• expired

Homestar Star Gold Home Loan 1.79% Owner Occupier Variable 60% LVR

740

HomeStar are offering a fully featured variable owner occupier home loan for just 1.79% - I think this is the lowest you’ll find at the moment (correct me if I’m wrong). You need to have an LVR of 60% though. DYOR :)

Loan Features:

Visa Debit

Offset Account

No Monthly or Ongoing Account Fees

Weekly, Fortnightly or Monthly Repayments

Free Online Redraws

Super Low Rate

Unrestricted Extra Repayments

Multiple Loan Splits Possible

Pay Anyone & BPAY® Available

Schedule Recurring Payments or Transfers

This is a Limited Time Special, only available on applications received by 31.12.20 and settlement by 31.03.21.

Related Stores

Homestar Finance
Homestar Finance

closed Comments

  •  

    Can't find details on application and discharge charges. Any ideas please?

    • +4 votes

      Towards the bottom, above their fine print: https://homestarfinance.com.au/owner-occupied-products

      ~$1,000+ application charges
      $535 discharge fee

      •  

        Thank you

      • +4 votes

        Ouch - the rate's good, but those fees are a bit nasty - especially compared to Athena.

      • +1 vote

        this important detail needs to be added to the original post. For most customers you're not really saving from the low rate. They are just guaranteeing themselves the money with that $1000 application charge. Clever recession proof move. Also, when their rates go up they reap the fees from the interest and pat/stab you in the back out the door with that discharge fee when you decide to finally refinance elsewhere. I can't be bothered spelling out the math but if you have money to go into offset to reduce your interest charge better to go with ING or Macquarie. Best rates for mortgages with offset accounts at this moment.

    •  

      much expensive

      •  

        Worth it for ongoing cheap rates that are usually lowest in the market

        •  

          Yep, very happy with our Homestar Loan and service.

  • +5 votes

    It's HomeStar, not LoanStar. Have been with them for close to 3 years. Have received all rate cuts in full except for the last one which I don't think anyone gave back full.

    Highly recommended

    •  

      Have there been any out of cycle rate rises applied after settlement?

      •  

        None for me.

    • +1 vote

      Thanks have fixed the typo.

    •  

      Hey mate, can they do multiple offset accounts?

      • +1 vote

        you will need to split your loans and get offset against each and yes, it can be done. I have it.

        •  

          do they charge extra for multiple offset accounts?

  • +1 vote

    Which bank is their offset account with?

    •  

      I think the backend is either ING or ANZ but you login through their online portal.

      • -1 vote

        mostly ANZ

    • +1 vote

      I rang up and confirmed that it is Westpac

  •  

    LVR is around 63%, might still ring them up.

  •  

    it says 60% or less.

  •  

    Dumb question - how to calculate LVR on existing loan? Is it amount owing (after subtracting extra repayments) divided by value of the home?

    • +2 votes

      yeah that's right just amount owing / value of home as determined by the bank/lender

      •  

        So if I owe 150k from the bank, but the bank value my home is 300k, I got LVR 50%. Is this correct? Sorry just try to understand the math.

        • +1 vote

          yes

  •  

    funds in offset can count towards lowering LVR?
    For instance:
    amount owing: 700k
    value of home: 1M (LVR = 70%)
    funds in offset: 100k (will this reduce LVR to 60%)?

    • +8 votes

      Been a long time since I have been in lending - but I'm going to say 'no'.
      If its in the offset it can be removed at any time.
      I think they will want a hard limit on their exposure.

      • +3 votes

        Broker here - Would need to reduce loan to $600k and basically forfeit the offset funds to pay down the loan.

  • +1 vote

    Im done with these low variable rate promotions. Everytime i refinance, within 3 months i get a letter saying they gonna raise rates. Low key bait and switch tactics.

    •  

      A letter from whom?

      •  

        from the "ultra low variable" rate lender i just refinanced with

        • +4 votes

          Read comments above. Been with them for close to 3 years. Not a single rate rise.

        • +3 votes

          Going to need details, for science.

    •  

      yeah, many banks used to do that but anyone doing that in the last years or so should be avoided given the current state of interest rate.

  • +6 votes

    RBA expected to announce another rate cut today, so you may want to hold off to see who offers what after this announcement.

    • +1 vote

      i'd question if banks would pass it in full. Margin's are getting tighter https://www.rba.gov.au/chart-pack/banking-indicators.html#3

      •  

        If Im reading the charts correctly within the Australian Bank Profits link, the blue bar graphs are showing net profits after tax are actually increasing (good for the banks) and bad/doubtful debts charged are reducing (red graph).

