Star Choice – No LMI

Canstar Partner Offer: Take advantage of the home loan features you really want – with no LMI, no ongoing fees and a Rate Revert loyalty feature just for you.

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Owner Occupied

    Home Loan Enquiry

    Please complete the form below and our Loan Team will be in touch soon.




    Rate Revert

    When you stay with Homestar for longer you can now reap the rewards! A revert rate is the interest rate that your home loan returns (or reverts) to after the introductory rate period ends. With most home loan providers, the revert rate is typically higher than the standard variable rate you could get from the same lender – but in this case we’ve made it lower just for you!

    Your loyalty will be rewarded with a rate drop:
    85% LVR lends will be rewarded with a 0.50% rate reduction after 36 months
    90% LVR lends will be rewarded with a 1.00% rate reduction after 60 months

    Note: This 0.50% or 1.00% discount will be calculated on your current standard variable rate at the time the discount is applied. Variable rates are subject to change without notice, and there is no standard variable rate that applies to all Homestar home loans. Homestar customers can confirm their current rate(s) at any time by logging in to internet banking or by contacting customer service.

    See below to find out what you can save!

    *Loan applications must be received by 31st December 2021, and settled by 31st March 2022.

    See more
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    Loan Features

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    Super Low Rate

    Bpay icon

    Pay Anyone & BPAY® Available

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    Weekly, Fortnightly or Monthly Repayments

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    Multiple Loan Splits Possible

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    No Monthly Fees

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    Free Online Redraws

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    Extra Repayments $

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    Schedule Recurring Payments or Transfers

    *Offset and Visa Debit features also available on enquiry. Terms, conditions and additional charges may apply.

    What does a no-LMI home loan mean for you?

    Our no-LMI Star Choice home loan can help make your dream home ownership a reality – sooner rather than later. Star Choice helps our customers achieve this by putting your deposit money toward your purchase (and not LMI Premiums) – letting you pay off your home loan faster. And better yet, by not charging Lenders Mortgage Insurance, we can help you save thousands up-front on a purchase or refinance.

    Homestar Product Comparison Table

    Product Name Star Gold Owner Occupied
    Star Essentials Owner Occupied
    Star Classic Owner Occupied Variable Rate
    Star Choice Owner Occupied Variable Rate
    Star Classic Owner Occupied Fixed Rate 2 Year Special
    Star Classic Owner
    Occupied Fixed Rate
    Standard Rates
    1-3 Years

    Star Classic
    Owner Occupied
    Construction

    Principal & Interest Principal & Interest Principal & Interest Interest Only Principal & Interest Principal & Interest Principal & Interest Interest Only
    Rate (80% LVR) except Star Gold 1.79%p.a. 1.99%p.a. 2.09%p.a. 2.39%p.a. 1.99%p.a. 1.79%p.a. 2.39%p.a. 2.69%p.a. 2.39%p.a.
    Comparison Rate 1.84%p.a. 2.02%p.a. 2.12%p.a. 2.42%p.a. 2.02%p.a. 2.12%p.a. 2.19%p.a. 2.49%p.a. 2.52%p.a.
    Variable
    Term 30 Years 30 Years 30 Years 30 Years 30 Years 30 Years 30 Years 30 Years 30 Years
    Interest Only Period 5 Years 5 Years 5 Years
    Maximum Loan Amount
    (Single Security)*
    $850,000 $1,500,000 $1,500,000 $1,500,000 $1,000,000 $1,500,000 $1,500,000 $1,500,000 $1,250,000
    Maximum Loan Amount (MultipleSecurity)* N/A $2,000,000 $2,000,000 $2,000,000 N/A $2,000,000 $2,000,000 $2,000,000 $2,000,000
    Maximum Loan-to-Value Ratio 60% 80% 90% 90% 90% 90% 90% 90% 80%
    Accepts Weekly/Fortnightly/Monthly Payments Monthly Only Monthly Only
    LMI Applicable Above 80% Only Above 80% Only Above 80% Only Above 80% Only Above 80% Only
    Available for:
    Home Purchase
    Home Refinance
    Construction
    Features:
    Internet Banking
    BPAY
    Debit Card
    Free Loan Splits 4 4 4 4 4 4 4 4 4
    Redraw Max $20,000 p.a. Max $20,000 p.a. Max $20,000 p.a.
    Offset Account Optional Extra
    Rate May Differ
    Max $20,000 p.a. Max $20,000 p.a. Max $20,000 p.a.
    Read more Read more Read more Read more Read more Read more Read more

    *Loan borrowing amounts, Loan-to-Value Ratio and Rates are subject to terms, conditions, eligibility criteria and final credit assessment.

