Property investment slumps in 2023, says ASX
Despite residential property investment remaining the second most popular asset for Australians in 2023, there has been a downward trend in the number of people investing in housing, according to the latest Australian Securities Exchange (ASX) report .
According to ASX data from 2020, the total share of Australian investors with a stake in a residential investment property was 39%. But in 2023, after numerous cash rate hikes from the Reserve Bank of Australia (RBA) to preemptively quash inflation, that number has slipped down to 35%.
Property investment then and now
In 2020, the cash rate hovered around lows of between 0.10% to 0.75% p.a. This meant investment property loan rates were much lower and more attractive than in 2023.
The current cash rate is certainly much higher at 4.10% p.a.
The ASX’s survey of investor goals showed that the portion of Australians who aim to purchase an investment property in the next three years is at a similar level for both current investors and ‘intending’ investors, at 16% and 15% respectively.
But with home loan interest rates being what they are right now, are prospective property investors being a little too optimistic about their goal? Not necessarily.
Compare investment home loan rates to find a lower rate
While the average variable investment property loan in Mozo’s database for September 2020 was 3.78% p.a. (P&I @ $400,000 – 80% LVR), the story in 2023 is a little different.
In September 2023 the average variable rate in our database sits at 6.96% p.a.† – at almost 7% p.a. it’s a far cry from the sub-4% figures up for grabs during the pandemic.
But it’s not all bad news for property investors.
In the Mozo database currently there are three lenders offering a variable rate investment property loan below 6% p.a., and over 70 investment loan products with rates below the average of 6.96% p.a.
Some of the lowest variable rates in our database come from lenders like Bank Australia, Hume Bank, and Pacific Mortgage Group, whose variable rates sit around 5.89% p.a.‡ (comparison rates may vary*). At 5.89% p.a., a $500,000 investment property over 30 years would result in estimated monthly repayments of around $2,962.
In contrast, a loan for the same amount, paying an average variable investment loan rate of 6.96% p.a., would result in repayments of $3,313 per month – $351 more out of pocket and nothing to turn your nose up at.
There are still plenty of rates in the Mozo database on offer that are lower than the average, which is precisely why doing an investment home loan comparison before you settle on just any old lender can pay off.
Mozo compares over 90 providers to help kickstart your investment journey to finding the best home loan for you. Take a look at some of the featured products below to get started.
Investment property loan comparisons on Mozo
Promoted
-
Unloan Variable
- Investment
- LVR <80%
- Interest rate
-
6.29
%
p.a.
Variable
- Comparison rate
-
6.20
%
p.a.
- Initial monthly repayment
-
$3,092
Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for investors. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.
- Interest rate
-
6.29
%
p.a.
Variable
- Comparison rate
-
6.20
%
p.a.
- Upfront fees
-
$0
- Ongoing fees
-
$0.00
- Discharge fee
-
$0.00
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Offset account
-
no
- Maximum loan to value ratio
- 80.00%
- Minimum borrowing amount
- $10,000
- Maximum borrowing amount
- $10,000,000
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Investor
- Repayment options
- Weekly, Fortnightly, Monthly
- Special offers
- -
Read our Mozo Review to learn more about this Unloan Unloan Variable
Go to site -
Neat Home Loan
- Investor
- Principal & Interest
- LVR <60%
- Interest rate
-
6.24
%
p.a.
Variable
- Comparison rate
-
6.26
%
p.a.
- Initial monthly repayment
-
$3,075
- Interest rate
-
6.24
%
p.a.
Variable
- Comparison rate
-
6.26
%
p.a.
- Upfront fees
-
$250
- Ongoing fees
-
$0.00
- Discharge fee
-
$300.00
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Offset account
-
no
- Maximum loan to value ratio
- 60.00%
- Minimum borrowing amount
- $80,000
- Maximum borrowing amount
- $5,000,000
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Investor
- Repayment options
- Weekly, Fortnightly, Monthly
- Special offers
- -
Read our Mozo Review to learn more about this ubank Neat Home Loan
Go to site
-
3 Year Fixed Rate Home Loan Special Offer
- Investment
- Principle & Interest
- LVR <80%
- Interest rate
-
5.59
%
p.a.
