Note slash! Homestar Finance offers one of Australia’s lowest fixed rate home loans

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The home loan rate war has continued to escalate as prices soar across the country and buyers rush to buy their dream home.

Homestar Finance has reduced its two-year fixed rate by 14 basis points to 1.74% per annum (comparative rate of 2.23% per annum*).

The offer is available from today, although wWith a loan-to-value ratio (LVR) of 80%, borrowers will need a minimum deposit of 20% to apply.

The loan has additional repayments of up to $20,000 available each year, free online withdrawals, multiple loan splits, and the option to make weekly, semi-monthly, or monthly repayments.


Are you buying a house or looking to refinance? The table below shows home loans with some of the lowest variable interest rates on the market for homeowners.



Lender

Rate Type Gap Redraw Ongoing charges The initial costs LVR Lump sum reimbursement Additional refunds Pre-approval

Variable More details
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable – 2 years (LVR
  • Fast turnaround times, can meet 30 day settlement
  • For purchase and refinancing, down payment min 20%
  • No ongoing or monthly fees, add 0.10% compensation

Variable More details
ZERO APPLICATION FEESCOMPENSATION WITHOUT COST

Homeowner Accelerates – Celebrate (LVR
  • We lower your rate based on the amount you have paid back on your loan
  • Automatic Fare Matching
  • No upfront or ongoing fees

Variable More details
AN EASY DIGITAL APPLICATION

Careful variable real estate loan (capital and interest) (LVR
  • No ongoing fees – None!
  • Unlimited additional refunds
  • Redraw – Access your additional payments if you need them

Variable More details
REFINANCING IN MINUTES, NOT WEEKS

Owner Occupied Variable, Principal & Interest (Refinance Only)(LVR
  • No application or ongoing fees.
  • 100% free clearing sub-account.
  • Fast online application, approval in minutes not weeks.
  • Mobile app, Visa debit card, Apple and Google Pay
  • Refinance loans and variable rates only.

Variable More details
BENEFIT FROM A REDUCED GREEN RATE*

Green real estate loan (capital and interest)

  • Quick turnaround, can meet 30 day settlement
  • Save Thousands of Dollars and Make an Eco-Friendly Choice on Your Loan for Homes Under 12 Months

According to research by Savings.com.au, Homestar has knocked the big four Westpac lenders, which previously held the lowest two-year fixed rate, off its perch.

Greater Bank has the lowest fixed rate in the market as a whole with a one-year fixed rate of 1.69% per annum (comparative rate of 3.49% per annum), while UBank has the three-year fixed rate years the lowest at 1.75% (2.22% per year).

Homestar also offers one of the lowest variable rates on the market at 1.79% per annum (comparison rate of 1.84% per annum).

Although advertised rates can be attractive, comparison rate and return rate are often just as important when it comes to fixed rate mortgages.

Greater Bank’s comparison rate on its one-year fixed rate can be considered quite high in today’s market, while Homestar’s comparison rate is still quite competitive.

In the wake of the last Reserve Bank (RBA) cash rate cut in November, the majority of lenders left floating rates unchanged and instead made sweeping cuts to fixed rates.

With the RBA saying the cash rate is unlikely to be raised before the end of 2024, many borrowers might wonder if now is the time to make amends.

Resimac lowers rates for self-employed borrowers

Resimac, another non-bank lender, has cut interest rates and waived some fees on a range of its low-cost home loans in a bid to help self-employed Australians buy property or refinance.

Low-documentation home loans are typically for the self-employed and typically don’t have the same documents required for a home loan, such as recent pay stubs and payslips.

Basic criteria: a loan amount of $400,000, variable, fixed, principal and interest (P&I) real estate loans with an LVR (loan-to-value) ratio of at least 80%. However, the “Compare mortgages” table allows calculations to be made on the variables selected and entered by the user. All products will list the LVR with the product and price list which is clearly published on the product supplier’s website. Monthly repayments, once the basic criteria are modified by the user, will be based on the advertised prices of the selected products and determined by the loan amount, repayment type, loan term and LVR as entered by the user. user/you. *The comparison rate is based on a loan of $150,000 with a term of 25 years. Please note that the comparison rate only applies to the examples given. Rates correct as of February 26, 2022. See disclaimer.

Resimac cut rates at its homeowner Prime Alt Doc by paying principal and interest by 88 basis points to 2.99% pa (3.03% pa).

Resimac loans are only available through a broker and borrowers will need an LVR of 80%.

The risk fee on the loan has also been abolished.

Resimac’s chief distribution officer, Daniel Carde, said the move was aimed at providing independent borrowers with access to credit at a time when it could make a big difference.

“Many independent Australians will need more support this year to get back on their feet and return to normalcy after nearly 12 months of disruption,” Mr Carde said.

“Refinancing activity was particularly strong in 2020, but many independent borrowers were effectively shut out of the market due to the economic uncertainty caused by the pandemic.

“We are looking to change that in 2021 by lowering our interest rates and waiving almost all entry fees on our Prime Alt Doc line of loans.”


Photo by Jaye Haych on Unsplash

The entire market has not been taken into account in the selection of the products above. Instead, a reduced portion of the market was considered. Products from some vendors may not be available in all states. To be considered, the product and price must be clearly published on the product supplier’s website. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au and Performance Drive are part of the Savings Media group. In the interest of full disclosure, Savings Media Group is associated with Firstmac Group. To learn how Savings Media Group handles potential conflicts of interest, as well as how we are paid, please visit the website links at the bottom of this page.

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