    Rates + Fees

    Fees Star Gold Owner Occupied
    Star Essentials Owner Occupied
    Star Classic Owner Occupied Variable Rate
    Star Choice Owner Occupied Variable Rate
    Star Classic Owner Occupied Fixed Rate 2 Year Special
    Star Classic Owner
    Occupied Fixed Rate
    Standard Rates
    1-3 Years

    Star Classic
    Owner Occupied
    Construction

    Principal & Interest Principal & Interest Principal & Interest Interest Only Principal & Interest Principal & Interest Principal & Interest Interest Only
    Application Fee $395 $0 $0 $0 $0 $0 $0 $0 Refer to the fees located on the Construction page
    Month Account Fee $0 $0 $0 $0 $0 $0 $0 $0
    Annual Account fee
    (fixed period Only)
    $0 $0 $0 $0 $0 $395 $395 $395
    Valuation Fee $251.35 $251.35 $251.35 $251.35 $251.35 $251.35 $251.35 $251.35
    Legal Documentation Fee $264 $264 $264 $264 $264 $264 $264 $264
    Fixed Rate Lock
    in Fee (optional)
    $495 $495 $495
    Verification of Identity Fee $27.5 $27.5 $27.5 $27.5 $27.5 $27.5 $27.5 $27.5
    PEXA Fee $57.2 $57.2 $57.2 $57.2 $57.2 $57.2 $57.2 $57.2
    Government Charges
    and Search Fees
    At Cost At Cost At Cost At Cost At Cost At Cost At Cost At Cost
    Discharge Fee $535 $535 $535 $535 $535 $535 $535 $535

    Homestar Product Comparison Table

    Product Name Star Classic
    Investment Variable Rate

    Star Classic
    Investment Fixed Rate
    2 Year Special

    Star Classic Owner
    Occupied Fixed Rate
    Standard Rates

    Star Classic
    Owner Occupied
    Construction

    Principal & Interest Interest Only Principal & Interest Interest Only
    Rate (80% LVR) 2.44%p.a. 2.74%p.a. 1.99%p.a. 2.74%p.a. 3.04%p.a. 2.74%p.a.
    Comparison Rate 2.47%p.a. 2.44%p.a. 2.60%p.a. 2.84%p.a.
    Variable
    Term 30 Years 30 Years 30 Years 30 Years 30 Years 30 Years
    Interest Only Period 5 Years 5 Years 5 Years
    Maximum Loan Amount
    (Single Security)*
    $1,500,000 $1,500,000 $1,000,000 $1,000,000 $1,000,000 $1,250,000
    Maximum Loan Amount (MultipleSecurity)* $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000
    Maximum Loan-to-Value Ratio 90% 90% 90% 90% 90% 80%
    Accepts Weekly/Fortnightly/Monthly Payments Monthly Only Monthly Only
    Available for:
    Home Purchase
    Home Refinance
    Construction
    Features:
    Internet Banking
    BPAY
    Debit Card
    Free Loan Splits 4 4 4 4 4 4
    Redraw Max $20,000 p.a. Max $20,000 p.a. Max $20,000 p.a.
    Offset Account Max $20,000 p.a. Max $20,000 p.a. Max $20,000 p.a.
    Read more Read more Read more Read more

    *Loan borrowing amounts, Loan-to-Value Ratio and Rates are subject to terms, conditions, eligibility criteria and final credit assessment.

