Home Truths /While some home loan rates are going up – Athena goes down!

While some home loan rates are going up – Athena goes down!

2 min read | 18 Jan 2022

Rate Drop 1200x768 Blog
Rate Drop 1200x768 Blog

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.

  • This could save the typical home owner $54,318 over the life of the loan, or $181 a month based on the average customer rate of 2.70%¹ on a $450,000 loans.

  • 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.

Customers starting to roll off fixed rates – time to switch

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.”

Grab the opportunity to get ahead

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.

Athena launched nearly 3 years ago (Feb 2019) and has written over $3bn in loans, saving Australians $414 million³ so far.

You’ve got nothing to lose except your home loan!

Start saving a whole lotta time and money

¹RBA Housing lending rates, Nov 2021 Owner Occupied, all loans, all institutions. Calc based on a 25 year loan ²ABS Lending indicators Jan 2022 ³The interest savings estimate is an average of modelled savings of real customers who have refinanced to Athena since launch. The savings are modelled estimates only, and not a prediction. The actual future savings of these customers may be higher or lower. The estimated savings depend on assumptions that may change over the life of the loan, such as future interest rates and future borrower repayment behavior.
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