Athena launch dynamic pricing home loan rates
The home loans fintech Athena have launched AcceleRates, a dynamic pricing model where customer rates are automatically dropped when they enter the new LVR tier.
It essentially rewards customers with lower rates as they pay down their home loan.
AcceleRates will have three price bands based at a LVR of
As a customer pays down their home loan to reach a new tier, Athena will automatically put customers onto the lower rate.
Nathan Walsh, chief executive and co-founder of Athena, says they want to motivate, encourage and reward customers for paying off their home loan
“Aussie borrowers are so frustrated by the painful negotiations with their current lender in order to get a fair rate", Walsh says.
"On average we are saving customers who switch to us $60,000 over the life of their loan.
"With our new AcceleRates pricing model, many of these customers will now save $70,000."
If Athena customers start out at the 80 per cent LVR tier and pay the minimum on a P&I loan, they would hit the 70 per cent LVR tier in foru years and two months.
They would hit Athen'a lowest rate three years and nine months later.
All existing customers will receive the rate drop on 30 Sept 2020. New customers who apply today will settle with the new rates.
Athena is also known for its innovative “Automatic Rate Match” which promises that existing customers will always be given the same rate as new customers on a like for like loan.