    Rates + Fees

    Fees Star Classic
    Investment Variable Rate

    Star Classic
    Investment Fixed Rate
    2 Year Special

    Star Classic Owner
    Occupied Fixed Rate
    Standard Rates

    Star Classic
    Owner Occupied
    Construction

    Principal & Interest Interest Only Principal & Interest Interest Only
    Application Fee $0 $0 $0 $0 $0 Refer to the fees located on the Construction page
    Month Account Fee $0 $0 $0 $0 $0
    Annual Account fee (fixed period Only) $0 $0 $395 $395 $395
    Valuation Fee $251.35 $251.35 $251.35 $251.35 $251.35
    Legal Documentation Fee $264 $264 $264 $264 $264
    Fixed Rate Lock in Fee (optional) $495 $495 $495
    Verification of Identity Fee $27.5 $27.5 $27.5 $27.5 $27.5
    PEXA Fee $57.2 $57.2 $57.2 $57.2 $57.2
    Government Charges and Search Fees At Cost At Cost At Cost At Cost At Cost
    Discharge Fee $535 $535 $535 $535 $535

    What does Lenders Mortgage Insurance mean for the borrower?

    Lenders mortgage insurance (LMI) is an insurance policy which covers the mortgage or home loan lender against any losses they might incur in the event that the borrower can no longer pay loan repayments (known as defaulting on the home loan). For Australian home loans, Lenders Mortgage Insurance (LMI) is a one-off, non-transferrable, non-refundable fee that’s added to your home loan.  

    The individual circumstances and terms of your home loan will usually affect whether Lenders Mortgage Insurance can apply. This includes when you restructure your home loan, top it up or refinance. This is because there may be an increased risk associated with each application. Most lenders require borrowers to take out LMI where there is increased risk or higher potential of significant risk associated with your loan.  

    Lenders Mortgage Insurance is typically calculated based on the size of your deposit and how much you’re looking to borrow on your home loan. Lenders Mortgage Insurance is designed to protect the lender against any losses incurred if the borrower is unable to repay their home loan on time. 

    You should always compare your available home loan features and options, product disclosure statements and any other relevant terms and conditions before making a decision on any kind of insurance offer.

    Loan Scenario

    See what you could potentially save in up-front or monthly repayment costs with our no-LMI Star Choice home loan.

    10% Deposit Scenario  Upfront Premium LMI​ No LMI Premium ​​
    Purchase Price ​ $500,000​ $500,000​​​
    Deposit (10%)​ $50,000​ $50,000​​​
    + Settlement costs (inc. Stamp Duty) ​ $25,000​ $25,000​​​
    Minimum Funds Required ​​ $75,000​ $75,000​​​
    + Upfront Premium LMI Cost​ $11,865​​ $0
    Total Loan ​​ $461,865​ $450,000​
    Savings: $11,865
    15% Deposit Scenario  Upfront Premium LMI​ No LMI Premium ​​
    Purchase Price ​ $500,000​ $500,000​​​
    Deposit (10%)​ $75,000​ $75,000​​​
    + Settlement costs (inc. Stamp Duty) ​ $25,000​ $25,000​​​
    Minimum Funds Required ​​ $100,000​ $100,000​​​
    + Upfront Premium LMI Cost​ $6,810​​ $0
    Total Loan ​​ $406,810​​ $450,000​
    Savings: $6,810

    Got questions?

    What do I need to know before applying?

    All you need to begin your application online are details of your income, current credit obligations (like personal loans and car loans), available credit limits (from credit cards, store cards and interest fee accounts) and the amount you are looking to borrow.

    Can I apply for a Homestar home loan face-to-face with a lending specialist?

    In general, we do not offer face-to-face appointments because this would significantly add to the cost of providing you with your loan. We would need to pass this cost on to you in the form of higher interest rates or fees – which we really do not want to do! Our Lending Specialists use great loan processing technology so that we can do all the things that you would typically expect in a face-to-face loan application process by phone- and we can do it in a fraction of the time that a face-to- face meeting would take.

    What is Lenders Mortgage Insurance (LMI)?

    Lenders Mortgage Insurance (LMI) is insurance that protects the lender in the event the borrower defaults and the security property is sold and the funds from the proceeds of the sale are not enough to discharge the loan. The LMI then pays the Lender the shortfall.  The rights to recover the shortfall from all of the parties on the loan (borrowers) are then transferred across to the LMI who will pursue the shortfall. The cost of LMI insurance is a one off payment at the start of the loan. It is usually added to the loan amount and should not be confused with Building Insurance or Income Protection Insurance

    What is a Comparison Rate?