Fixed 3 years
- Comparison rate
-
6.99
%
p.a.
- Initial monthly repayment
-
$2,867
Get repayment certainty with Police Credit Union’s 3 Year Fixed Rate Investor Home Loan Special Offer. No annual or monthly fees to pay. Make additional repayments up to $20,000 per year. Available for first home buyers and refinancers. Reverts to the Discount Variable Home Loan interest rate after the fixed rate period. Member owned, but applications open to all Australians.
- Interest rate
-
5.59
%
p.a.
Fixed 3 years
- Comparison rate
-
6.99
%
p.a.
- Upfront fees
-
$562
- Ongoing fees
-
$0.00
- Discharge fee
-
$150.00
- Extra repayments
-
yes - up to $20,000 p.a.
- Redraw facility
-
yes - free
- Offset account
-
no
- Maximum loan to value ratio
- 80.00%
- Minimum borrowing amount
- $250,000
- Maximum borrowing amount
- -
- Type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Investor
- Repayment options
- Weekly, Fortnightly, Monthly
- Special offers
- -
Read our Mozo Review to learn more about this Police Credit Union 3 Year Fixed Rate Home Loan Special Offer
Go to site -
Basic Home Loan
- Fixed
- Investment
- Principal & Interest
- LVR <70%
- Interest rate
-
5.79
%
p.a.
Fixed 3 years
- Comparison rate
-
6.21
%
p.a.
- Initial monthly repayment
-
$2,931
Lock in repayments from 1 to 5 years. Competitive rate tiers depending on your LVR. No application or annual fee. Fast, secure online application.
- Interest rate
-
5.79
%
p.a.
Fixed 3 years
- Comparison rate
-
6.21
%
p.a.
- Upfront fees
-
$350
- Ongoing fees
-
$0.00
- Discharge fee
-
$400.00
- Extra repayments
-
yes - up to $10,000 p.a.
- Redraw facility
-
yes - free
- Offset account
-
no
- Maximum loan to value ratio
- 70.00%
- Minimum borrowing amount
- $150,000
- Maximum borrowing amount
- $10,000,000
- Type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Investor
- Repayment options
- Monthly
- Special offers
- -
Read our Mozo Review to learn more about this Macquarie Basic Home Loan
Go to site -
Offset Home Loan
- Fixed
- Investment
- Principal & Interest
- LVR <70%
- Interest rate
-
5.79
%
p.a.
Fixed 3 years
- Comparison rate
-
6.43
%
p.a.
- Initial monthly repayment
-
$2,931
- Interest rate
-
5.79
%
p.a.
Fixed 3 years
- Comparison rate
-
6.43
%
p.a.
- Upfront fees
-
$350
- Ongoing fees
-
$248.00 yearly
- Discharge fee
-
$400.00
- Extra repayments
-
yes - up to $10,000 p.a.
- Redraw facility
-
yes - free
- Offset account
-
yes
- Maximum loan to value ratio
- 70.00%
- Minimum borrowing amount
- $150,000
- Maximum borrowing amount
- $10,000,000
- Type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Investor
- Repayment options
- Monthly
- Special offers
- -
Read our Mozo Review to learn more about this Macquarie Offset Home Loan
Go to site -
Flex Home Loan
- Fixed
- Investor
- Principal & Interest
- LVR <60%
- Interest rate
-
5.99
%
p.a.
Fixed 5 years
- Comparison rate
-
6.37
%
p.a.
- Initial monthly repayment
-
$2,995
- Interest rate
-
5.99
%
p.a.
Fixed 5 years
- Comparison rate
-
6.37
%
p.a.
- Upfront fees
-
$250
- Ongoing fees
-
$250.00 yearly
- Discharge fee
-
$300.00
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Offset account
-
yes
- Maximum loan to value ratio
- 60.00%
- Minimum borrowing amount
- -
- Maximum borrowing amount
- -
- Type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Investor
- Repayment options
- Weekly, Fortnightly, Monthly
- Special offers
- -
Read our Mozo Review to learn more about this ubank Flex Home Loan
Go to site -
Neat Home Loan
- Investor
- Principal & Interest
- LVR <60%
- Interest rate
-
6.24
%
p.a.
