Investment Property Home Loan Comparison

Are you an investor looking to grow your property portfolio? Then land yourself a standout home loan deal, with a low interest rate and great features to boot, by kicking off your mortgage comparison in the table below.


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How can I find a great investment loan interest rate?

If you’re ready to invest, chances are you’re going to want to do keep your costs as low as possible. That’s where Mozo can help! Using our handy investment loan comparison table below you’ll be able to compare a range of great investment property loan interest rates all in the one place.

To start, just plug the amount you want to borrow and the length of time and hit calculate repayments. You’ll then be able to see just how much you’ll need to make for your first monthly repayment. 

Are there low deposit investment home loans?

Yes! Whether you’re looking to add to your portfolio or are investing for the first time, there are a number of investment property loans with a low down payment of 10% or less.

Just bear in mind that following the introduction of tighter lending restrictions by APRA, some of the major banks have lowered the minimum LVR they will accept for investment loans. And as with many low deposit home loans you may be required to pay lenders mortgage insurance (LMI) if you fall short of a 20% deposit.  

Should I get an offset account with my property investment loan?

By stashing your savings in an offset account you’ll effectively reduce the balance of your mortgage and the amount of interest you’re paying. Sounds pretty good right? That’s why an offset account could be a handy to feature to have with your investment property loan, but make sure you weigh up its value against the extra fees you might need to pay for a home loan which includes one.           

How do I apply for an investment loan online?  

Applying for a property investment loan online is simple. Once you’ve weighed up rates, fees and other features and decided on the loan you think is right for you, just click the blue ‘Go to site’ button on the right hand side of the page and you’ll be taken to an online application form to fill out.

Investment home loan comparisons on Mozo - page last updated April 01, 2020

interest
rate
comparison
rate*
Initial monthly
repayment**

I want to borrow

years

  • 3.18% p.a.

    3.37% p.a.

      Compare
    Details
  • 2.88% p.a.

    2.94% p.a.

      Compare
    Details

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*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.

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What to look for in an investment home loan

Interest only repayments:

Opting for interest only repayments will see you paying much less than if you were repaying both the principal and the interest, plus you might be eligible for tax benefits.

Offset account:

This functions as an everyday bank account, with one key difference. It will be linked to your home loan, and any money you deposit will go towards offsetting the amount of interest you pay.

Line of credit facility:

If you’re thinking about renovating your home, an investment loan that comes with a line of credit could help. This works just like an overdraft account, allowing you to draw upon cash up to a set limit when needed.

Repayment holiday:

Chances are you’ll be relying on rental income to cover your repayments, but what do you do if you’re without a tenant for a period of time? An investment loan that lets you take repayment holidays could give you some breathing space.

More FAQs about investment loans

Are offset accounts important for investment loans?

Yes, once you’re signed up with an investment property loan, it’s a smart move to get your salary deposited into an offset account linked to your mortgage, rather than a bank account because you’ll reduce the amount of interest you pay.

Let’s go back to our scenario of investor Sarah. Once she is approved for her $500,000 investment home loan, if Sarah puts $30,000 worth of savings into a linked offset account, this will mean instead of being charged interest on the full $500,000, she would only accrue interest on $470,000. Once Sarah has saved up enough in her offset account, she can easily access the money to use it as her deposit for her next investment property, thus growing her investment portfolio.

What fees will I pay on an investment loan?

Just like any other home loan, there are some fees to watch out for when taking out an investment home loan. Here are the common charges:

Upfront fee: When you apply for an investment loan, the bank will have to run a credit check on you to see if you are a risky borrower. To cover this cost and any administration costs involved in assessing you for the investment property loan you may be charged a one off upfront fee anywhere between $0-$800.

Ongoing service fees: There may also be a small ongoing fee of around $10 that the lender charges for providing you with the loan.

Breakcost fees: Banned on variable rate loans back in 2011, breakcost fees can still be charged if you try to pay out a fixed rate loan early.

What documents will I need to apply for an investment home loan?

Each bank or financial lender will ask for different documentation when you apply for one of their investment loans, however generally they will require:

  • Identification: The provider will want to know who you are by obtaining a certified copy of documents like your passport, Australian driver’s licence, birth certificate, medicare and utility bills.
  • Income: They will want to determine whether you can comfortably service the investment home loan by seeing your latest PAYG Payment Summary from your employer, as well as your contract outlining your salary and a letter from your employer confirming the length of time you’ve held a position at the company.
  • Existing loans: If you have a credit card or personal loan you’re paying off, then the lender will usually ask for around 1-3 months worth of statements.
  • Genuine savings: You’ll also be asked to provide around 3 months worth of bank and savings account statements, so that they can see you are a diligent saver.

What are low doc home loans?

Often it can be hard for small business owners and sole traders to come up with the necessary paperwork like payslips or a letter from your employer for investment loans. So if you’re self employed or work under an ABN, you may need to apply for a home loan with more flexibility when it comes to documentation.

The solution is applying for a low doc home loan that allows you to have less documentation. But there’s a catch, usually the interest rate will be higher and you’ll also need to have a lower loan to value ratio of 60% (e.g 40% or more deposit).

Ready to kick off your investment property loans comparison? Scroll up to the top of this page to compare home loans in our investor table or punch in your numbers into our home loan comparison calculator to search our entire database.

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