Athena Home Loans has introduced a mortgage with a rate that falls as the borrower pays down the loan. The AcceleRATE loan has three rate tiers based on the loan-to-valuation ratio of the loan.
If the LVR is between 70 and 80 per cent, the rate is 2.54 per cent. As the loan is paid down and the LVR falls below 70 per cent the rate falls to 2.49 per cent, and when the LVR falls below 60 per cent the rate falls to 2.39 per cent.
Athena said it will check loan balances monthly and apply any rate cuts automatically.
For investors paying principal and interest, the same LVR tiers apply but the rates change from 2.94 per cent to 2.89 per cent and then 2.79 per cent.
Athena said its “rate match” feature would apply to the loan, so that existing customers will be eligible for any lower offers in future.
Redraw amounts are not included in the calculation of the LVR.