Star Gold

Keeping our lowest rate – get all the features and a Super Low Rate from

1.79%

Interest rate p.a 1
(Principal and Interest)

1.84%

Comparison rate p.a 1,2


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    Our Lowest Interest Rate Home Loan

    The cheapest home loan is the one with the lowest interest rate. Low interest rates will keep your repayments down and mean that you end up paying less over the life of your home loan. Star Gold is our lowest interest rate home loan for owner occupiers looking to purchase a new home or refinance their existing mortgage.

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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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    Visa Debit Card

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    No Monthly Fees

    Up arrow with dollar sign and down arrow with percent sign icon

    Free Online Redraws

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    Schedule Recurring Payments or Transfers

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    Unrestricted Extra Repayments

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    Offset Account

    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
    Star Classic Owner Occupied
    Construction

    Principal & Interest Principal & Interest Principal & Interest Interest Only Principal & Interest 1 Year
    Principal & Interest
    2 Year
    Principal & Interest
    3 Year
    Principal & Interest
    Rate (80% LVR) except Star Gold 1.79%p.a. 2.24%p.a. 2.34%p.a. 2.64%p.a. 2.24%p.a. 5.14%p.a. 5.79%p.a. 5.99%p.a. 2.64%p.a.
    Comparison Rate 1.84%p.a. 2.27%p.a. 2.37%p.a. 2.67%p.a. 2.27%p.a. 2.62%p.a. 2.97%p.a. 3.31%p.a. 2.76%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)*
    $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
    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)
    All Other Products
    (Fixed Rate
    )
    Star Classic
    Owner Occupied
    Construction
    Principal & Interest Principal & Interest Principal & Interest
    Application Fee $395 $0 $0 Refer to the fees located on the Construction page
    Annual / Monthly Fee $0 $0 $0
    Valuation Fee (per property up to $1m) $244.203,4 $244.203,4 $244.203,4
    Legal Preparation Fee $2643,4 $2643,4 $2643,4
    Fixed Rate Lock
    in Fee (optional)
    $7493,4
    PEXA Fee $59.07 3,4 $59.07 3,4 $59.07 3,4
    Government Charges At Cost3,4 At Cost3,4 At Cost3,4
    Disbursements (including title search fees) $1503,4 $1503,4 $1503,4
    Discharge Fee $5355 $5355 $5355

    Homestar Product 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) 2.54%p.a. 2.84%p.a. 5.34%p.a. 5.99%p.a. 6.19%p.a. 2.84%p.a.
    Comparison Rate 2.57%p.a. 2.87%p.a. 2.82%p.a. 3.17%p.a. 3.51%p.a. 2.96%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)*
    $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
    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 (per property up to $1m) $244.203,4 $244.203,4
    Legal Preparation Fee $2643,4 $2643,4
    Fixed Rate Lock in Fee (optional) $7493,4
    PEXA Fee $59.073,4 $59.073,4
    Government Charges At Cost3,4 At Cost3,4
    Disbursements (including title search fees) $1503,4 $1503,4
    Discharge Fee $5355 $5355

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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! 

    Check out our Loan Comparison calculatorto help your find your ideal home loan

    Loan Comparison

    Check out all the calculators we have available to support your home loan journey

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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 $10 billion in loans under management.

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

    Learn more

    Frequently Asked Questions About
    Our Lowest Interest Rate Home Loan

    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.

    The Benefits of Low Interest Loans

    When seeking out or comparing home loans, low interest rates are a deciding factor. Home loans are long term debts, usually lasting between 25 and 30 years. Small changes in interest rates can add up to big expenses over time. The interest rate that you pay impacts your monthly repayments and the total amount of money paid for the overall loan. Therefore, low interest rate home loans like Star Gold will help you own your home sooner.

    Do I Want a Home Loan With a Low Interest Rate?

    The most affordable mortgage is usually the option with the lowest interest rate. In general, the lower your home loan interest rate, the more savings you will have over the life of the loan. For example, interest rates that are 0.5% lower could save you thousands of dollars. However, interest rates aren’t the only point to consider. When comparing home loans, you need to find one that suits your financial situation, with affordable fees and features that you will use.

    Find a balance between interest rates, fees and features that works for you. Understand your one-off and ongoing home loan fees and how they impact your repayment costs. Features such as offset accounts, visa debit cards, free online withdrawals, and unlimited repayments or transactions may be important for you. Some home loan features have an additional cost to identify what you need over what is nice to have.

    How Much Will I Save?

    The cost of a home loan is made up of the principal or total amount borrowed, interest rate and fees. To understand what repayments you will make on a home loan or how much money you could save, use our home loan repayment calculator.

    Compare different interest rates, loan terms and payment frequencies on the home loan calculator to understand their benefits. Variations of these factors will impact how much you will pay for your home loan in total over the loan term.

