Overview

flagFounded: 2004

businessOwned by: Columbus Capital

monetization_onFunded by: Several Australian and international mortgage funders

securityLMI Provider: N/A (has a strategic alliance with Origin Mortgage Finance Service—previously a part of ANZ Group)

account_balanceLender type: Online non-bank lender

Homestar Finance is not an available lender on our panel. This is a review only.

Homestar Finance is a 100% online non-bank lender in Australia that has been around since 2004.

It provides affordable home loans at competitive rates to clients by utilising wholesale funds sourced from several significant funders. Most of its major funders are from Australia, but it also sources funds from the overseas mortgage markets.

Homestar Finance’s strategic alliance with Origin MMS—the oldest non-bank, has helped gain some of its market authority that it currently possesses.

However, compared to other non-bank lenders, it has more cons than pros due to its online status and no-broker policy.


How do Homestar Finance’s home loans compare?

Pros

  • Simple home loans
  • Extremely competitive interest rates available
  • Redraw facility without charging any fees
  • Can make extra repayments on variable rate loans
  • Provides interest-only home loans
  • No ongoing or upfront fees except for government fees

Cons


What home loan types does it have?

Homestar Finance’s competitive rates have allowed it to design some award-winning products that are competitive and market-leading.

The loan products that it provides through different packages are all pretty straightforward.

The three types of loans that it provides are owner-occupied home loans, investment home loans, and refinancing home loans.


Owner-occupied home loans

Homestar Finance provides one of the cheapest owner-occupied home loans available. Like in any other home loan, borrowers have the liberty to choose whether they want to pay a fixed interest rate or pay interests on a variable rate.

The standard features available across all owner-occupier packages it provides are:

  • Up to 80% LVR
  • Unrestricted additional repayments
  • Free online redraws
  • Multiple loan splits
  • The choice to make weekly, fortnightly, or monthly repayments
  • Can schedule recurring payments or transfers
  • Pay anyone and Bpay available

Investment home loans

The investment home loans offered are at a much higher fixed and variable interest rate than its owner-occupied home loans rate.

The standard features available across all invested home loan packages it provides are the same as for owner-occupier home loans, except:

  • Borrowers can make monthly repayments only
  • Visa debit card is equipped with ATM access

Refinancing home loans

Homestar Finance provides Mortgage packages for refinancing the existing home loan for their clients, comparable to those offered by other lenders.

There are two cons to its refinancing home loan:

  • Takes as long as 4-6 weeks for completing the entire process
  • Several refinancing costs associated

Tips for applying with Homestar Finance

You can apply with Homestar Finance if you:

  • Are an Australian resident
  • Have a clean credit file
  • Are looking for a simple home loan with highly competitive interest rates
  • Have enough knowledge of the property market and home loan process
  • Can afford to make a deposit that equals 20% of the property price

Do not apply with Homestar Finance if:

  • Want a Low Doc or No Doc home loan
  • Do not have a straightforward application; since the entire process is online-based, their system might reject your application if it is too complex
  • Do not have enough knowledge of home loans and technicalities involved
  • Want your home loan process to complete quickly
  • Are looking for top-notch customer service to guide you through the process

Compare Homestar Finance to other lenders

Still not sure which lender is right for you? Talk to one of our specialist mortgage brokers at Home Loan Experts.

We will first discuss your situation, complete a pre-assessment and find a couple of suitable lender options for you.

Give us a call on 1300 889 743 or fill in our free online enquiry form.

Why use us?

We aim to set an example by delivering what we promise: a higher level of service, better advice and better home loans.

pin_drop

Australia-wide services

We finance properties anywhere in Australia for people anywhere in the world.

monetization_on

Get incredible interest rates

Our relationships with our panel of lenders allow us to negotiate your interest rate.

thumb_up

We get tough loans approved

We can help you navigate the often complex pre-approval and application process.

favorite

Our customers love us

We receive hundreds of love letters from our customers.

Discover more reasons to use Home Loan Experts

We’re experts at
finding the right home loan solution for our customers

Find out if you qualify Talk to expert