Homestar home loans interest rates & review

Homestar is a digital non-bank lender with access to funding at wholesale rates, and a provider of home loans for first home home buyers and refinancers.

What home loans does Homestar offer?

Homestar offers a number of variable rate home loans as well as fixed rate options. If you wish to know more, Canstar has a guide to the different types of home loans available and how they work.

Below we’ve listed a snapshot of Homestar’s owner-occupier home loan interest rates, fees and features available at the time of writing according to Homestar, for borrowers making principal and interest repayments.

Star Choice – No LMI (variable) – Canstar partner offer*

  • Interest rates
    LVR < 80%: 1.99% p.a. (comparison rate 2.02% p.a.)
    LVR < 85%: 2.49% p.a. (comparison rate 2.14% p.a.)
    LVR < 90%: 2.99% p.a. (comparison rate 2.41% p.a.)
  • Fees: $0 application; $0 ongoing fee; $251.35 valuation fee; $264 legal documentation fee; $27.50 verification of identity fee; $57.20 PEXA (property exchange) fee; government charges and search fees at cost;  $535 discharge fee.
  • Features: Up to 90% loan-to-value ratio (LVR) with no lenders mortgage insurance (LMI) costs, and a rate revert feature meaning eligible borrowers can get a loyalty-based rate reduction after being staying on the product for a period of time. See Homestar’s website for details.

*Loan applications must be received by 31 December 2021, and settled by 31March 2022.

Star Gold (variable)

  • Interest rate: 1.79% p.a. (comparison rate 1.84% p.a.)
  • Fees: $395 application fee; $0 ongoing fee; $251.35 valuation fee; $264 legal documentation fee; $27.50 verification of identity fee; $57.20 PEXA (property exchange) fee; government charges and search fees at cost;  $535 discharge fee.
  • Features: Up to 60% LVR, offset account, unlimited extra repayments, free online redraws, loan split possible.

Star Essentials (variable)

  • Interest rate: 1.99% p.a. (comparison rate 2.02% p.a.)
  • Fees: $0 application; $0 ongoing fee; $251.35 valuation fee; $264 legal documentation fee; $27.50 verification of identity fee; $57.20 PEXA (property exchange) fee; government charges and search fees at cost;  $535 discharge fee.
  • Features: Up to 80% LVR, unlimited extra repayments, free online redraws, loan split possible.

Star Classic (variable)

  • Interest rate: 2.09% p.a. (comparison rate 2.12% p.a.)
  • Fees: $0 application; $0 ongoing fee; $251.35 valuation fee; $264 legal documentation fee; $27.50 verification of identity fee; $57.20 PEXA (property exchange) fee; government charges and search fees at cost;  $535 discharge fee.
  • Features: Up to 80% LVR, offset account, unlimited extra repayments, free online redraws, loan split possible.

Star Classic (fixed)

  • Interest rate: 2-year fixed special rate 1.79% p.a. (comparison rate 2.12% p.a.); 1-3 year  fixed standard rate 2.39% p.a. (comparison rate 2.19% p.a.)
  • Fees: $0 application fee; $495 fixed rate lock In fee (optional); $395 annual account fee; $395 during the fixed period; $251.35 valuation fee; $264 legal documentation fee; $27.50 verification of identity fee; $57.20 PEXA (property exchange) fee; government charges and search fees at cost;  $535 discharge fee.
  • Features: Up to 80% LVR, offset account, extra repayments up to $20,000 per year, free online redraws, loan split possible.

How do I apply for a Homestar home loan?

Before getting started, you might first like to take a look at our home loan application checklist for some pointers, and use the Canstar website to compare home loans from a range of providers before choosing a product that suits your needs.

If you decide to apply for a Homestar home loan, you can start your application online, initially by completing a form which asks for contact information, the loan purpose and how much you would like to borrow.

Can you make extra repayments on a Homestar home loan?

Yes, Homestar allows you to make extra repayments on its owner-occupier variable rate home loans. On its fixed rate product, extra repayments are limited to $20,000 per year during the fixed term. Terms and conditions may apply – contact the lender for further details.

Are redraw facilities offered on Homestar home loans?

Yes, Homestar offers redraw facilities on its variable rate home loans.

About Homestar

Homestar is a non-bank lender that was established in 2004. It offers a range of home loan products to homeowners and investors. Its parent company is Columbus Capital Pty Ltd ACN 119 531 252 (Australian Credit Licence number 337 303), though Homestar offers home loans under its own name (ACN 109 413 498, Australian Credit Licence number 390 860).

Written by: Sean Callery | Last updated: October 1, 2021