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Star Choice

90% LVR, Lender Paid LMI, and a rate revert loyalty feature

Talk to us about your home loan needs and we will package up a home loan with the features you want and tailor the rate to your circumstance.

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    Star Choice enables property owners to achieve their property dream faster with our lender paid Lenders Mortgage Insurance (LMI)
    premiums, and no monthly fees. And it doesn’t stop there! You can also save with our rate revert feature.

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    Get access to a range of benefits

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    Rate revert feature

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    Free online redraws

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    Lender Paid LMI
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    Up to 90% LVR
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    Weekly, fortnightly or monthly repayments
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    Multiple loan splits

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    Extra repayments
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    Pay Anyone, BPay, and digital wallet payments
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    Offset account and
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    View product brochure

    *Refer to our fees table. Disbursement cost and Government charges still apply.

    Save with our rate revert feature

    We value our customers who choose to be part of our wonderful Homestar Finance family.  This why when you stay with us 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!

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    Your loyalty will be rewarded with an interest rate drop:
    85% Loan to Value Ratio (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 Finance home loans. If you’re an existing customer, you can confirm your current rate(s) by accessing your online account or by reaching out to our customer service team.

    See below to find out what you can save!

    See what you could potentially save in up-front or monthly repayment costs with our Lender Paid LMI Star Choice home loan.

    10% Deposit scenario  Upfront premium LMI​ Lender Paid 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 ccost​ $11,865​​ $0
    Total loan ​​ $461,865​ $450,000​
    Savings: $11,865
    15% Deposit scenario  Upfront premium LMI​ Lender Paid 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

    Compare our home loans

    Home loan 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 Star Classic Owner Occupied
    Construction
    Principal & Interest Principal & Interest Principal & Interest Interest Only Principal & Interest 1 Year P&I 2 Years P&I 3 Years P&I
    Rate (80% LVR)
    except Star Gold
    5.99%p.a. 5.99%p.a. 6.09%p.a. 6.49%p.a. 5.99%p.a. 6.95%p.a. 6.95%p.a. 6.95%p.a. 6.89%p.a.
    Comparison Rate 5.99%p.a. 5.99%p.a. 6.09%p.a. 6.49%p.a. 6.02%p.a. 6.21%p.a. 6.29%p.a. 6.36%p.a. 6.44%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
    Maximum Loan Amount
    (Single Security)*
    $1,000,000 $2,000,000 $2,000,000 $2,000,000 $1,000,000 $2,000,000 $2,000,000 $2,000,000 $1,250,000
    Maximum
    Loan-to-Value Ratio
    70% 80% 90% 90% 90% 90% 90% 90% 80%
    Accepts Weekly/Fortnightly/
    Monthly Payments
    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 Optional Extra
    Rate May Differ
    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 All Other Products
    (Variable Rate)
    Star Classic Fixed
    (
    1 - 4 years)
    Star Classic Fixed
    (
    5 years)
    Star Classic
    Owner Occupied
    Construction
    Principal & Interest Principal & Interest Principal & Interest Principal & Interest
    Application Fee $0 $0 $0 $0 Refer to the fees located on the Construction page
    Annual / Monthly Fee $0 $0 $0 $0
    Valuation Fee (per property up to $1m) $0 $0 $0 $0
    Legal Preparation Fee $0 $0 $0 $0
    Fixed Rate Lock
    in Fee (optional)
    $0 $0 $4953,4 $4953,4
    Settlement Fees $0 $3953,4 $3953,4 $0
    PEXA Fee $66.333,4 $66.333,4 $66.333,4 $66.333,4
    Government Charges At Cost3,4 At Cost3,4 At Cost3,4 At Cost3,4
    Disbursements (including title search fees) $1503,4 $1503,4 $1503,4 $1503,4
    Discharge Fee $5355 $5355 $5355 $5355