    Finding the Right Low Interest Rate Home Loan

    The home loan market is competitive. To get the best deal when you compare home loans, it’s important to do so against other similar home loans. Small differences in the percentage of interest rates between home loan products can add up to thousands of dollars long term.

    For example, our Star Gold low interest home loan has an interest rate of 1.79%. Let’s compare Star Gold against a home loan with an interest rate of 2.40% over 30 years for a loan amount of $600,000. The approximate savings in total interest repayments over the life of the loan with a Star Gold home loan would be $66,387, according to our home loan repayment calculator.

    To understand what other factors are important when choosing a home loan, continue reading:

    • Is the Lowest Interest Rate Home Loan Always the Cheapest Option?
    • Home Loan Fees: What to Look For

    Is the Lowest Interest Rate Home Loan Always the Cheapest Option?

    The defining factor of a cheaper home loan is a low interest rate. Low interest rates will reduce the amount you pay on interest for your home loan. This is significant as interest is one of the largest portions of your home loan repayments.

    The cheapest home loan for you and your family is one that meets your needs. To understand what home loan you need to purchase a property or refinance, ask the following:

    • What is the amount you need to borrow?
    • What is the shortest loan term you can afford?
    • What deposit amount can you put down?
    • What are your long term financial goals?
    • Do you want a fixed or variable rate home loan?
    • Do you have other debt you want to consolidate with a home loan?
    • What is the amount you need to borrow?
    • What is the shortest loan term you can afford?
    • What deposit amount can you put down?
    • What are your long term financial goals?
    • Do you want a fixed or variable rate home loan?
    • Do you have other debt you want to consolidate with a home loan?

    Home Loan Fees: What to Look For

    When comparing home loans it’s also crucial to compare all the fees involved. Home loans can include all sorts of different fees that add up to the total cost of the loan. This could include set up costs or one-off payments. Or additional account keeping fees payable monthly or annually. Understanding what all the fees are associated with your home loan will give you clarity on its true cost.

    Fees could include:

    • Application fees
    • Valuation fees
    • Legal fees
    • Settlement fees

    Our Star Gold home loan charges zero annual or monthly fees.

    • Annual or monthly fees
    • Package fees
    • Discharge fees
    • Other fees such as disbursements or for third parties.

    Other Ways to Save On Your Home Loan

    Aside from the overall benefit that low interest rates provide to your back pocket, there are other methods for saving on your home loan, such as:

    • Principal and interest repayments vs. interest only repayments
    • Save for a bigger deposit
    • Consider the length of your home loan

    Principal and Interest vs Interest Only Repayments

    Home loan repayments are combined costs of both principal and interest, plus any associated fees. The total amount of money borrowed as a home loan is called the principal amount. The principal starts out as a fixed amount that decreases with each repayment. Principal repayments are calculated based on a percentage of total debt remaining. Therefore, the more principal you pay off, the less your repayment amount will be.

    There are two repayment type options to consider when paying off your home:

    • Principal and interest repayments
    • Interest only repayments

    Principal and interest is the default repayment method. Each repayment of the principal reduces your loan balance. By consistently making principal and interest repayments over the life of the loan, you can save money on interest.

    Interest only repayments are a short term solution that reduces the amount you pay monthly on your home loan. Essentially, repayments include the interest amount and fees only. Offering flexibility, this option may provide relief given your personal financial circumstances.

    Usually interest only repayments are offered for up to 5 years on your home loan term. During this period, interest will be charged at a higher rate. Ultimately increasing the total amount of interest you will pay over the life of the loan. It also decreases the time you have to repay the principal. Meaning the principal will be charged at a higher percentage once the interest-only repayment period ceases.

    Save For a Bigger Deposit

    Having a larger deposit will help you now and into the future. A bigger deposit to put down when buying a home reduces the amount of money you need to borrow. The less money you borrow for your home loan, the less interest you will pay. This directly impacts the amount your monthly repayment will be and how much interest you will pay over the loan term.

    Deposits of 20% or more of the value of the home you buy also eliminate the need for Lenders Mortgage Insurance (LMI). Potentially saving you thousands of dollars, depending on the principal amount borrowed.

    Bigger deposits also demonstrate to a mortgage broker that a loan is of lower risk. It gives you borrowing power and increases your chance of getting your home loan approved.

    Consider the Length of Your Home Loan

    ​​The length of our mortgage loan term affects the total amount you must repay – shorter repayment terms mean higher upfront costs. However, the benefit if your home loan is shorter in length means that the overall principal and interest repayments will also be significantly lower.

    For example, let’s compare a $600,00 loan amount with a Star Gold home loan interest rate of 1.79% over different loan terms. If you were to take a 25 year loan term as opposed to a 30 year loan term, you could save approximately $31,216 in total repayments according to our home loan repayment calculator.

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    1 Rates shown apply to new eligible Owner Occupied home loans only, up to 60% LVR, loan amounts minimum of $250,000 and up to $850,000 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 10th May 2022 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