Homestar Finance offers new record-low home loan interest rate with limited-time offer

Homestar Finance introduces one-year fixed special offer. Image source: lenetstan, Shutterstock.

Homestar Finance has hit the lead in the home loan rate race, introducing the lowest rate on Canstar’s database, available for a limited time to new customers in all Australian states and territories.

Homestar Finance has released a new one-year fixed rate special for owner-occupiers paying principal and interest.

The Star Classic – Owner Occupied Fixed Special loan has a rate of 1.98% (comparison rate 2.51%) for one year, which reverts to the Star Classic Essentials Variable loan at the end of that time unless the borrower switches to a different rate with Homestar or another lender.

The new record-low rate is available for a limited time for applications submitted by 30 September and settled by the end of the year.

It’s worth weighing up the fees and charges that may apply when switching to this rate or any new home loan offer. It has a $495 application fee, for instance.

There is no option for a guarantor – be it a family member or not – to assist with the loan deposit or to provide their own security for the loan, meaning applicants would likely need to come up with the necessary funds themselves.

Homestar’s new one-year special offer is ahead of the pack, with the next-lowest equivalent rate on Canstar’s database being 2.09% from Greater Bank (comparison rate 3.53%).

Loans.com.au also offers a home loan starting with a ‘1’, but it is a variable rate with a one-year introductory period.

This article was reviewed by our Sub-editor Tom Letts before it was published as part of our fact-checking process.

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Ellie McLachlan

Former Content Lead

Ellie McLachlan is the former Content Lead at Canstar, helping to shape and deliver the content strategy. She specialises in covering mortgage and everday money topics and breaking finance news. An experienced journalist, Ellie has made her mark working in digital, broadcast and print media, serving in positions such as Editor at News Corp Australia's Compare Money and also News.com.au's Best Of Money, as Story Strategy Coach at the Australian Conservation Foundation, as a lifestyle reporter at The Urban List, The Courier Mail and The Sunshine Coast Daily, as well as radio presenter at 4ZZZ. While at Canstar, Ellie has written well over 500 finance articles and her work is regularly referenced by other publishers, including Business Insider, The Motley Fool and The New Daily. Her expert financial commentary has been featured in publications such as Yahoo Finance and the Herald Sun. Ellie studied a Bachelor of Journalism and Arts (Peace and Conflict Studies) at the University of Queensland. Follow Ellie on LinkedIn, Twitter, and Canstar on Facebook. Meet the Canstar Editorial Team.