Homestar Finance has introduced greater flexibility for borrowers taking out 4-year and 5-year fixed rate home loans, by changing the way we apply our break cost fees.
A break cost fee is a fee that is normally applied by home loan lenders, so they can recoup their costs if a borrower switches or repays a fixed rate loan early.
However, for all fixed rate loans approved for new customers after 2 June 2025, borrowers who hold their fixed rate loan for 3 years or more, will no longer be charged a break cost fee if:
- They switch to a variable rate product, or
- Refinance to another lender.
The best of both worlds
Homestar Finance’s Break Cost Fee Waiver means customers can enjoy the peace of mind that comes from securing a great fixed rate, providing certainty over their home loan costs.
Borrowers now also have the flexibility to make changes after three years if they take out a 4-year or 5-year fixed rate loan, giving them the option to adapt as their needs evolve.
“Homestar Finance recognises the world doesn’t stand still, and sometimes, our customers’ needs change as their life circumstances change,” said Ilias Pavlopoulos, Co-Founder and COO of ColCap Financial Group, the parent company of Homestar Finance.
“Our Break Cost Fee Waiver is an exciting way for our customers to gain certainty over their rate, while having the freedom to make changes if the need does arise. At Homestar Finance, we are committed to providing greater value and flexibility to borrowers building their dreams through Australian property ownership,” he said.
Breaking down break costs
Break cost fees will still apply to fixed rate loans after 2 June 2025 for new Homestar Finance customers, where the fixed rate loan is held for less than 3 years.
Please refer to our Break Cost Fee Fact Sheet for details on how the costs are calculated and when they’re charged.
Get more than a better deal with Homestar Finance.
For great rates, great savings and great service, Homestar Finance has you covered. Fill in your details to connect with a dedicated lending specialist who will guide you through your refinancing options