Variable
- Comparison rate
-
6.26
%
p.a.
- Initial monthly repayment
-
$3,075
- Interest rate
-
6.24
%
p.a.
Variable
- Comparison rate
-
6.26
%
p.a.
- Upfront fees
-
$250
- Ongoing fees
-
$0.00
- Discharge fee
-
$300.00
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Offset account
-
no
- Maximum loan to value ratio
- 60.00%
- Minimum borrowing amount
- $80,000
- Maximum borrowing amount
- $5,000,000
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Investor
- Repayment options
- Weekly, Fortnightly, Monthly
- Special offers
- -
Read our Mozo Review to learn more about this ubank Neat Home Loan
Go to site -
Simple Home Loan Variable
- Investor
- Principal and Interest
- LVR<60%
- Interest rate
-
6.24
%
p.a.
Variable
- Comparison rate
-
6.27
%
p.a.
- Initial monthly repayment
-
$3,075
Enjoy a low variable rate with no application, ongoing or monthly fees to pay. Access your money via internet banking at any time with free redraws. Make additional repayments at any time. Available for owner occupied, investment and interest only repayments.
- Interest rate
-
6.24
%
p.a.
Variable
- Comparison rate
-
6.27
%
p.a.
- Upfront fees
-
$400
- Ongoing fees
-
$0.00
- Discharge fee
-
$175.00
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Offset account
-
no
- Maximum loan to value ratio
- 60.00%
- Minimum borrowing amount
- $150,000
- Maximum borrowing amount
- $3,500,000
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Investor
- Repayment options
- Weekly, Fortnightly, Monthly
- Special offers
- -
Read our Mozo Review to learn more about this First Option Bank Simple Home Loan Variable
Go to site -
Flex Home Loan
- Investor
- Principal & Interest
- LVR <60%
- Interest rate
-
6.24
%
p.a.
Variable
- Comparison rate
-
6.48
%
p.a.
- Initial monthly repayment
-
$3,075
- Interest rate
-
6.24
%
p.a.
Variable
- Comparison rate
-
6.48
%
p.a.
- Upfront fees
-
$250
- Ongoing fees
-
$250.00 yearly
- Discharge fee
-
$300.00
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Offset account
-
yes
- Maximum loan to value ratio
- 60.00%
- Minimum borrowing amount
- -
- Maximum borrowing amount
- -
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Investor
- Repayment options
- Weekly, Fortnightly, Monthly
- Special offers
- -
Read our Mozo Review to learn more about this ubank Flex Home Loan
Go to site -
Unloan Variable
- Investment
- LVR <80%
- Interest rate
-
6.29
%
p.a.
Variable
- Comparison rate
-
6.20
%
p.a.
- Initial monthly repayment
-
$3,092
Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for investors. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.
- Interest rate
-
6.29
%
p.a.
Variable
- Comparison rate
-
6.20
%
p.a.
- Upfront fees
-
$0
- Ongoing fees
-
$0.00
- Discharge fee
-
$0.00
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Offset account
-
no
- Maximum loan to value ratio
- 80.00%
- Minimum borrowing amount
- $10,000
- Maximum borrowing amount
- $10,000,000
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Investor
- Repayment options
- Weekly, Fortnightly, Monthly
- Special offers
- -
Read our Mozo Review to learn more about this Unloan Unloan Variable
Go to site -
Basic Home Loan
- Investment
- LVR<60%
- Principal & Interest
- Interest rate
-
6.34
%
p.a.
Variable
- Comparison rate
-
6.36
%
p.a.
- Initial monthly repayment
-
$3,108
No annual or application fees. Competitive rate tiers based on your LVR as well as interest only and split repayment options. Fast application and turnaround process. Secure online application.
- Interest rate
-
6.34
%
p.a.
Variable
- Comparison rate
-
6.36
%
p.a.
