An investment property loan is a mortgage designed to finance the purchase of a property intended for rental income or resale for profit. These loans typically have higher interest rates than owner-occupier home loans due to the increased risk for lenders. Investment loan rates can vary widely, but many lenders offer competitive options tailored for investors.
In this page, we’ll cover the current lowest investment loan rates in our lender panel, compare fixed and variable options, and explore important factors like loan-to-value ratios (LVR) and offset accounts to help you make informed investment decisions
A Low Rate Can Boost Your Cash-flow
Think you can’t get a low interest rate on an investment loan? Think again!
There are still great rates available to investors but finding these gems is tough.
Most lenders simply don’t advertise their best rates but we’re a mortgage broker with access to nearly 40 lenders. We can help!
Property Investment Guide 101
Learn the ins & outs of investing in properties from an experienced property investor and founder of Home Loan Experts, Otto Dargan.
Check Out These Great Investment Loan Rates
Residentially Secured Investment Loan Rates
| Loan Category | Interest Rate | Comparison Rate | Contact Us |
|---|---|---|---|
| Variable | 6.14% | 6.15% | Apply |
| 1 year fixed | 5.89% | 8.22% | Apply |
| 2 years fixed | 5.59% | 7.93% | Apply |
| 3 years fixed | 5.59% | 7.71% | Apply |
| 5 years fixed | 5.69% | 7.36% | Apply |
Not only can you get a great interest rate, you may be able to borrow 95% of the purchase price on a residentially secured investment loan.
Commercially Secured Investment Loans
| Loan Category | Interest Rate | Contact Us |
|---|---|---|
| Variable | 6.94% | Apply |
| 1 year fixed | 6.34% | Apply |
| 2 years fixed | 6.19% | Apply |
| 3 years fixed | 6.09% | Apply |
| 5 years fixed | 6.19% | Apply |
SMSF Investment Loans
Residentially Secured SMSF Investment Loan Rates
| Loan Category | Interest Rate | Comparison Rate* | Contact Us |
|---|---|---|---|
| Variable | 6.99% | 7.59% | Apply |
| 1 year fixed | 7.79% | 8.39% | Apply |
| 2 years fixed | 7.49% | 8.09% | Apply |
| 3 years fixed | 7.39% | 7.99% | Apply |
| 5 years fixed | 7.54% | 8.14% | Apply |
Commercially Secured SMSF Investment Loans
| Loan Category | Interest Rate | Contact Us |
|---|---|---|
| Variable | 7.69% | Apply |
| 1 year fixed | 8.29% | Apply |
| 2 years fixed | 8.29% | Apply |
| 3 years fixed | 7.99% | Apply |
| 5 years fixed | 7.99% | Apply |
Please note that even if you find a great interest rate on an SMSF investment loan, most lenders will restrict your loan to 70% of the property value.
Our mortgage brokers specialise in SMSF loans and know lenders that can let you borrow up to 80% of the purchase price. You can call us on 1300 889 743 or complete our free online assessment form to check if you qualify.
Low-Doc Investment Loans
Low-Doc Investment Loan Rates
| Loan Category | Interest Rate | Comparison Rate* | Contact Us |
|---|---|---|---|
| Variable | 6.98% | 7.58% | Apply |
| 1 year fixed | 0.00% | 0.00% | Apply |
| 2 years fixed | 6.64% | 7.24% | Apply |
| 3 years fixed | 6.64% | 7.24% | Apply |
| 5 years fixed | 6.94% | 7.54% | Apply |
If you’re unable to provide normal income verification documents such as tax returns, financial statements or payslips, you can take out a low doc investment loan. However, you’ll have to pay slightly higher interest rates.
*WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Each comparison rate is calculated based on $150,000 over 25 years for a secured loan.
Please note that you can’t get a no doc investment loan to buy residential investment properties because it would then be regulated by the National Consumer Credit Protection (NCCP) Act.
How Do I Prepare Before Applying For An Investment Loan?
With the current tighter lending criteria, it’s important to prepare yourself before applying for an investment loan to boost your chances for loan approval.
Before you apply for a mortgage, make sure you can meet basic lending criteria such as:
- You have 5% – 10% in genuine savings. Typically, banks consider genuine savings as a deposit you’ve held or saved in a bank account for at least three months.
- Lenders may want to see equity in another property if you’re borrowing more than 90% of the purchase price.
- You must not have any bad credit records.
- Your credit score must be above average.
- Most lenders expect stable employment and a strong income.
You can also start preparing the documents required to prove your income such as tax returns and bank statements.
To learn more, you can check out how to prepare to apply for a loan.
Am I being overcharged?
Without even realising it, you may be paying a more in interest than you need to. Banks have different ways of increasing someone’s interest rates.
Some of their methods include moving the standard variable rate, providing a minimal rate discount and cancelling your discounts without notice if you aren’t able to meet lending criteria later on.
Even if you took out an investment loan just over two years ago, you may no longer be on a competitive rate.
By regularly reviewing your interest rates, you can identify whether or not you’re paying more than you need to. If you are, you can request a discount or refinance to another lender.
Can I Get A No Deposit Investment Loan?
Although there are ways to get a no deposit investment loan, it isn’t as simple as it was in the past.
You can still borrow up to 105% without a deposit with a guarantor mortgage. However, only a select few lenders in Australia will accept a guarantor for an investment loan.
In order to qualify, you’ll need to meet certain criteria such as:
- Your guarantor must own property in Australia which can be used as additional security for the mortgage.
- You must be buying only one investment property. However, there may be some exceptions to this.
- In most cases, you can’t qualify if you have excessive unsecured debts such as credit cards.
- In most cases, your guarantor must be working or be a self funded retiree.
Please note that for a better chance of approval on a no deposit investment loan, your property needs to be easy to sell. This means properties in remote locations or properties such as inner city units and studio apartments may not be accepted.
How Tough Is The Property Investment Loan Market At Present?
Under pressure from the regulators, lenders have collectively jacked up their rates on investor loans. The current trends such as tight rental market, falling property prices, increasing supply in some areas have affected the investment loan market.
Lender’s have stricter lending criteria. This is a result of the cap on the borrowing that was set by the Australian Prudential Regulation Authority (APRA).
Many lenders require investors to have larger deposits, only a handful of lenders would now lend 90% while even fewer lend 95% of the purchase price.
However, this doesn’t mean that it’s tough to get approved for an investment home loan. You can still find competitive investment loan rates if you know where to look.
Applying with the right lender is key to getting a great deal.
Where Can I Find The Best Investment Loan Rates?
Where can you find the best investment loan rates when the banks may not even publish them?
We specialise in getting tough loans approved and our mortgage brokers are always up to date with the best and most competitive investment loan rates.
Speak to us today on 1300 889 743 or fill in our free online assessment form and one of our credit specialists will contact you to discuss your loan needs.