Athena Home Loans: A Comprehensive Review [June 2023]

Athena Home Loans, a digital, non-bank lender, has been making waves in the Australian home loan market with its unique approach and competitive offerings. This lender, also known as Athena Mortgage or Athena Lending, is breaking the traditional mould of home loan providers with its customer-centric approach and innovative features. Athena’s mission is to provide a better home loan experience for Australians, and they are doing so by leveraging technology and prioritising transparency.

Athena’s unique selling propositions lie in its digital-first approach, competitive rates, and commitment to passing on full rate cuts to both new and existing customers. Unlike traditional banks, Athena operates entirely online, which allows for streamlined processes and cost savings that are passed on to customers. Their competitive rates are a major draw for borrowers, but what sets Athena apart is their commitment to fairness. When the Reserve Bank of Australia (RBA) cuts rates, Athena passes on the full cut to all customers, not just new ones. This practice, while not common in the industry, demonstrates Athena’s commitment to fairness and customer satisfaction.

In this comprehensive review, we will delve deeper into Athena’s home loan products, features, customer experiences, and more. Whether you’re a first-time homebuyer, a property investor, or someone looking to refinance an existing loan, this review will provide valuable insights into what Athena Home Loans has to offer.

Athena’s Home Loan Products

Athena offers a range of home loan options, also known as mortgage products, to cater to the diverse needs of Australian borrowers. These include Principal & Interest (P&I) and Interest-Only (IO) Home Loans.

Principal & Interest Home Loans

In a Principal & Interest home loan, your repayments go towards reducing both the principal (the amount you borrowed) and the interest charged on that principal. This type of loan is designed to be completely paid off over the term of the loan, and is a popular choice among homebuyers and investors alike.

Interest-Only Home Loans

Interest-Only home loans, on the other hand, require you to only pay the interest on the loan for a certain period (usually up to 5 years). This can result in lower repayments during the interest-only period, but it’s important to note that you won’t be reducing the principal during this time. These loans are often used by investors for tax planning purposes, or by homeowners who are going through life changes like a career shift or growing their family.

Loan Sizes and Eligibility

Athena’s loan sizes range between $100,000 and $2 million, catering to a wide range of borrowers – from first-time homebuyers to seasoned investors. However, Athena has certain eligibility criteria that borrowers must meet. These include a minimum loan amount, a maximum loan-to-value ratio (LVR), and certain credit score requirements.

Athena’s Broker Service

For those who don’t meet Athena’s eligibility criteria or are looking for a different type of loan, Athena’s broker service can help. This service connects borrowers with a network of brokers who can help find a suitable loan from a different bank or lender. This can be particularly helpful for borrowers with unique circumstances or those who need more personalised assistance.

Related: You may also be interested in Choicelend Home Loan Review.

Features of Athena Home Loans

Athena Home Loans offers a range of features designed to provide flexibility, savings, and convenience to borrowers. These include a No Fees Structure, Automatic Rate-Matching, a Free Redraw Facility, and an Online Home Loan Management system.

No Fees Structure

One of Athena’s standout features is its No Fees Structure, also known as a Zero Fees Policy. Unlike many lenders that charge application, ongoing, or exit fees, Athena does not. This can result in significant savings over the life of the loan, making Athena’s home loans more affordable in the long run.

Automatic Rate-Matching

Another unique feature of Athena Home Loans is the Automatic Rate-Matching, also known as Auto Rate Match. This feature ensures that existing customers benefit from the same rates given to new customers whenever there’s a rate reduction. This practice, while not common in the industry, demonstrates Athena’s commitment to fairness and customer satisfaction.

Free Redraw Facility

Athena also offers a Free Redraw Facility, which is a feature that allows borrowers to withdraw any extra repayments they’ve made on their loan. This can be particularly useful in case of emergencies or unexpected expenses. And the best part? Athena offers this feature at no extra cost.