        The Australian Bank Profitability link shows that there has been a downward trend on shareholders profitability, but they're still over 10%. Doesn't look too shabby to me. If anything, banks generally tend to adjust their stakeholder forecast on profitability as they have recently done, meaning they may make a few million dollars less than expected due to the current economic climate, but that would be expected anyway. I dont think banks are anywhere near tanking, or even levelling out to minimal profit margins.

    • +1 vote

      Yes, but I don't know that cutting the rate from 0.25% to 0.1% will make much of a difference to consumer rates. I also don't think it will do much for the economy because if you couldn't afford the loan at these rates then an extra sixth of a percent isn't going to help - and you'd have to be silly to take out a loan that you could only just service when interest rates are at the lowest they have ever been.

      •  

        but I don't know that cutting the rate from 0.25% to 0.1% will make much of a difference to consumer rates

        Hence why I said you may want to wait and see who offers what.

        I also don't think it will do much for the economy because if you couldn't afford the loan at these rates then an extra sixth of a percent isn't going to help

        Sure, but I didnt mention anything about the economy. Time will tell if it makes a difference, and a rate cut isn't the one silver bullet to fix the economy. Local and international tourism needs to open up from border closures, along with many other things.

        you'd have to be silly to take out a loan that you could only just service when interest rates are at the lowest they have ever been.

        Yes, but if this can help you save another $50 a month, you can put that towards reducing your home loan period, or spending it to help the economy.

  • +1 vote

    Anyone know if there is a minimum loan amount? Around 120k with ing and they are charging us 4.07% which seems way over the top.

    • +8 votes

      Anyone with an interest rate beginning with a '4' is definitely paying too much at the moment.

      • +12 votes

        You can include anyone with an interest rate beginning with a 3 too

      •  

        I guess i'll call ing and see what they can offer.

        4.07 just seems like their standard under 150k https://www.ing.com.au/rates-and-fees/home-loan-rates.html

        Over 150k it would be 2 point something. edit: we didnt borrow under 150k originally so i would have thought we should be getting 2.x

        •  

          I am guessing your LVR is close to 60% or below (could be completely wrong though and this may not apply). In which case get this loan at 1.79%. Way cheaper

          •  

            @rdhupar: 120k on 800+ so LVR shouldn't be an issue at all.

        • +2 votes

          I rang ING (and threatened to leave) and they (reluctantly) reduced the rate from 3.13% to 2.67%

          •  

            @tg: Better than mine. They dropped mine about 3 months ago to 2.74. looking at these new low rates I'm not happy Jan.

    •  

      Looks like their fixed loans have the smallest minimum at 150k (1.98% 1yr, 2.06% 3yr), others are all 250k minimums. Assuming their offsets are 100% offset and your house value is high enough you could consider taking out a 250k loan and putting the 130k excess straight into the offset, so you get the good rate/good options etc but only pay interest etc on 120k.
      I did similar previously (suggested by the loan officer too!) when my bank had a cheaper rate with a minimum new borrowing amount, refinanced to that loan and chucked the excess in the offset and made myself forget it exists (don't do this if you're likely to go "well, a new car would be nice…" etc!).

      •  

        Not a bad idea. Full sized block in the melbourne burbs. You don't get anything under 800k these days, sales in the street 800k-1.25 the last few years so 250k wouldn't be a problem.

  • +1 vote

    That's a good rate, will be interesting to see if that's preempting the rate cut today or will it go down further..Im pretty happy with ubank but at 2.49% so might be worth switching. With rates so low it's hard to justify the cost of transferring though, to earn it back will take awhile.

    •  

      read in the news, apparently its pre-empting

    •  

      I'm in the same boat with Ubank. If not for the application fee, valuation fee, documents fee, discharge fees and so on, I would have applied already.

      •  

        I think they do 2.39% for LVR of 80% with similar features. They have a cashback which should cover these costs.

  •  

    Crap I fixed at 2.22% a few months ago, should have waited. Luckily I'm only paying less than $200 in interest monthly so not much to save for me.

  • +1 vote

    wow just went to st george for 2.59

    • +1 vote

      With 4K cash back ? If so wait for 4K then refinance. You owe them nothing.

      •  

        Yep did go through mortgage broker so will feel bad for clawback. Suppose can refinance again through mortgage broker?

        • +1 vote

          Ahh mortgage broker makes it a bit more complicated, talk to him and see what you can do.

  • +1 vote

    minimum loan 250k size, dang.

  •  

    Is it possible to get a loan if you are only working for 3 months full time.

    I spoke to a broker and i was told most banks requires you to have a job for 6 months full time.

    But was working over for several yrs back and able to get save enough deposit.

    •  

      If you are past probation period it shouldn't be an issue.

    •  

      Broker here, 3 months can work depending on your circumstances.

      Pm if you want to discuss your specific scenario

  •  

    Do they have a marginally higher rate for higher LVR? We could probably squeeze in at 70%.

