Athena Launches Fixed Rate Mortgage Loans
Low-cost online mortgage lender Athena has launched fixed-rate home loans to complement its existing variable-rate offerings.
Launched this morning, the fixed home loan is available to both owner occupiers and investors looking to lock in a rate for a term of 1-3 years. The lowest rates currently available are as follows:
- 1 year: 2.09% per annum (2.02% per annum comparison rate *) for an owner-occupant making principal and interest repayments (
- 2 years: 2.29% per annum (2.04% per annum comparison rate *) for an owner-occupant making principal and interest payments (
- 3 years: 2.49% per annum (2.11% per annum comparison rate *) for an owner-occupant making principal and interest payments (
Like Athena’s 2021 Mozo Experts Choice Award winning ‘AcceleRATES’ variable loans, fixed home loan rates are tiered based on loan-to-value (LVR).
That means that as clients pay off more of their loan balance, their rate will automatically decrease. For example, a borrower who starts with 80% LVR on their loan will drop to a lower rate once it reaches
How Does Athena’s Fixed Rate Loan Compare?
So how does the new fixed-rate loan compare to other fixed-rate mortgages on the market? Unlike the variable rate loan from Athena, which has some of the lowest rates in Mozo’s database, the rates available with the fixed rate loan are not as accurate.
While the 1-year fixed rate for owner-occupier borrowers with 80% LVR is below the average in our database, the 2-year and 3-year rates are both higher than average. And all three rates are well above the lowest comparable fixed rates currently being tracked in our database.
|Athens fixed rate||Lowest (Mozo database) ^^||Average (Mozo database) ^^|
|1 year||2.19% per annum (2.08% per annum comparison rate *)||1.59% per annum (2.15% per annum comparison rate *)||2.28%|
|2 years||2.39% per annum (2.11% per annum comparison rate *)||1.59% per annum (2.10% per annum comparison rate *)||2.23%|
|3 years||2.59% per annum (2.18% per annum comparison rate *)||1.85% per annum (2.13% per annum comparison rate *)||2.35%|
That said, Athena’s fixed rate loan features comparatively low reversal rates, the rate that a mortgage holder will receive once their fixed term ends.
Reversal rates are generally much higher than the fixed rates offered, which means that borrowers can end up paying much more than what they paid during the fixed period if they do not rush to refinance another loan or renegotiate their rate with their current lender. .
However, Athena’s reversal rates are actually lower than its fixed rates today, which means (if rates continue to stay competitive) borrowers will go down to a low rate once their fixed period ends.
RELATED: Athena denounces ‘loyalty penalty rule’ costing Australian borrowers billions
For more information on the rates, fees, and features involved, check out our fixed home loan review. Or if you’re interested in seeing how it compares to other fixed offers, check out some of the great fixed rates for home loans in the table below, or head over to Mozo’s dedicated fixed rate comparison center to compare loans from a variety of lenders. .
^^ Interest rates are based on a homeowner making principal and interest payments on a $ 400,000 loan at 80% LVR. For more information on average mortgage rates, see our dedicated page on home loan statistics in Australia.
^ See information on Mozo Experts Choice Home Loan Awards Home Loan Awards
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