Tic:Toc leads online lender charge on investor mortgage rates


Home loan rates for residential property investors have reached the lowest point they’ve been in years, and Australia’s online mortgage lenders are the providers at the forefront of the push towards sharper rates.

Since March 2020, when the Reserve Bank made consecutive cuts to the official cash rate, the average variable rate in the Mozo database for investors making principal and interest repayments has dropped by a considerable 47 basis points.

In fact, the current average investment loan rate of 3.63% is the lowest recorded in the Mozo database since tracking began over six years ago.

“Since RBA’s ‘corona cuts’ in March last year and various stimulus programs, there has been significant downward pressure on residential investor interest rates,” said Mozo Interest Rate Expert, Peter Marshall.

“It’s clear investors have been reaping the benefits of the Reserve Bank’s Term Funding Facility (TFF), the removal of the APRA cap on interest only loans, changes to serviceability ratios and increasing competition from online lenders.”

As the graph below demonstrates, investor rates are a far cry from where they were even just a few years ago.

Variable Rate Home Loans

“Four years ago investors were looking at average interest only rates of 5.12% and lenders were limited by the volume of loans they could issue under the APRA cap,” says Marshall.

“Although rental yields can come under pressure during the pandemic, capital gains have continued to remain strong. Today, investor rates are at record lows and property prices are up.”

Online lenders lead the pack

So we know what the average variable rates for investors are looking like at present, but the lowest rates on offer are a different story. 

Earlier this week we reported on the dominance of online lenders at the sharpest end of the variable rate market. But the same is true when it comes to investor rates, with online lenders holding the five lowest rates in our database at present.

Notably, Adelaide-based fintech Tic:Toc currently has the distinction of having the lowest variable rates (at 80% LVR) on offer to both owner occupiers and investors in the Mozo database with its Variable Home Loan offer.

Lowest investment variable rates^^

2.19% (2.20% comparison rate*)Tic:TocVariable Home Loan
2.29% (2.36% comparison rate*)Reduce Home LoansInvestor Rate Lovers Variable
2.32% (2.38% comparison rate*)Well Home LoansWell Balanced
2.34% (2.34% comparison rate*)Pacific Mortgage GroupStandard Variable
2.39% (2.41% comparison rate*)homeloans.com.auLow Rate

By comparison the average Big Four variable rate for an investor is currently 4.01% - a whopping 182 basis points above the Tic:Toc rate.

According to our home loan repayments calculator, on a $500,000 loan balance being paid off over 20 years the gap between those two rates equates to a difference of $458 in monthly repayments and $109,892 in extra interest paid over the life of the loan.

“With online lenders competing hard for investor loans, it pays to look beyond the Big Four and compare what’s on offer,” Marshall says.

RELATED: Property investors are taking on home loans at the highest level since 2015

Time to snag yourself a lower rate on your own loan? If you’re an investor you’ll want to check out some of the hot deals laid out in the table below, or to compare even more offers for all types of borrowers make sure that the Mozo home loan comparison table is your first destination.

^^Interest rates are based on an investor making principal and interest repayments on a $400,000 loan with an <80% LVR. Loans tracked in the Mozo database accurate as of 15 July, 2021. 

Compare investment home loans - last updated 13 August 2022

Search promoted home loans below or do a full Mozo database search . Advertiser disclosure
  • Green Home Loan

    Investor, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    3.89% p.a. variable
    4.31% p.a.

    Great low rate on investment loans when you package with your owner-occupied loan. Get a 7.0 star NatHERS rating or higher for up to 1.79% discount on your variable rate home loan. For homes less than 12 months old.

  • Unloan Variable

    Investment, Refinance Only

    interest rate
    comparison rate
    Initial monthly repayment
    3.44% p.a. variable
    3.36% p.a.

    For refinancers only. 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 in as little as 10 minutes.

  • PAYG Home Loan

    Owner Occupier, Principal & Interest, LVR<80%

    interest rate
    comparison rate
    Initial monthly repayment
    3.29% p.a. variable
    3.33% p.a.

    Low variable rate. Ideal for new home buyers or refinancers. Unlimited additional repayments. Unlimited free redraw. Application completely online. Optional 100% offset can be added for $120 p.a.. 20% deposit required.

  • Discounted Home Value Loan

    Investment, Principal & Interest, LVR <70%

    interest rate
    comparison rate
    Initial monthly repayment
    3.42% p.a. variable
    3.43% p.a.

    Competitive variable Investor rate. Unlimited extra repayments for free. Enjoy the flexibility to redraw additional payments at no charge. Receive $3,288 cashback when you refinance an existing home loan of $250,000. Must apply by 31 August 2022 and settle by 31 October 2022

  • PAYG Investor Loan

    Investment, Principal & Interest, LVR<80%

    interest rate
    comparison rate
    Initial monthly repayment
    3.64% p.a. variable
    3.68% p.a.

    Low variable rate. Ideal for investors buying or refinancing. Unlimited additional repayments. Unlimited free redraw. Application completely online. Optional 100% offset can be added for $120 p.a.. 20% deposit required.

  • Smart Home Loan

    Investor, Interest Only

    interest rate
    comparison rate
    Initial monthly repayment
    4.74% p.a. variable
    4.76% p.a.

    A low-rate home loan that could save you thousands. No application or ongoing fees. Unlimited additional repayments. Unlimited free redraws with no minimum redraw amount, Limited time only.


* 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, loan amount and term entered. 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

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