Low cost online mortgage lender Athena has implemented fixed rate home loans to complement its existing variable rate offerings.
Launched this morning, the fixed rate home loan is available to both homeowners and investor borrowers looking to lock in a rate for a term of between 1 and 3 years. The lowest rates currently available at
- 1 year: 2.19% pa (comparison rate 2.08% pa *) for owner-occupiers repaying principal and interest
- 2 years: 2.39% pa (comparison rate of 2.11% pa *) for owner-occupiers repaying principal and interest
- 3 years: 2.59% pa (comparison rate of 2.18% pa *) for owner-occupiers repaying principal and interest
But like Athena’s “Accelerate” variable loans, which won the 2021 Mozo Experts Choice Award, the fixed-rate mortgage rates are scaled according to the loan-to-value ratio (LVR). This means that there are even lower fixed interest rates available to borrowers with LVRs below 70% and below 60%.
How does Athena’s fixed rate home loan compare?
So how does the new fixed rate home loan compare to other fixed rate mortgages in the market? Unlike Athena’s variable rate loan which has some of the lowest rates in the Mozo database, the rates available with the fixed rate loan are not as accurate.
While the 1-year fixed rate for homeowner borrowers with an LVR of 80% is below the average in our database, the 2 and 3-year rates are both above average. And all three rates are well above the lowest comparable fixed rates currently tracked in our database.
|Athena Fixed Rate||Lowest (Mozo database) ^^||Average (Mozo database) ^^|
|1 year||2.19% pa (comparison rate 2.08% pa *)||1.59% pa (comparison rate of 2.15% pa *)||2.28%|
|2 years||2.39% per year (comparison rate of 2.11% per year *)||1.59% pa (2.10% pa comparison rate *)||2.23%|
|3 years||2.59% pa (comparison rate of 2.18% pa *)||1.85% pa (comparison rate of 2.13% pa *)||2.35%|
That said, Athena’s Fixed Rate Home Loan has relatively low rates of return – the rate a mortgage holder will receive after their fixed term ends.
Repayment rates are usually much higher than the fixed rates offered, which means borrowers may end up paying a lot more than they were during the fixed period if they are not quick to refinance a loan. other loan or to renegotiate their rate with their current lender.
However, Athena’s return rates are actually lower than their current fixed rates, which means (if rates continue to be competitive) borrowers will be rolled over at a low rate after their fixed term ends.
RELATED: Athena denounces ‘loyalty penalty’ costing Australian borrowers billions
To learn more about Athena’s latest loan, check out our mini review below, or for more information on the rates, fees, and features involved, read our more comprehensive Fixed Rate Home Loan review.
Athena – Fixed rate mortgage
- 1-year fixed rate of 2.09% pa (comparison rate 2.02% pa *)
- Low return rate
- No upfront, ongoing or discharge fees
Athena has made a name for itself in recent years by offering some of the most competitive variable rate home loans on the market. 3 years. Fixed rates go down to 2.09% per annum (comparison rate of 2.02% per annum *) over a period of 1 year for owner-occupiers (
Interested in seeing how the fixed rate home loan compares to other fixed offers? Then head to the dedicated Mozo Fixed Rate Comparison Center where you can compare loans from a range of different lenders.
^^ Interest rates are based on an owner-occupier paying principal and interest on a loan of $ 400,000 with an LVR of 80%. For more information on average mortgage rates, see our dedicated Australian home loan statistics page.
^ See information on the Mozo Experts Choice Home Loan Awards
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