Homestar Finance Variable Rate Home Loan Review

Rates and Fees verified correct on December 11th, 2016

With a competitive rate and no ongoing fees, the Homestar Finance Variable Rate Home Loan has a lot to offer prospective borrowers.

The Homestar Finance Variable Rate Home Loan charges no ongoing fees and offers a range of flexible features so you can tailor the loan to meet your needs. It offers a competitive rate, the ability to make additional repayments and other features such as a redraw facility and offset account.

If you would prefer the security and stability of a fixed rate loan, Homestar Finance offers fixed loans for terms of between one and five years.

Interest Rate Max Insured LVR Max LVR
Investor
3.83% p.a.
Comparison Rate
3.88% p.a.
95% 80%
Owner Occupier
3.48% p.a.
Comparison Rate
3.53% p.a.
95% 80%
Product NameHomestar Finance Variable Rate Home Loan
Interest Rate TypeVariable
Comp Rate^ (p.a.)
Minimum Loan Amount$50,000
Maximum Loan Amount$1,000,000
Maximum Loan Term30 years
Maximum LVR80%
Maximum Insured LVR95%
Mortgage Offset AccountYes
Loan Redraw FacilityYes
Split Loan FacilityYes
Fixed Interest OptionYes
Suitable for InvestmentYes
Extra RepaymentYes
Available as equity loan/line of creditNo
Repayment TypePrincipal & Interest and Interest Only Options
Application Fee$495
Lender's Legal Fee$330
Valuation Fee$0
Ongoing Fees$0 p.a.
Settlement Fee$300
Discharge Fee$535

Pros

  • No legal fee, valuation fee and service fee.
  • Redraw Facility.
  • You can split your loan to keep personal and investment funds separate.

Cons

  • Establishment fee of $495.
  • $300 settlement fee.
  • A $535 discharge fee when closing the loan.

Things to consider about Homestar Finance Variable Rate Home Loan

The Homestar Finance Variable Rate Home Loan is available for first home buyers, those looking to construct a home or renovate, people who want to purchase property and customers looking to refinance an existing loan. Featuring a competitive variable rate, the loan features an LVR of 95% and is designed for both PAYG and self-employed borrowers.

Principal and interest repayments are offered as standard, but borrowers can opt to make interest-only repayments for up to five years and then have the option to renew for another five-year term. Principal and interest repayments can be made weekly, fortnightly or monthly while interest-only repayments are made on a monthly basis.

Features of the Homestar Finance Variable Rate Home Loan

  • Maximum loan amount. The maximum amount you can borrow under a Homestar Finance Variable Rate Home Loan is $1,000,000.
  • Maximum LVR. Customers can borrow up to 95% of the property they wish to purchase, but lenders’ mortgage insurance (LMI) is required if borrowing more than 80% LVR.
  • Offset account. A linked offset account is available to help you minimise the amount of interest you have to pay. This account comes with unlimited free internet and phone banking transactions, as well as free BPAY, ATM debit card and direct debit transactions.
  • Repayment flexibility. As mentioned above, borrowers making principal and interest repayments can choose to make them on a weekly, fortnightly or monthly schedule. Interest-only repayments are also available for a five-year period, with the option to extend for a further five years. In addition, borrowers can make additional repayments at no extra cost.
  • Redraw facility. A redraw facility is available when you want to access the extra funds you have paid towards your loan.

Fees

Fees you can avoid
  • Account keeping fee: $0
  • LMI: No LMI is required if you borrow less than 80% LVR.
Fees you can’t avoid
  • Application fee: $495. This covers the cost of establishing your loan and processing your application.
  • Valuation fee: This varies with each valuation and covers the lender’s third-party costs.
  • Discharge admin fee: $535 plus third-party costs. This fee covers the cost of preparing your mortgage discharge documents.
  • Manual redraw: $25. While electronic redraws are free, manual transactions incur a penalty.

How to apply for the Homestar Finance Variable Rate Home Loan

In order to be approved for the Homestar Finance Variable Rate Home Loan you will need to meet the following requirements:

  • You must be over the age of 18
  • You must be a permanent resident of Australia
  • You must have a clean credit history

This loan is available for both PAYG and self-employed borrowers who will need to provide evidence of their income and financial status. PAYG applicants will need:

  • To have been working for 12 months or more
  • To provide payslips and full financial and tax assessment notices to prove their income
  • To provide a PAYG payment summary

Self-employed applicants, companies and trusts will need:

  • To have been trading for two years or more
  • To provide bank statements to demonstrate their regular trading income
  • An ABN

Once your application has been submitted, Homestar Finance will assess your suitability and get in touch to discuss the next steps.

While the Homestar Finance Variable Rate Home Loan offers a range of attractive features for borrowers, you should always compare your options before deciding which loan is right for you. This will ensure that you end up with the best possible deal for your situation.


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Homestar Finance Variable Rate Home Loan Review Interest Rate History vs RBA Cash Rate Graph


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This page was last modified on 8 June 2016 at 14:18.

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Homestar Finance Variable Rate Home Loan

  • Interest Rate

    N/A

  • Comparison Rate

    N/A

  • App Fee / Annual Service Fee

    $495 / $0

  • Max LVR

    80%

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