The best (fixed rate) home loans for investors in 2017

Tuesday 23 May 2017

Article by Roisin Kelly-Goldsmith

While we’ve seen several home loan providers steadily lift interest rates over the last few months here at Mozo, the truth is that there are still bargains to be had in the investment loan department, especially when it comes to shorter term fixed rates.

best-investor-home-loans-fixed-rate

Mozo’s money experts have just announced the winner’s of this year’s Experts Choice Home Loan Awards and below is a roundup of the best value fixed rate mortgages currently available for investors…

*Data correct at the time of writing. Head over to Mozo’s investment loan hub for current rates.

1. NAB  - Tailored Home Loan (Choice Package)

Key features:

  • Fixed rates from 3.89% (5.03% comparison rate)
  • High maximum LVR of 95%
  • Fee free extra repayments (up to $20k during fixed rate period)

Why it won:

NAB’s Tailored Home Loan (Choice Package) boasts competitive fixed rates starting from 3.89% for 1 year. It’s available for LVRs of up to 95% and customers have the ability to make additional loan repayments. Add that to the fact that you can also choose to split your loan between a fixed and variable rate makes this big bank loan a competitive deal.

2. bcu - Fixed Rate Home Loan Special

Key features:

  • Fixed rates from 3.80% (4.83% comparison rate)
  • High maximum LVR of 95%
  • Choice of fixed rate term from 1 - 5 years

Why it won:

The Fixed Rate Home Loan Special by bcu offers low interest rates to investors from 3.80% for 1 year, which is quite generous considering the LVR is up to a whopping 95%. Other perks that come with this award winning loan include the scope for borrowers to select their fixed rate term (which can range from 1 - 5 years) and the added flexibility of a split interest rate option. Just keep in mind, you’ll need to budget for a $600 application fee and yearly service cost of $495 during the fixed rate term.

3. Greater Bank - Discount Ultimate Home Loan (Package)

Key features:

  • Fixed rates from 3.94% (4.76% comparison rate)
  • $0 application fee
  • Comes with a fee free credit card

Why it won:

Next up is Greater Bank’s Discount Ultimate Home Loan (Package) for investors, with interest rates starting at 3.94% for a 1 year fixed rate term. Depending on the package you opt for, your fixed rate term can last from 1 - 5 years. While the maximum LVR attached to this loan may not suit every property investor at 85%, those who do sign up can enjoy the freedom of making extra repayments (fees apply) and the free redraw facility. Greater’s also bundled a zero fee credit card and Everyday bank account into the Discount Ultimate Home Loan (Package). Need we say more?

4. ME - Flexible Home Loan (Package)

Key features:

  • Fixed rates from 4.29% (5.66% comparison rate)
  • Fee free extra repayments of up to $30k during fixed rate period
  • $0 application fee

Why it won:

ME’s Flexible Home Loan (Package) for investors takes the idea of flexibility to a new level, as you can make additional repayments of up to $30k without feeling the bite of fees. You don’t have to cough up hundreds of dollars for an application fee, plus you can choose to split your loan between fixed and variable rate. To be eligible for this loan, investors must have a home loan deposit of 10% or higher.

5. QT Mutual Bank - Fixed Rate (Choice Package)

Key features:

  • Fixed rates from 4.14% (comparison rates from 4.99%)
  • $0 application fee
  • Fee free extra repayments of up to $10k annually

Why it won:

Are you an investor who can afford to put down a 20% deposit for a home loan? Have a penchant for paying off your debts faster than required? Enter the Fixed Rate (Choice Package) loan by QT Mutual Bank, where you can make extra repayments of up to $10k per year fee free. There’s also a split interest rate option for those looking to benefit from potential rate cuts in the future and minimal fees to consider.

6. UBank - UHomeLoan (Fixed)

Key features:

  • Fixed rates from 3.99% (4.62% comparison rate)
  • $0 ongoing fees
  • Split rate option

Why it won:

UBank’s UHomeLoan for investors offers three fixed rate terms: 1, 3 and 5 years and has a maximum LVR of 80%. Whichever term you opt for, you’ll have the opportunity to make additional repayments of up $20k every year before any fees kick in. Just use this feature thoughtfully as you won’t have access to those funds through a redraw facility. Apart from the once off application fee of $395, there’s aren’t any ongoing fees.

7. Victoria Teachers Mutual Bank - Education Home Loan (Package)

Key features:

  • Fixed rates from 4.14% (4.60% comparison rate)
  • Borrow up to 85% LVR with no lenders mortgage insurance (Ts & Cs apply)
  • Visa Platinum Credit Card annual fee wiped

Why it won:

The Education Home Loan (Package) could just be this mutual bank’s best kept mortgage secret, as it offers a long list of benefits for investors. Whether you want to make up to $30k worth in additional repayments a year or split your interest rate between fixed and variable, this could be the home loan for you. Those perks combined with not being charged for lender’s mortgage insurance if you borrow up to 85% makes the loan worth considering even more.

8. Virgin Money - Reward Me Fixed Rate Home Loan

Key features:

  • Fixed rates from 4.34% (4.34% comparison rate)
  • Offset account available (1 year fixed rate term only)
  • Bonus Velocity Points

Why it won:

What’s not to like about an investor home loan that comes with bonus Velocity Points? For every $10k drawn up at settlement with a Reward Me Fixed Rate Home Loan, Virgin Money will give customers 2,000 Velocity Points until 14 June 2017. As for the mortgage itself, borrowers can make up to $10k worth in additional loan repayments, or even take advantage of an offset account with the one year fixed rate version. To top things off, the loan doesn’t even have an application fee however there’s a $10 monthly fee.

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