Press Release 7 April 2010

Simple home loans without fees

Homestar Finance is attracting home buyers with more suitable home loans and competitive prices.

As housing affordability grows further out of reach people are sick and tired of increasing interest rates and bank fees that look after profits and shareholders. Banks typically charge between $600 and $1,000 in upfront fees on a new home loan which are a significant element of big bank profits.

HomeStar CEO Julian Mitton believes these fees are excessive and also obscure the true cost of a home loan to the customer. In response, HomeStar is going the extra mile to look after customers by removing as many fees as possible with its top rated home loan products.

“Homestar gives customers a real advantage over a bank loan by removing upfront fees. We rebate fees for valuations and legals to present a better deal for customers. We want to make it easy for them to switch to a better deal,” Mr Mitton said.

HomeStar’s flagship variable loans, the 5.97% Superstar and 6.13% Advantage, have no upfront fees.

Homestar CEO Julian Mitton believes that delivering the best value in home loans is not just about lower interest rates and says that people are looking for flexibility and simplicity.

“Over a 30 year loan-life, income situations are always changing. By removing upfront establishment fees, people have the chance to easily switch their home loan to match their life goals,” Mr Mitton said. 

“We have now dropped all upfront fees on our Superstar 5.97% product to give our customers this freedom to exit or adjust. Our Advantage Variable 6.13% product has no fees whatsoever. They both offer outstanding value, have full unlimited redraw and are comparable to bank products at nearly 1% higher cost.”

Unlike other lenders, HomeStar can afford to keep its fees down and pass on cost advantages to customers because it doesn’t need to pay brokers, commissions and related overheads.

“We set out to create a lower cost model without dropping the ball on personal service and customer satisfaction,” Mr Mitton said.

“Every customer is looked after by one designated mortgage professional because our whole proposition is being the lender you can depend on.”

“Our customers are happy, referrals are high and we are writing more and more home loans every month,” he said.