Horizon Bank First Home Buyer Loan 5.24% p.a. (CR 5.24%) Owner Occupier, Variable, Principal & Interest, LVR 70% or Less

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Horizon Bank First Home Buyer Loan 5.24% p.a. (CR 5.24%) Owner Occupier, Variable, Principal & Interest, LVR 70% or Less
Go to Deal
jiayijames on 31/07/2025 - 05:47 horizonbank.com.au (160 clicks)
Last edited 31/07/2025 - 10:33 by 1 other user
  • A personal lender that will guide you through your home ownership
  • We'll help you discover how much you can afford to borrow
  • We specialise on delivering quick answers on loan applications
  • Flexible repayment options
  • Extra repayments allowed without penalty

  • 100% Mortgage Offset account option

  • A lower rate is available if you have a Loan Valuation Ratio of 70% or less.

  • Basically, it means you only have to borrow up to 70% of the value of the property.
  • Weekly repayments will help you own your home quicker
  • Extra repayments will help you own your home quicker. You can access extra repayments (redraw) anytime.
  • Consider having a Mortgage Offset account. Keep excess savings in this account.
  • The funds you have in a Mortgage Offset account reduces the amount of interest on your loan.

  • This means it's working towards you owning your home sooner.

  • Horizon is run only to benefit our customers.

Financial First Home Buyer Home Loan Loan

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Comments

  • Slo20 on 31/07/2025 - 05:52
    +1

    You may want to fix up the description. When you copy and paste it’s lost half the content.

  • Lucille Bluth on 31/07/2025 - 06:08
    +13

    The rate is highly misleading. It's closer to 5.74% CR over 25 years.

    Buried in the hard to find T&C section, the 5.24% has a 0.60% discount applied for two years. This means in the third year it becomes 5.84% (23 years for remainder of loan if going for 25 year loan duration), they have used the promo rate for the full 25 years to calculate the CR - 5.24% over 25 years on a $150K loan. Which is not reality.

    Terms and conditions, fees & charges apply and are available on application. Approval conditions apply. The loan is secured and the rate is variable. Additional fees and charges will apply. The establishment fee is for one property, one mortgage preparation and one property valuation only. SPECIAL DISCOUNT RATE - The rate includes a 0.60%p.a. honeymoon discount for 2 years.

    https://horizonbank.com.au/help/rates-fees/

    Yes rates will change over the course of the loan, but IMO they are being dodgy for not disclosing that this is a honeymoon rate on the main page. And there are costs in establishing the loan and moving away that need to be considered if you are planning only to be with them for two years.

    • cooni on 31/07/2025 - 07:07
      +2

      I don't doubt what you're saying but I thought the comparison rate is a standardised legal requirement

      • Lucille Bluth on 31/07/2025 - 07:31

        That's what I thought as well, until I dug into this offer further and discovered it was a 0.6% discount for the first two years in the rates and fee table.

        I also discovered that comparison rates do not need to take into consideration savings like fee waivers or discounts (the latter being this honeymoon rate), which makes CR meaningless if you can use this as a loophole.

        Basically, it can't be a pure 5.24% CR if after the third year the discount is removed for the 23 remaining years and it reverts to ~5.74%. But they can get away with it even more so because it's a variable loan and as such can vary the interest as they please.

    • sghetti on 31/07/2025 - 07:40
      +2

      Sketchy as, that was incredibly difficult to find. Decent rate to start and you could refinance to move on elsewhere before the 2 year mark.

      But I’m also skeptical of their fees for establishing the loan and discharging, their fees table is a little difficult to read too.

  • mememe123 on 31/07/2025 - 08:19

    "Horizon is run only to benefit our customers." Hard to believe it's that charitable.

    • Ryk on 31/07/2025 - 10:51
      +1

      It's a mutual, owned by its customers. Not listed, no shareholders, other than the customers.

  • Waygood_deals on 31/07/2025 - 09:26

    LVR of 70% for first home buyer? Limited customer base!

  • clubhonda on 31/07/2025 - 10:49

    Indeed, this is more of an attention grabber/advertising than a real deal as they know that most FHBs will not have a 30% deposit. I'd hazard a guess that less than 5% of FHBs in the market will satisfy their requirement which they probably know. It just looks like a great offer which they likely wouldn't write any or in very limited form, because once you factor in costs, the bank is likely losing money on this. Wouldn't surprise me if applications that actually complies with the LVR will also end up being declined.

  • freekay on 31/07/2025 - 11:20
    +3

    Police Credit Union currently offering 4.99 variable @ 80% LVR. No gotchas, no honeymoon periods. This, in comparison, is rubbish.

    • Tommyk1234 on 31/07/2025 - 11:52

      Is this just for police officers or for anyone? Definitely a great rate

      • freekay on 31/07/2025 - 13:16

        Open to general public

    • holla4adollar on 31/07/2025 - 15:45

      If only they offered an offset account with that rate

    • brick007123 on 31/07/2025 - 15:49

      Does Police Credit Union's 4.99 loan has 100% offset account?

    • Arthur Dent on 31/07/2025 - 20:08
      +1

      Amazing rate but there is a slight gotcha:

      *Special Offer rate may not move in line with RBA cash rate changes.

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