Athena’s low-cost online mortgage lender has introduced fixed rate home loans to complement existing floating rate offerings.
The permanent home loan launched this morning is available to both tenant landlords and investor borrowers looking to lock-in for 1-3 years. The lowest rates currently available are as follows:
1 year: 2.09% pa (comparative ratio 2.02% pa *) for the owner paying principal and interest (
2 years: 2.29% per annum (comparative ratio 2.04% per annum *) for the owner making principal and interest repayments (
3 years: 2.49% per annum (comparative ratio 2.11% per annum *) for the owner paying principal and interest (
Like Athena’s 2021 Mozo Experts Choice Award loans with the variable ‘AcceleRATES’, the interest rate on a fixed rate loan varies according to the loan-to-value ratio (LVR).
This means that when customers pay off more of their loan balance, their rate will automatically drop. For example, a borrower who starts with 80% LVR of his loan will be lowered to a lower rate when it reaches
How does Athena’s fixed rate loan compare?
So how does the new fixed rate loan compare to other fixed rate mortgage loans on the market? Unlike Athena’s floating rate loan, which offers some of the lowest rates on Mozo’s database, the rates available for a fixed rate loan aren’t that high.
While the annual fixed rate for borrowers who own tenants with 80% LVR is below the average of our database, the 2- and 3-year rates are above the average. And all three rates are well above the lowest comparable fixed rates currently tracked in our database.
Athens fixed rate
Lowest (Mozo base) ^^
Average (Mozo database) ^^
2.19% per annum (comparative factor 2.08% per annum *)
1.59% annually (comparative ratio 2.15% annually *)
2.39% annually (comparative ratio 2.11% annually *)
1.59% annually (comparative ratio 2.10% annually *)
2.59% annually (comparative ratio 2.18% annually *)
1.85% annually (comparative ratio 2.13% annually *)
With that said, the Athens Fixed Rate Loan has relatively low rates of return – a rate that the mortgage holder will receive at the end of the agreed term.
The interest rate for your repayment is typically much higher than the fixed rate offered, meaning borrowers can end up paying significantly more than a fixed period if they are unwilling to quickly refinance another loan or renegotiate rates with their current lender.
However, Athena’s rates of return are actually lower than their current fixed rates, meaning (if rates continue to remain competitive) borrowers will be moved to a low rate at the end of their fixed term.
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To find out more about the rates, fees, and related features, see our Home Loans overview. Or, if you want to see how this compares to other fixed rates, check out some of the great fixed rate home loan rates in the table below or go to Mozo’s dedicated Fixed Rate Comparison Center to compare loans from different lenders.
^^ The interest rate is based on the assumption that the owner is repaying principal and interest on a $ 400,000 loan with 80% LVR. For more information on average mortgage rates, check out our dedicated Australian home loan statistics page.
* WARNING: This comparison factor is only valid for the example or examples shown. Different amounts and terms will result in different benchmarks. Costs such as redemption fees or early repayment fees, and savings such as fee waivers are not included in the comparative rate but may affect the cost of the loan. The comparative rate displayed is for a secured loan with $ 150,000 monthly principal and interest payments over 25 years.
** The initial monthly payment data is an estimate only, based on the advertised rate, loan amount and the period entered. The rates, fees and commissions, and thus the total cost of the loan, may vary depending on the loan amount, loan term, and credit history. Actual repayments will depend on individual circumstances and changes in interest rates.
^ See information on the Mozo Experts Choice Home Loan Awards
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