    Currently paying 3.22%, getting massively ripped off and really need to get around to switching asap :(

    •  

      2.39% at 80% LVR I think

  •  

    Weekly, Fortnightly or Monthly Repayments

    Interested to know if the fortnightly repayments are 12 * 2 = 24 or 52/2 = 26?

    EDIT: Found the answer on this page by clicking on the Assumptions button: https://homestarfinance.com.au/fortnightly-loan-repayment-ca...

    It is assumed that a year consists of 26 fortnights or 52 weeks, which is counted as 364 days rather than 365 or 366 days.

  •  

    can this one be used when u are building a new house?

    •  

      Doesn’t say it can’t be so could be worth giving them a call? I think lenders generally rate construction loans as higher risk so they may charge a higher rate, even if you do have 60% LVR.

  •  

    RBA rate officially 0.10%

  •  

    Note #1: The DTI (debt to income ration) is 6
    If you earn 100k, the maximum they will lend is 600k.

    Note #2: Maximum loan size is 850k
    Above that, they will access you differently.

    Note #3: 80% LVR will be of higher rate
    1.79% is for 60% LVR
    2.24% is for 80% LVR

    Note #4: Second homeloan will have 0.05% discount
    For example, after taking 1.79% PPOR loan at 1.79%.
    IP loan will be 2.39% (LVR 60%) or 2.59% (LVR 80%)

    • +1 vote

      they will access you differently.

      I hope they buy me dinner before they access me

  • +2 votes

    People going with these non-bank lenders should take into account the hidden charges ($1,000 + $500) in this case, as well as the missing cash back provided by the banks ($4,000 is the norm recently).

    For example, compared to the recent deals from St George and the likes, the difference is approx $5,000 ($4,000 cash back + $1,000 cheaper fees). If your loan is $400k for 2 years then the discount of $5,000 is like -0.6%. In other words, the effective rates by the bank is approx 2.24 - 0.6 = 1.64%, cheaper than 1.79% in this deal. You also get to deal with a real bank with presumably better services.

    •  

      Yeah so grab the 4K and then refinance got it !

      •  

        Yep, rinse and repeat for a tidy profit

    •  

      StGeorge don't seem to have a 2.24% rate. Looking at a 400k loan the options I see are basic at 2.49% - take the 0.6 off and it's 1.89 so higher than this, and that doesn't include an offset, if you want an offset that's 3.14% and has a $395 annual package fee.

  •  

    Do these guy do block and build loans/construction loans?

  •  

    do they do investor loans? what if you get declined do you still have to pay for the application fees?

  • +2 votes

    I had a chat with them online (chat).

    I asked how much the interest would be if I lock it in for 3-5 years.

    Response: Please give me your name and phone number and we will give you a call.

    I know that they are chasing business but if they cannot answer such a simple question without asking for my number, then they seem to be desperate for new business.

    •  

      They have the 3 year fixed rates shown online - https://homestarfinance.com.au/star-classic-fixed-oo

      •  

        Thanks. I appreciate it.

    •  

      I also just tried to online chat. They did take names, loan amounts etc. and wanted to call me, and totally ignored my original message saying I was at work and just wanted to online chat.

      I just wanted a breakdown of the total fees upfront, annual etc. similar to how ubank tells you outright that everything is 0 here and there. Sitll couldn't give me an answer. When I finally said i'd call next week then as i was at work they cut me off and ended the conversation with the usual 'pleasantries'.

      Abit worried how transparent they are therefore.

  • +3 votes

    Gave up on applying through them. It took forever and they always kept asking for new documentation and asking new questions. I think I gave up after 2 months of applying. They are psychos IMO, they called my work and asked them how safe was my job. Then called me and asked the same question. When they saw in the records there was a substantial sum transferred into my account and I told them that was from the joint account with my ex partner, they asked for documents about anything I have shared with my ex-partner. It is just not worth it, they make you feel so humiliated. I told them not interested, bye.

  •  

    Do they need decent income support docs?

  • +1 vote

    Would be very interested to know other existing homestar customer rates?? I have been with them for 18 months, I started with an industry leading rate and although I have been getting rate cuts in full along the way (except the last one), at 2.44% I am well above the current advertised rate of 1.79% ( yes my loan is Owner Occupier Variable 60% LVR).

    I contacted them to ask how I can get the current rate, they have told me that I would need to pay a fee of $961. Bit of a cash grab, but actually looks like it may be worth it as I will save that in 6months given all things equal…

    Are they cutting the margin so close that they need the "set-up fee" to generate a reasonable income?

    For what it is worth, I would recommend them - have found service to be great so far considering the budget offering that it is.

    •  

      Hi Grover77, did you end up going ahead with the rate switch?