- Upfront fees
-
$350
- Ongoing fees
-
$0.00
- Discharge fee
-
$400.00
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Offset account
-
no
- Maximum loan to value ratio
- 60.00%
- Minimum borrowing amount
- $150,000
- Maximum borrowing amount
- $10,000,000
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Investor
- Repayment options
- Monthly
- Special offers
- -
Read our Mozo Review to learn more about this Macquarie Basic Home Loan
Go to site -
Offset Home Loan
- Investment
- LVR<60%
- Principal & Interest
- Interest rate
-
6.34
%
p.a.
Variable
- Comparison rate
-
6.59
%
p.a.
- Initial monthly repayment
-
$3,108
Up to 10 offsets. Competitive rate tiers and interest only repayment option. No application fee. Split loan option. Fast, secure online application. $248 annual fee.
- Interest rate
-
6.34
%
p.a.
Variable
- Comparison rate
-
6.59
%
p.a.
- Upfront fees
-
$350
- Ongoing fees
-
$248.00 yearly
- Discharge fee
-
$400.00
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Offset account
-
yes
- Maximum loan to value ratio
- 60.00%
- Minimum borrowing amount
- $150,000
- Maximum borrowing amount
- $10,000,000
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Investor
- Repayment options
- Monthly
- Special offers
- -
Read our Mozo Review to learn more about this Macquarie Offset Home Loan
Go to site -
SMSF Home Loan
- LVR <70%
- Interest rate
-
6.99
%
p.a.
Variable
- Comparison rate
-
7.00
%
p.a.
- Initial monthly repayment
-
$3,323
Enjoy a competitive rate on your SMSF home loan with Loans.com.au. Available for refinancers only. No application fee and no settlement fee. No monthly, annual or ongoing fees. Unlimited extra repayments. Online access via Smart Money App. 30% deposit required.
- Interest rate
-
6.99
%
p.a.
Variable
- Comparison rate
-
7.00
%
p.a.
- Upfront fees
-
$720
- Ongoing fees
-
$0.00
- Discharge fee
-
$0.00
- Extra repayments
-
yes - free
- Redraw facility
-
no
- Offset account
-
no
- Maximum loan to value ratio
- 70.00%
- Minimum borrowing amount
- $50,000
- Maximum borrowing amount
- $2,000,000
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Investor
- Repayment options
- Weekly, Fortnightly, Monthly
- Special offers
- -
Read our Mozo Review to learn more about this loans.com.au SMSF Home Loan
Go to site -
SMSF Home Loan
- LVR <80%
- Interest rate
-
7.49
%
p.a.
Variable
- Comparison rate
-
7.50
%
p.a.
- Initial monthly repayment
-
$3,493
Enjoy a competitive rate on your SMSF home loan with Loans.com.au. Available for purchase and refinance. No application fee and no settlement fee. No monthly, annual or ongoing fees. Unlimited extra repayments. Online access via Smart Money App. 20% deposit required.
- Interest rate
-
7.49
%
p.a.
Variable
- Comparison rate
-
7.50
%
p.a.
- Upfront fees
-
$720
- Ongoing fees
-
$0.00
- Discharge fee
-
$0.00
- Extra repayments
-
yes - free
- Redraw facility
-
no
- Offset account
-
no
- Maximum loan to value ratio
- 80.00%
- Minimum borrowing amount
- $50,000
- Maximum borrowing amount
- $1,500,000
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Investor
- Repayment options
- Weekly, Fortnightly, Monthly
- Special offers
- -
Read our Mozo Review to learn more about this loans.com.au SMSF Home Loan
Go to site
Want to speak to someone about refinancing?
Our partner Lendi can help with that. All they need is a few details to get started.
Your selected home loans
† Based on a variable rate investor home loan on the Mozo database, on a loan of $400,000, paying principal & interest, LVR <80%, as at 5 September 2023.
‡ Based on a variable rate investor home loan on the Mozo database, paying principal & interest on a $500,000 investor home loan, LVR <80% over a 30 year loan term, as at 5 September 2023.
* 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 $150,000 over 25 years.
** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. 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.
^See information about the Mozo Experts Choice Home Loan Awards
Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.
While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.