Important:

This article is for information purposes only.

Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Athena slashes variable mortgage rates

mortgage rates



This rate cut marks the ninth time Athena has dropped its variable rate in three years

Athena announced it is slashing variable rates for all new and existing customers, which is noteworthy because many lenders’ rate cuts only apply to new loans – existing customers usually have to ask for a better deal.

Athena’s Principal & Interest (P&I) Owner Occupied Loans for less than 60% loan-to-value ratio (LVR) now sits at a rate of 1.89% per annum, while the rate for P&I Investor Loans less than 60% loan-to-value ratio is now 2.19% per annum.

The comparison rates are the same as the advertised rates.

This rate cut marks the ninth time Athena has dropped its variable rate in three years.

Over the month to mid-December last year, 52 lenders hiked their two-year fixed rate products and 64 hiked their fixed rate products for three-year loans.

In the span of 12 months, the major banks increased their four-year fixed rates by between 126 and 135 basis points.

Athena CEO and Co-Founder Nathan Walsh said there is a lot of speculation that the cash rate will go up later this year.

We have the opportunity to allow our customers to save more and get ahead on their loan before that happens, Mr Walsh said.

That’s what our voluntary rate drop is all about, he said.

According to Athena, these rate cuts could save the ‘typical’ homeowner $54,318 over the life of the loan, or $181 a month based on the average advertised rate of 2.70% on a $450,000 mortgage.

RBA data suggests the average owner occupier variable advertised rate is 2.30% p.a.

Athena notes home loan refinancing to other lenders increased by 28% in 2021 vs. 2020.

Athena Chief Operations Officer and Co-Founder Michael Starkey said he expects this trend to continue.

Important:

This article is for information purposes only.

Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.



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