  •  

    I just tried contacting online chat for a full disclosure of annual and upfront fees to refinance. Has anyone found they are quite hard to get info out of.Want my number, even though I mentioned I was at work, wanted to online chat only etc. Then abruptly ended conversation as i was continuing on with some other questions.. abit of a bad impression and no feedback allowed for the online chat for me to give them my two cents haha.

    That said - does anyone have any advice who has looked at home loan refinances recently: we are after an offset account. We should be able to drum up 80% LVR…. currently Bankwest has us on an appalling pre RBA melb cup rate cut of 3.03% which doesn't cut it for us. We aren't on 80% lvr with them but even if we pay down to 80 the best was 2.83% which is still not good enough.

    The problem we have is bankwest continue to base 80% LVR off our original assessed loan, a "refinance" desktop val they reckon we're now back up to 100% LVR? I don't believe properly prices have dropped a good 20%…. but if we try to refinance elsewhere will we need to pay the "valuation" fee regardless of being successful? Is there any way to get a ballpark valuation so that if we are truly down in property value these few years that we arne't throwing money on a pointless valuation fee?

    The homestar star classic looks good as it comes with an offset. Athena doesnt.. but from posts here it seems homestar has a few sneaky fees? Cashback of $1k but a few upfront fees? Ubank meanwhile advertised 0 fees etc all over place. But we really like an offset as we contribute extra per month - redraw seems abit of a worry given it isn't 'at call' e..g the recent saga with that bank who didn't allow the redraws.

    Also - does anyone know Homestar who their offset is with? Are you covered as an ADI under the $250k government financial guarantee scheme if they use another bank to offer the offset? Anyone know for sure? I find it odd they mention it nowhere on their website vs athena and ubank which are full dislcosure of all the fine print.

    •  

      I called APRA yesterday asking the question and was told; as they are not a listed subsidiary of any covered bank, deposits to Homestar are not covered under the government financial claims scheme.

      •  

        even though their bank account may be with a major bank for example???

        •  

          I read above the offset has an ANZ BSB number. I was told as they are not listed as an ANZ subsidiary it is not covered

          •  

            @brent0np: if that's how it works then I may be inclined to skip these sort of lenders. The offset is great and i understand the financial guarantee scheme isn't "active" yet, just the power exists for govt to step in. More likely i presume for the govt to step in if it were say ANZ, st george etc than homestar finance (not that it's covered anyway - but you get my point).

            •  

              @SaberX: Agreed, it is an issue I don't think I can get past.

              •  

                @brent0np: Take a look at Tic Toc if the lender being an authorised ADI is a deal breaker for you. They are one as they are underwritten by Adelaide / Bendigo Bank.

                •  

                  @ozzieozzieozzie: Thanks. Yeap I doubt we'lll need it but you never know… particularly as we'd like to use the offset function for a decent chunk of savings over the years, so the 'risk' needs to be minimised (guess you never know what may happen these days).

  •  

    o Question: Any current HomeStar customers had a genuine attempt to negotiate their rates?

    o This is the only gotchya I can come up with for such an amazing deal… the rate is so much lower than even the best rates on the market.. that even if they don't pass on any more cuts.. you would still be in front… the $1500 (approx) spent refinancing.. is about what you would save in the first year with reduced interest repayments (you could actually save an awful lot more depending on your current rate). The question is.. in 1-2yrs, what sort of 'other' offers are out there?

    o I can share my experience with State Custodians (who used to be the cheapest online provider), I've had a few loans over a decade, and every few years I wake up and realise how badly my rate has fallen behind the 'new customer' rate.. this seems to be completely normal lender behaviour.. and like everything else in life.. if you stay on top of it.. contact them.. and worst case threaten them.. you will get the new customer deal matched.. if you do nothing.. well they will keep leeching from you, a 'laziness tax' if you will.. this is no different to Foxtel, Electricity Providers etc.. it seems to be the new way of the world.

    o But anyway.. my point is that State Custodians do negotiate, and that process has no fees.. however HomeStar may not.. they may say that the 'Star Gold' was a one-off promotion, we no longer offer it.. if you want our new offer, you need to refinance onto a 'separate offer', perhaps they can legally get away with it.. that said.. you shouldn't need to be swapping off a deal that good.. unless somehow they intend to make new offers considerably better.. perhaps we would need a crystal ball to understand what the loan market looks like in 2-3yrs time?

    o Note: The only HomeStar example given above was Grover who has fallen roughly 0.65% behind in 18months.. but that was to be fair in a market where rates kept falling… and I dont think HomeStar could go much lower than 1.79% unless official rates go to Zero or lower.

  •  

    Anyone know how they are with releasing equity? would want roughly 100K on top of the refinance amount, this would still keep me under 60% LVR.

  •  

    Is this rate available for refinance?