| 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
- Delayed customer service
- LVR(loan to value ratio) exceeding 80% is not accepted
- The borrower requires a 20% deposit plus purchasing costs
- Investment loans are at a much higher rate than owner-occupied loans
- Rejects Non-residents and Australian expats
- Temporary residents are not accepted
- Rejects Foreign income
- Bad credit history is not accepted; does not look at files for people who were bankrupt in the last seven years
- Doesn’t do construction loans
- They don’t do vacant land or off the plan loans
- Doesn’t provide support to apply for government grants and benefits such as the First Home Owners Grant and the First Home Loan Deposit Scheme
- Does not work with mortgage brokers
- Are strictly 100% online and do not entertain any clients in their office
- No branch access
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.
