Want to save money with lower interest rates? Like more flexibility from an investment loan? Need to access equity in your property to purchase an investment property? Talk to our team about your investment loan needs today.
At Homestar Finance, we help property investors get a better deal, with products suited to investors and provide dedicated support every step of the way for even the most complex of investment scenarios.
We offer competitive rates to suit investment refinancing and purchasing needs.
A dedicated loan specialist will support you every step of the way.
No application fee, no monthly fee, no offset account fee, and no annual fee.
If you are looking to purchase property as part of your SMSF portfolio, we have a specialist SMSF loan product.
Spend less time on admin and paperwork, maximise the benefits of money-saving offset accounts, and harness tax deduction benefits with home loans tailored to smart investment structures.
Access equity through a cash out refinance, making interest only repayments, or fix your rate—we have options to suit your needs.
Variable principal & interest
Interest only
Fixed principal & interest
You can bundle and save* on your home loan – simply, bring over your existing owner occupied home loan to us. When you bundle it with a Homestar Finance investment home loan, we will drop the interest rate on one of our already market-leading rates.
We don’t charge an application fee, annual fee, monthly fee or offset account fee.
Any fees you do pay are transparent and simple, so you always know where you stand.
Check out our rates and consider your options.
|
Rates |
||
|---|---|---|
| Loan-to-Value Ratio1 | Interest Rate2 | Comparison Rate^ |
| Variable - Up to 70% LVR1 | 5.99% p.a.2 | 5.99% p.a.^ |
| Variable - Up to 80% LVR1 | 6.09% p.a.2 | 6.09% p.a.^ |
| Variable – Up to 90% LVR1 | 6.54% p.a.2 | 6.54% p.a.^ |
| Fixed (5 years) – Up to 80% LVR1 | 5.75% p.a.2 | 5.97% p.a.^ |
| Fixed (2 year) – Up to 80% LVR1 | 5.85% p.a.2 | 6.07% p.a.^ |
| Fixed (1 year) – Up to 80% LVR1 | 6.95% p.a.2 | 6.21% p.a.^ |
| Variable - Up to 80% LVR - P&I1 | 6.39% p.a.2 | 6.42% p.a.^ |
| Variable - Up to 80% LVR - Interest only1 | 6.79% p.a.2 | 6.82% p.a.^ |
| Fixed (1 Year) - Up to 80% LVR - P&I1 | 7.35% p.a.2 | 6.52% p.a.^ |
1 LVR means ‘Loan to Value Ratio’. It is the amount of your loan divided by the valuation of your property, calculated as a percentage. For example, if you apply for a loan of $400,000, which will be secured by a property valued at $500,000, your LVR is 80%.
2 Rates shown apply to new eligible Owner Occupieda or Investment home loansb only, loan limits may apply depending on your product (refer to the product page) 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.
^ Comparison rates are based 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.
|
Fees |
Owner Occupied Variable Products Principal & Interest |
Owner Occupied Fixed Rate Product Principal & Interest |
Investment Variable Rate Principal & Interest |
Investment Fixed Rate Principal & Interest |
|---|---|---|---|---|
| Application Fee | $0 | $0 | $0 | $0 |
| Annual / Monthly Fee | $0 | $0 | $0 | $0 |
| Valuation Fee (the minimum cost will be covered, any additional expenses incurred due to travel or properties greater than $1m in value may incur a fee) Valuation Fee (the minimum cost will be covered, any additional expenses incurred due to travel or properties greater than $1m in value may incur a fee) | $0 | $0 | $0 | $0 |
| Lenders Legal Preparation Fee | $0 | $0 | $0 | $0 |
| Fixed Rate Lock in Fee (optional) | $0 | $4953 | $0 | $4953 |
| Settlement fee | $0 | $3953,4 | $3953,4 | $3953,4 |
| PEXA Fee | $66.333 | $66.333 | $66.333 | $66.333 |
| Government Charges | At Cost3 | At Cost3 | At Cost3 | At Cost3 |
| Disbursements (including title search fees) | $1503 | $1503 | $1503 | $1503 |
| Discharge Fee | $5955 | $5955 | $5955 | $5955 |
| Break Cost | $0 | Varied6 | $0 | Varied6 |
Other fees and charges may apply.
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 18th April 2024 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.
When you take out a principal and interest loan, you pay down both the interest incurred and the principal balance. The main advantage of a principal and interest loan is that your interest payments decrease over time as you pay off the loan balance.
As interest charges on an investment home loan are tax-deductible, the tax-deductible benefit will reduce over time as the interest charge component decreases in response to the outstanding principal balance being paid down.
Depending on the financial plans you have with your Accountant, it is worth considering that as the principal component decreases, the amount of interest being charged will also decrease.
Conversely, by taking out an interest only loan, there is a fixed period or loan term where you pay off only the interest. Though this period will vary across different lenders and loan options, it’s typically around five years. Once this period ends, your loan will convert into a principal and interest loan.
Since the principal loan balance does not change for the fixed period, the maximum amount of interest is incurred as an investment expense.
At the end of the interest only period, your loan structure changes. Your interest only loan becomes a principal and interest loan. This transition is an important aspect to consider when opting /applying for an extension of a further interest only period for your investment home loan.
Assuming interest rates remain stable, an interest only loan allows you to keep your loan repayments lower and earn the maximum amount of interest on your loan. Additionally, you can keep the excess money that would have gone towards the principal amount in your offset account, effectively reducing the interest you pay on your loan.