Online Home Loan Management

Finally, Athena’s Online Home Loan Management system, also known as Digital Mortgage Management, allows borrowers to manage their home loan online. This includes making repayments, checking the loan balance, and updating personal details. This web-based home loan control feature provides convenience and flexibility to borrowers, allowing them to manage their home loan anytime, anywhere.

In the next section, we’ll explore the customer experiences with Athena Home Loans, focusing on what customers like and what they dislike.

Customer Experiences

Understanding customer experiences is crucial when considering a home loan provider. In this section, we’ll delve into what customers like and dislike about Athena Home Loans, based on client feedback and customer testimonials.

What Customers Like

Athena’s customer-centric approach is evident in the positive feedback received from borrowers. Here are some aspects that customers appreciate:

Excellent Support Experience

Customers have praised Athena’s support team for their quick responses to questions and their willingness to go above and beyond to assist borrowers. This excellent support experience contributes to a smooth and stress-free home loan process.

Smooth Application Process

Many customers have commended Athena for their efficient and straightforward application process. The digital mortgage management system allows for a seamless online application, making it easy for borrowers to apply for a home loan.

Transparency and No-Fees Structure

Athena’s commitment to transparency and their no-fees structure have been well-received by customers. Borrowers appreciate knowing exactly what they’re signing up for, with no hidden fees or charges.

What Customers Dislike

While Athena has received largely positive reviews, there are a few aspects that some customers felt could be improved:

Interest Rates

Some customers felt that Athena’s interest rates were not as competitive over time. While Athena offers competitive rates initially, a few customers have noted that the rates did not remain as competitive after a period of time.

Glitches on Settlement Day

A few customers reported experiencing glitches on the settlement day. These technical issues caused some inconvenience, although they were eventually resolved.

Application Software and Automated Messages

Some customers had issues with the application software and found the automated messages to be impersonal. These customers felt that there was room for improvement in Athena’s digital platform and communication.

What Customers Like	What Customers Dislike
Excellent Support Experience: Quick responses and helpful assistance from the support team.	Interest Rates: Some customers felt that Athena’s interest rates were not as competitive over time.
Smooth Application Process: Efficient and straightforward online application process.	Glitches on Settlement Day: A few customers reported experiencing technical issues on the settlement day.
Transparency and No-Fees Structure: Clear communication and no hidden fees or charges.	Application Software and Automated Messages: Some customers had issues with the application software and found the automated messages to be impersonal.

Related: You may also be interested in How to refinance home loan in Australia.

Pros and Cons of Athena Home Loans

Like any lender, Athena Home Loans has its strengths and weaknesses. In this section, we’ll delve into the benefits of choosing Athena, also known as the pros, as well as the limitations and considerations, or the cons.

Benefits of Choosing Athena

Athena Home Loans offers several advantages that make it an attractive option for many borrowers. Here are some of the key benefits:

Competitive Variable Interest Rates

Athena offers competitive variable interest rates, which can result in significant savings over the life of the loan. These attractive rates make Athena a compelling choice for borrowers looking for a cost-effective home loan.

100% Online Application and Approval Process

Athena’s 100% online application and approval process, also known as digital mortgage management, provides convenience and efficiency. Borrowers can apply for a home loan from the comfort of their own home, at a time that suits them.

Flexibility to Choose Your Own Loan Period

Athena offers the flexibility to choose your own loan period, ranging from 1 to 30 years. This allows borrowers to tailor their home loan to their personal circumstances and financial goals.

Limitations and Considerations

While Athena offers many benefits, there are also some limitations and considerations that potential borrowers should be aware of:

High Deposit Requirements

Athena has high deposit requirements, which may be a barrier for some borrowers. Borrowers need to have a deposit of at least 20% of the property value, which is higher than some other lenders.

Strict Lending Criteria

Athena has strict lending criteria, including certain credit score requirements. This means that not all borrowers will be eligible for an Athena home loan.

