Home Truths /Athena announces Australia’s lowest fee-free variable home loan rate

Athena announces Australia’s lowest fee-free variable home loan rate

3 min read | 10 May 2021

1.99 blog image
1.99 blog image

Home loan disruptor Athena drops rates again to save customers thousands

Monday 10th May 2021

Athena Home Loans has announced today that all new and existing customers will receive yet another interest rate drop, with rates from 1.99% p.a. for P&I owner occupied loans. This is the lowest, fee-free variable home loan rate in the country.

Despite last week’s RBA announcement that they are keeping interest rates the same, Athena has taken the lead again to cut their own rates. Since launching in 2019, today’s rate drop will be the seventh time Athena has dropped their rate. Five of those were passing on the RBA rate drop immediately and in full, and the other two times were outside of RBA’s drops. No other lender has done this.

“We’re committed to giving our customers a great rate that stays great, and that includes our existing customers who instantly enjoy every rate we drop. We are Australia’s only loyalty tax free lender,” says Nathan Walsh, Co-Founder & CEO. “Now is the perfect moment to pass on seriously compelling fee-free savings to customers, helping them continue to pay down their home loan faster.

“Athena is out to show Australians that there’s a home lender on their side. With housing prices skyrocketing and Job Keeper finishing, many homeowners – who thought they scored a low rate – are now realising they have been locked in and paying for it with rate hikes and fees.

“Now is the perfect moment to pass on seriously compelling fee-free savings to customers, helping them continue to pay down their home loan faster,” says Nathan.

Aussie borrowers are seeking a better deal

Home loan refinance volumes grew by 25% in 2020, a trend that looks to continue in 2021 with a further 10% increase so far this year. However, there are still a huge number of customers who are sitting on legacy back book rates and are getting stung unnecessarily by fees and built-in rate hikes. Nathans says, “Too many Aussies are being gouged on rates & fees, paying thousands in fees on a basic home loan and as much as $11,000 on package home loans*. 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.”

Staggering savings

A borrower on typical rates can unlock staggering savings by switching to Athena. RBA data states that the average interest rate for existing customers on an owner-occupier, principal and interest loan sits at 2.93%. Based on an average loan size of $450,000 & 25-year remaining term, if these customers refinanced to Athena’s lowest rate of 1.99% their monthly repayments would drop by $168 a month and their interest bill would fall by $50,508. If they kept their repayments the same, they would be debt free two and half years earlier and save $65,353 over the life of the loan.

Athena Co-Founder & COO Michael Starkey says, “We love to innovate and find new ways Australians can pay off their home loan faster. A fee free, great rate is another major milestone for Athena and our customers in helping them pay off their home loan faster.

“Athena is committed to lead the digital expansion of home loans in Australia. Consumers win when such compelling rates are available via a fast & simple digital platform, backed by great service from an Australia based team of home loan experts. We’re here to change home loans for good!” said Michael.

Since launching in February 2019, Athena has written over $2 billion in loans and saved Australian’s $290 million with the average customer saving $56,000 over the life of their loan.

For more information or an interview, please contact: Anna MacIntosh / 0411 527 756

Editor’s note:

The Athena fee free variable home loan rate is also accompanied by a 2.39% rate for investors.

Other rate dropping products Athena has launched since 2019 include:

  • AcceleRATES – an Aussie first where the more customers pay off their loan the more Athena automatically lower their rate. 

  • Automatic Rate Match which means Athena will never give new customers better rates than existing customers on a like for like loan.

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

Start saving a whole lotta time and money

*Using a combination of the highest fees charged by category for basic home loans across the top 12 lenders as measured by APRA’s Monthly Authorised Deposit-taking Institution Statistics publication (January 2021). Information is sourced directly from lender websites.
Athena acknowledges the traditional owners of the land on which we gather the Gadigal people of the Eora nation. We acknowledge that sovereignty was never ceded and respect their continued and continuing connection to this place.