Find the right home loan for your investment property

Polly Fleeting

19 Jul 2019

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Looking to get into the investment property game and on the hunt for the right home loan to do it? 

With the RBA cut earlier in the month, and the official cash rate hitting a record low 1.00%, home loan providers have been slashing rates left, right and centre on both variable and fixed loans. So now could be the perfect time to nab a good deal and make your property investment dreams a reality.

Especially considering new research done by big bank, ANZ, which projects that property prices are going to hit the bottom of the market over the next few months so now is a good time to buy. And particularly for buyers in Sydney, Melbourne or Perth, with the median house price remaining 10-13% below peak in those cities. 

While getting a good rate is important, as an investor, there are also a bunch of home loan features you should keep your eye on, like an offset account or flexible repayment options. 

So with that in mind, here’s a handful of investment home loan options that could be perfect for you!

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Athena Variable Home Loan
  • 3.49% variable rate (3.45% comparison rate*) for investors

  • Free extra repayments and redraw facility

  • No upfront or ongoing fees

Athena’s Variable Home Loan is a competitive mortgage option for investors, with a low 3.49% (3.45% comparison rate*) and no upfront or ongoing fees. And if you’re looking for flexible options, this loan allows you to choose a weekly, fortnightly or monthly repayments schedule and also comes with free extra repayments and a free redraw facility. Bear in mind though, Athena’s Variable Home Loan is only available for refinancers in a capital or major regional city.

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UBank UHomeLoan - Discount Offer for Investor
  • 3.74% variable rate (3.74% comparison rate*)

  • Free redraws and extra repayments

  • No fees

The UBank UHomeLoan Investor Extra Offer not only offers a 3.74% variable rate (3.74% comparison rate*) but also has no fees, you heard right no fees! But that’s not the only thing attractive about this loan, borrowers can also make free extra repayments and redraws when they make their minimum repayments on time. For investors, UBank’s UHomeLoan Investor Extra Offer has options for principal and interest and interest only repayments, just keep in mind interest rates will vary. 

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Well Home Loans Well Balanced
  • 2019 Mozo Experts Choice Award - Best Investor Home Loan

  • 3.34% variable rate (3.35% comparison rate*) from 29 July

  • Free extra repayments and redraw facility

The Well Home Loan offered by Well Balanced is an award-winning home loan taking home a whopping five 2019 Mozo Experts Choice Awards^, including Best Investor Home Loan. With a competitive 3.34% variable interest rate (3.35% comparison rate*) for investors from July 29 and a bunch of features like complimentary extra repayments and a free redraw facility, it’s no shock our experts agree they are among the best. Well Balanced also offer the option to open an offset account with this loan, just keep in mind it’ll cost you an additional $10 a month.

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Tic:Toc Variable Home Loan
  • 2019 Mozo Experts Choice Online Home Lender of the Year

  • 3.56% variable rate (3.57% comparison rate*)

  • No application or ongoing fees

With a competitive 3.56% variable rate (3.57% comparison rate*), no application or ongoing fees, and features like free extra repayments and redraw facility, the Tic:Toc Variable Home Loan could be the perfect option for an investor. Tic:Toc took out 2019 Mozo Experts Choice^ Online Home Lender of the Year as well as an award in the Best Investor Home Loan category. While there are no ongoing fees, if you opt to add an offset account to this loan you’ll be charged $10 a month and there is a $325 discharge fee.

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loans.com.au Smart Loan
  • 100% offset facility

  • Free extra repayments and redraw

  • No application or service fees

Do you have both a home and investment loan, or will have both? You can bundle them together with the Loans.com.au Smart Loan (Package) and receive a competitive reduced variable rate of 3.52% (3.54% comparison rate*). But it doesn’t stop there. Loans.com.au also offer a bunch of features like complimentary repayments, a free redraw facility and 100% offset. There are no application or service fees on this loan, just bear in mind there is are $220 valuation and $300 settlement fees at the beginning of your loan. 

*WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for the amount and term you entered.

**Initial monthly repayment figures are estimates only, based on the advertised rate, and a loan of $500,000 repaid over 25 years. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^Find out more about the 2019 Mozo Experts Choice Awards for Home Loans 

RELATED ARTICLE: 5 golden rules for buying your first investment property 

Need a bit more help figuring out which investment loan will suit you? Head over to our home loan hub or have a read of our useful guides and tips.

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