    Home loan comparison table

    Product Name Star Classic
    Investment Variable Rate
    Star Classic
    Investment Fixed Rate
    Star Classic
    Owner Occupied
    Construction
    Principal & Interest Interest Only 1 Year
    Principal & Interest
    2 Year
    Principal & Interest
    3 Year
    Principal & Interest
    Rate (80% LVR) 6.39%p.a. 6.79%p.a. 7.35%p.a. 7.35%p.a. 7.35%p.a. 7.19%p.a.
    Comparison Rate 6.42%p.a. 6.82%p.a. 6.52%p.a. 6.61%p.a. 6.70%p.a. 6.36%p.a.
    Variable
    Term 30 Years 30 Years 30 Years 30 Years 30 Years 30 Years
    Interest Only Period 5 Years 5 Years
    Maximum Loan Amount
    (Single Security)*
    $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $1,250,000
    Maximum Loan-to-Value Ratio 90% 90% 90% 90% 90% 80%
    Accepts Weekly/Fortnightly/Monthly Payments 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

    *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
    Star Classic
    Owner Occupied
    Construction
    Principal & Interest Principal & Interest
    Application Fee $0 $0 Refer to the fees located on the Construction page
    Annual / Monthly Account Fee $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) $0 $0
    Legal Preparation Fee $0 $0
    Fixed Rate Lock in Fee (optional) $0 $4953,4
    Settlement fee $3953,4 $3953,4
    PEXA Fee $66.333,4 $66.333,4
    Government Charges At Cost3,4 At Cost3,4
    Disbursements (including title search fees) $1503,4 $1503,4
    Discharge Fee $5355 $5355

    We're an award winning lender

    Homestar Finance has been providing Australians with competitive and customer-focused home loan solutions since 2004.

    Our dedicated team of loan specialists are there to support you through your home loan journey, and take the time to get to know you so we can offer our customers a personalised service – making it easy to find a home loan solution that suits you.

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    Mozo Experts Choice Award 2023

    Investor Home Loan

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    Canstar Outstanding Value Home Loan Awards 2022

    Home Lender

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    Canstar Outstanding Value Home Loan Awards 2021

    Variable Home Lender

    award icon
    Canstar Outstanding Value Home Loan Awards 2022

    Variable Home Lender

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    Canstar Outstanding Value Home Loan Awards 2021

    Investment Variable Home Lender

    award icon
    Canstar Outstanding Value Home Loan Awards 2022

    Investment Variable Home Lender

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    Is it better to rent or buy? Click here to explore our rent vs buy calculator

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    Are you ready to save on your home loan?

    We've made it easy

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    Let’s talk

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

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    Find out how much $ you qualify for

    Based on your home loan needs, our team will work with you to determine how much you can qualify for.  Then you can shop around for a property with confidence knowing how much you can afford! 

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    One-on-one chat

    After liaising with one of agents and booking an appointment, a Loan Specialist will go through specific requirements for your home loan, and work out which option is best for you. This is where we’ll also share with you what documents are needed, and completed the identification process. 

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    Processing

    Once you’ve submitted all your documents, you can leave the rest of us.  Our team will do the ID checks,  the credit checks, and will organise the property valuation…packaging your home loan application for approval. 

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    Submission

    Your home loan application will be sent for final approval. 

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    Settlement

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

    Get pre-approval for your home loan online

    Your home loan pre-approval application can be done completely online via our form with no paperwork involved! The form takes only 5 minutes to complete, and you can save your progress and finish at any time.

    Apply now

    Explore our library of articles related to your property and investment journey

    Understanding your home loan

    How does a Lender Paid LMI home loan save you money?

    Our Lender Paid LMI Star Choice home loan can help make your dream home ownership a reality – sooner rather than later.

    Star Choice enables property owners achieve this by putting their deposit money toward the purchase – and not Lenders Mortgage Insurance (LMI) premiums, letting you pay off your home loan faster!  And better yet, by not charging LMI, we can help you save thousands up-front on a purchase or refinance.

    What does Lenders Mortgage Insurance (LMI) mean, and why does it matter?

    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, 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.

    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.  

    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 Finance 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.

    Got questions?

    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.

    1 Rates shown apply to new eligible Owner Occupied home loans only, at the LVR indicated, 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 Finance 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 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.

    Registered to BPAY Pty Ltd ABN 69 079 137 518