Athena launches fixed rate home loans
Low-cost online mortgage lender Athena has launched fixed rate home loans to complement its existing adjustable rate offerings.
The fixed home loan launched this morning is available to both owner-occupiers and investors who want to set an interest rate for a term of between 1-3 years. The currently lowest tariffs are as follows:
- 1 year: 2.09% pa (2.02% pa comparison rate *) for an owner-occupier who repays principal and interest (
- 2 years: 2.29% pa (2.04% pa comparison rate *) for an owner-occupier who pays capital and interest repayments (
- 3 years: 2.49% pa (2.11% pa comparison rate *) for an owner-occupier who pays capital and interest repayments (
As with the variable ‘AcceleRATES’ loans from Athena, which were awarded the Mozo Experts Choice Award 2021, the interest rates for the house loan are staggered depending on the loan-to-value ratio (LVR).
This means that the interest rate will automatically decrease as customers pay off more of their credit balance. For example, a borrower who starts with an LVR of 80% will be reduced to a lower interest rate as soon as they reach an LVR of
How does Athena’s fixed rate loan compare?
How does the new fixed rate loan compare to other fixed rate mortgages in the market? Unlike Athena’s floating rate loan, which has some of the lowest interest rates on the Mozo database, the rates available on the fixed rate loan are not quite as sharp.
While the 1-year fixed interest rate for owner-occupiers is below our database average with an LVR of 80%, the 2 and 3-year rates are both above average. And all three tariffs are well above the lowest comparable fixed tariffs currently recorded in our database.
|Athena fixed price||Lowest (Mozo Database) ^^||Average (Mozo database) ^^|
|1 year||2.19% pa (2.08% pa comparison rate *)||1.59% pa (2.15% pa comparison rate *)||2.28%|
|2 years||2.39% pa (2.11% pa comparison rate *)||1.59% pa (2.10% pa comparison rate *)||2.23%|
|3 years||2.59% pa (2.18% pa comparison rate *)||1.85% pa (2.13% pa comparison rate *)||2.35%|
However, the Athena Fixed Rate Loan has comparatively low payback interest – the rate a mortgage holder receives at the end of their fixed term.
The repayment rates are generally much higher than the fixed rates offered, meaning that borrowers can end up paying much more than they would during the stipulated term if they don’t quickly refinance another loan or renegotiate their interest rate with their current lender.
However, Athena revert rates are currently lower than their fixed rates, which means that borrowers (if rates remain competitive) will be raised to a low rate after their fixed term expires.
TIED TOGETHER: Athena launches the “loyalty penalty” that costs Australian borrowers billions
To learn more about its associated tariffs, fees, and features, read our fixed home loan review. Or if you’re interested in how it compares to other fixed rate offers, check out some of the great home loan fixed rates in the table below or visit the dedicated Mozo Fixed Rate Comparison hub to get loans on a range of loans compare lenders.
^^ Interest rates are based on an owner making principal and interest repayments on a $ 400,000 loan with an LVR of 80%. For more information on average mortgage rates, please visit our dedicated Australian home loan statistics page.
^ See Mozo Experts Choice Home Loan Awards information
Mozo provides general product information. We do not consider your personal goals, your financial situation or your needs and we do not recommend any particular product to you. You should make your own decision after reading the PDS or the offer documentation or after seeking independent advice.
While we pride ourselves on covering a wide range of products, we don’t cover every product on the market. If you decide to apply for a product through our website, you are dealing directly with the supplier of that product and not with Mozo.