Does Not Accept Self-Employed Borrowers Unless They Meet Certain Conditions

Athena does not accept self-employed borrowers unless they meet certain conditions. This could be a limitation for self-employed individuals looking for a home loan.

In the next section, we’ll explore Athena’s track record and reputation in the market.

Athena’s Track Record and Reputation

Athena’s track record and reputation in the market are key considerations for potential borrowers. In this section, we’ll delve into Athena’s history of rate cuts and customer benefits, as well as customer reviews and feedback.

Rate Cuts and Customer Benefits

Athena has a solid track record of passing on RBA rate cuts to their customers. When the Reserve Bank of Australia (RBA) cuts rates, Athena passes on the full cut to all customers, not just new ones. This practice, known as Auto Rate Match, demonstrates Athena’s commitment to fairness and customer satisfaction. It also means that Athena’s customers can benefit from lower interest rates, resulting in significant savings over the life of the loan.

Customer Reviews and Feedback

Customer reviews and feedback provide valuable insights into the experiences of real Athena customers. As we’ve seen in the previous section, Athena has received largely positive reviews, with customers appreciating the excellent support experience, the smooth application process, and the transparency of the no-fees structure. However, some customers felt that Athena’s interest rates were not as competitive over time, and there were a few glitches on the settlement day.

While no lender can please everyone, the overall positive feedback indicates that Athena is doing many things right. Their commitment to transparency, fairness, and customer satisfaction has earned them a good reputation in the market.

Comparison with Other Lenders

When choosing a home loan provider, it’s important to consider how they compare with other lenders in the market. In this section, we’ll provide a competitive analysis of Athena Home Loans and discuss Athena’s position in the market.

Competitive Analysis

Athena stands out from many traditional lenders due to its digital-first approach, no-fees structure, and commitment to passing on full rate cuts to all customers. However, it’s worth noting that other digital, non-bank lenders also offer similar features.

While Athena’s interest rates are competitive, some other lenders may offer lower rates, especially for borrowers with a large deposit or a strong credit score. Additionally, some lenders may offer more flexibility in terms of loan features, such as offset accounts or the ability to split your loan between fixed and variable rates.

For a deeper dive into Athena’s offerings and how they stack up against other lenders, check out our detailed head-to-head comparison in our article, ‘Choicelend v/s Athena Home Loans: Which one’s better‘.

Athena’s Position in the Market

Despite being a relatively new player in the market, Athena has quickly established itself as a reputable and innovative lender. Their customer-centric approach and unique features have resonated with many borrowers, contributing to their rapid growth.

However, Athena’s strict lending criteria and high deposit requirements may limit their appeal to some borrowers. Additionally, while their digital platform provides convenience and efficiency, some borrowers may prefer the face-to-face service offered by traditional banks.

Conclusion

Choosing a home loan provider is a significant decision that can have a major impact on your financial future. In this final section, we’ll provide some concluding thoughts on Athena Home Loans and discuss their future prospects.

Final Thoughts on Athena Home Loans

Athena Home Loans offers a unique and customer-centric approach to home loans. Their no-fees structure, automatic rate-matching, and online home loan management make them an attractive option for many borrowers. Their commitment to transparency and fairness is evident in their practices, such as passing on full rate cuts to all customers and providing clear communication about fees and charges.

However, like any lender, Athena may not be the right fit for everyone. Their high deposit requirements and strict lending criteria may be a barrier for some borrowers. Additionally, while their digital platform provides convenience, some borrowers may prefer the personal service offered by traditional banks.

Future Prospects

Looking ahead, Athena’s future prospects look promising. Their innovative approach to home loans, combined with their commitment to customer satisfaction, positions them well for continued growth. As more borrowers seek out digital, non-bank lenders, Athena is well-placed to meet this demand.

However, the home loan market is highly competitive, and Athena will need to continue innovating and delivering exceptional customer service to maintain their position in the market.

In conclusion, Athena Home Loans is a compelling option for many borrowers, but it’s important to do your research and consider your personal circumstances before choosing a home loan provider.

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