Although interest only loans can take longer to pay off, they are typically the preferred option for property investors. It is recommended to seek financial advice when proceeding with an interest only loan.
Our Star Classic variable principal and interest and variable interest only home loan allows you to establish up to 4 offset accounts. An offset account is available with a Star Classic Fixed home loan. A maximum of $20,000 per year can be kept in the offset account linked to a Star Classic Fixed home loan. No maximum balance restrictions apply to offset accounts linked to a Star Classic variable principal and interest investment home loan and Star Classic variable interest only investment home loan.
Used wisely, offset accounts can save you thousands, if not tens of thousands, of dollars in interest over the life of your loan.
Consider setting up an offset account specifically to receive tenant rental payments. A separate offset account can be helpful for accumulating savings for various property-related expenses, such as strata or council rates. When it comes to tax time and managing your investment property-related finances, separate offset accounts can mean less time spent on admin and paperwork.
Get a clear picture of the initial out-of-pocket expenses such as stamp duty and planning your budget in advance.
Homestar has a plethora of home loan related calculators to make investing just a little bit easier.
Our friendly team can help you find the right solution for your investment home loan needs.
Gather your documents to make the application as smooth as possible.
If you meet certain criteria, you could be eligible for an extra speedy approval.
Our friendly team can help you find the right solution for your investment home loan needs.
Gather your documents to make the application as smooth as possible.
If you meet certain criteria, you could be eligible for an extra speedy approval.
Australians deserve a better deal. That’s why we’ve been challenging the market and rewriting the rulebook, since 2004.
By listening and understanding what’s important to property owners, we’ve developed a customer focused approach that helps thousands of property owners feel in control and save money every day.
Great customer service and competitive rates
Amazing service from the retention team, they were very efficient, fair and straight to the point. From the moment I first contacted them, to the last step of getting my rate updates in the system, everything was done and dusted within 10 days. I had a lot of queries, so I’m sure they would have done it in less than a week! Read more
Happy services
Great Experience, thanks Homestar! Edy and the rest of the homestar team made it very easy. He kept us informed during the whole process and was very professional and answered all our questions along the way. We have used them for 6 years with our previous property so they are consistent. I would highly recommend them. Read more
Amazing Customer Service & Very Helpful
Andrew and the rest of the team are really amazing and helpful all through out our loan process. Thank you Homestar for fast accommodation and absolutely wonderful customer service! Read more
John and Michel were fantastic- the entire process was smooth and both were very responsive
Beats any bank hands down. Their Service was top notch and thorough and helped me navigate my way around what could have been a challenging process give mine was spread between a Top Up and an investment loan. Read more
Great customer service
I’ve been a Homestar customer for a few years now, and recently requested a switch to a more competitive product. I’ve been impressed by the quality of the customer service (especially Regina from the Retentions team), and have had friendly & professional responses throughout the process. Importantly, the turnaround time has been super quick, with minimal time spent on hold / waiting for email responses. Read more
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
Other than your own financial circumstances and loan structure, your priority considerations should be looking at how you can make the most of potential tax benefits associated with property investment.
There are a range of potential tax deductions you may claim as part of outgoing investment property expenses, including:
Of these, the three most significant points you need to be aware of are loan interest, negative gearing and capital gains tax.
This answer is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making decisions based on this information.
Whilst it isn’t possible to receive tax exemptions for the principal amount of the loan, it can be possible to claim deductions for interest accrued over the duration of your loan as a tax-deductible expense.
This is why a popular strategy among savvy investors is to sign up for an interest-only home loan so you can leverage interest repayments to your advantage. This way, all loan repayments during the initial interest only period may be eligible for tax deductions, and this can help with your cash flow in the short term.
This answer is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making decisions based on this information
In plain language, negative gearing is a method of writing off your losses by deducting them from your taxes at the end of the financial year.
If your overall expenses surpass your total income earned from the investment property, you may be eligible for negative gearing tax deductions.
Although negative gearing may seem confusing or redundant at first, it is a highly effective method of minimising short-term expenses before you eventually sell. By writing off these losses on tax, you can make use of negative gearing strategies to offset the capital gains tax and maximise your return on investment when you eventually sell the property on for a profit.
The capital gains tax is a tax imposed on profits made from selling high value assets including shares, a business or property.
Capital gains tax can strip you of a sizeable portion of your profit, since 100% of the profit from the sale is added to your taxable income. However, if the investment property has been held under your name for more than 12 months, then only 50% of the profit will be added toward your assessable income.
That’s why negative gearing can help you hold on to the property for at least 12 months whilst minimising short-term losses and in turn, allowing you to pocket more of the profit.
Rental yield refers to the difference between the income made from leasing and the overall cost of your investment property expressed as a percentage.
1 Rates shown apply to new eligible Investment loans only, loan limits may apply depending on your product (refer to the product page) and at least one applicant is on PAYG employment. For fixed rate loans, after the fixed rate term, a variable rate will apply. 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 $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.
6The break cost fee varies based on several factors, including the number of days left on the fixed rate period, the amount the market rate has moved, the outstanding loan amount and remaining cash flows.
*Bundle and save disclaimer: *Discounts apply to our Star Classic loan only; no further discount can be applied to the owner-occupied Star Gold or Star Essentials products. Existing home loans with Origin Mortgage Management Services and its partners are also excluded from this offer.
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 21st April 2024 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.
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