2 min read | 18 Jan 2022
Tuesday 18th Jan: Athena home loans just dropped their variable rates. Now starting from 1.89% - one of the lowest, fee-free variable home loan rates on the market.
Athena cuts variable home loan rates to as low as 1.89% p.a. owner occupied and 2.19% p.a. for investor P&I.
Athena’s unique Automatic Rate Match means both new and existing customers enjoy the rate drop immediately.
It’s the 9th time Athena has dropped their variable rate in 3 years.
On average, Athena customers are 3 years ahead on their home loans.
Athena home loans announced today that they are slashing their variable rates for all new and existing customers, with rate from 1.89% p.a. for P&I owner occupied loans and 2.19%p.a for P&I investor loans.
The rate cut bucks the trend of many lenders increasing their rates, especially with fixed. Over the month to mid-December last year, 52 lenders hiked their two-year fixed rate products and 64 hiked for three-year loans.
“There is a lot of speculation that the cash rate will go up later this year, so we have the opportunity to allow our customers to save more and get ahead on their loan before that happens. That’s what our voluntary rate drop is all about.” says Nathan Walsh, CEO and Co – Founder.
Home loan refinancing to other providers increased by 28% in 2021 vs 2020². A trend Michael Starkey (COO & Co Founder) expects to continue as customers who had secured a low fixed rate a year or two ago, starts to roll off.
"A lot of customers will be rolling off their 1 and 2 year fixed rates they secured during the first lock down and getting stung with a much higher variable rates, some of which can be over 3%. It’s a great chance to switch to a provider who is on their side - and gives them rates starting with a 1.”
Australians have a real opportunity to get ahead with these low variable rates and can make much bigger savings by repaying their home loan repayments as if their higher rate applies.
For example, customers switching from the average Australian mortgage of $450,000 over 25 years at a rate of 2.70% (owner occupied, P&I loan) to Athena’s lowest rate of 1.89%, will save…
$181 a month
$54,318 over the life of the loan
Or $67,647 if they keep repayments at the higher amount- knocking an extra off two and a half years off the mortgage.