    A comparison rate is a legislated calculation which gives consumers an idea of the actual cost of the loan, as it includes the interest rate and the standard fees applicable to that loan. It avoids consumers being misled by lenders advertising a lower interest rate, but charging high fees to compensate for the low rate.

    How much does Lenders Mortgage Insurance typically cost?

    The initial costs of LMI typically varies by the size of the home loan and the Loan to Value Ratio (LVR). The cost can also depend on what type of borrower you are – for instance, first-time borrowers often pay a higher LMI than existing borrowers, even with the same LVR and home loan amount. Those refinancing their existing home loan, on the other hand, may expect to pay a lower premium.  

    Should I be paying Lenders Mortgage Insurance?

    LMI can be worth the cost in circumstances where you don’t have the time to save up an initial 20% deposit amount. In a property market where prices can rise faster than you can save, or if there’s a rare, limited-time opportunity for you to purchase your dream home at a reasonable price, getting in faster and paying the extra fee can provide you a better deal.  

    Can Lenders Mortgage Insurance be added to the loan later?

    LMI premiums can be paid as an one-time payment at loan settlement, or added to the overall home loan amount and paid off with the regular mortgage repayments. However, this option means the LMI premium will create interest (costing you more over the long term)Most home loan lenders generally prefer LMI paid upfront, but the option is usually there if your circumstances require.  

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    Getting Started

    Simply place an enquiry online or call us to get your home loan journey started! We’ll support you through the process from start to settlement.

    Pre-Qualification 

    Our Pre-qualification team will contact you to determine your home loan needs and eligibility. Once qualified, our team will have an appointment booked for you with a Loan Specialist.

    Appointment

    Our Loan Specialist team will go through any requirements for your loan, and help you work out which home loan option is best for you. Request for documents and identification process will be sent to you.  

    Processing

    Our team will gather your supplied documents and arrange required processing (credit checks, valuations and confirming your identification). We will package your home loan application for approval. 

    Submission

    Your home loan application will be sent for final approval. 

    Settlement

    Our team will liaise directly with you and any intermediaries to ensure a smooth settlement of your home loan. Enjoy your savings! 

    Need to work out whether it's easier to rent or buy?Click here to explore our Rent vs Buy calculator

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    About Homestar Finance

    Homestar Finance Pty Ltd ACN 109 413 498 Australian Credit Licence Number 390 860 has been providing affordable home loans to Australian families since 2004. We are a wholly owned subsidiary of Columbus Capital Pty Ltd, an Australian private company with over $7 billion in loans under management.

    Homestar Finance is a proud sponsor of the Sydney Thunder Cricket Team (KFC Big Bash League).

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    1 Rates shown apply to new eligible Owner Occupied home loans only, up to 80% LVR, loan amounts up to $1,000,000 and at least one applicant is on PAYG employment. Rates are subject to change without notice. Existing borrowers may have different interest rates which are dependent on the rate offered to the borrower at the date when a home loan settled and any reductions or increases the lender decided to make on the existing loan over time. Accordingly, there is not one standard variable rate that applies to all Homestar home loans and existing customers can confirm their current rate(s) by logging in to internet banking or by contacting customer service. Terms, conditions, and eligibility criteria apply.

    2 Comparison rates are based on a basic Homestar loan, on a $150,000 loan amount over 25 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

    3Third party cost(s) incurred by service provider(s) are payable and may vary or increase depending on the service provider, nature of the service and request. Any additional cost(s) are passed on directly to the applicants(s). If there is a variation or an increase, a separate quote will be provided.

    4Disbursements payable.

    5Discharge fee is waived if loan reaches full term as per the loan agreement.

    Other fees and charges may apply.

    DISCLAIMER: Terms, conditions and eligibility criteria apply to all our loan products and features. Fees, charges and disbursements are payable. Final approval is subject to credit assessment. Information valid as at 13th August 2021 which is subject to change without notice. Please consider if the product is appropriate for your individual circumstances. If you need assistance or have any questions about a product or feature and its suitability, please contact our Loan Specialists.

    Registered to BPAY Pty Ltd ABN 69 079 137 518