison rate of 2.18% pa *)||1.85% pa (comparison rate of 2.13% pa *)||2.35%|
That said, Athena’s fixed rate loan has relatively low rates of return – the rate a mortgage holder will receive after their fixed term ends.
Repayment rates are usually much higher than the fixed rates offered, which means borrowers may end up paying a lot more than they were during the fixed period if they are not quick to refinance a loan. other loan or to renegotiate their rate with their current lender.
However, Athena’s return rates are actually lower than their current fixed rates, which means (if rates continue to be competitive) borrowers will be rolled over at a low rate after their fixed term ends.
RELATED: Athena denounces ‘loyalty penalty’ costing Australian borrowers billions
To learn more about the rates, fees, and features involved, check out our Fixed Home Loan review. Or if you’d like to see how it stacks up against other fixed deals, check out some of the great fixed home loan rates in the table below, or head over to the dedicated Mozo Fixed Rate Comparison Center to compare. loans from a range of lenders.
^^ Interest rates are based on a homeowner repaying principal and interest on a loan of $ 400,000 with an LVR of 80%. For more information on average mortgage rates, see our dedicated Australian home loan statistics page.
^ See information on the Mozo Experts Choice Home Loan Awards
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