6 cheapest investor home loan deals September 2017
Build your property portfolio with one of September's cheapest investor home loans. Rates from 3.74%.
It’s a tough market for investors at the moment, particularly with many lenders winding back their investment portfolios and raising rates on loans.
But conditions may still be favourable for investing. In finder's recent RBA forecast, HIA's Shane Garrett noted that "There is no pressing need to move rates at this time," while QIC's Matthew Peter observed that "until the housing market shows sustained signs of slowing" rates would likely remain on hold.
Good home loan deals still abound for investors who put in the time to compare. We’ve rounded up the 6 cheapest investment loans available through finder.com.au to help you build your property portfolio.
To ensure these loans are helpful to the typical property investor we applied the following criteria. All the loans featured on this page are principal and interest investor loans with a max LVR of at least 80%. Also, all the loans on this page fit the following criteria:
- A minimum loan amount no greater than $350,000
- A maximum loan amount of more than $500,000
- Excludes line of credit, guarantor and construction loans
- Rates are correct as of 12 September 2017
Note that while these are cheapest investor loans according to interest rates and our own criteria, a low rate alone can't determine if a home loan is the best fit for you.
We've listed the loans in the table below. You can also scroll down to learn more about each of them individually.
|Reduce Home Loans Investor Rate Buster Variable||3.74%|
|UBank UHomeLoan Investor||4.09%|
|Loans.com.au Essentials Variable home loan||4.09%|
|State Custodians Low Rate Home Loan with Offset||4.09%|
|NAB Base Variable Rate Home Loan||4.65%|
|Bank Australia Basic Investment Loan||4.87%|
Reduce Home Loans Investor Rate Buster Variable
The Reduce Home Loans Investor Rate Buster Variable allows investors to borrow up to 80% of the value of the property they’re buying. It comes with an offset account, which can help you reduce the interest you pay. The maximum loan amount is $750,000, which can make this home loan perfect for buyers looking to get a foot in the door in the investment property market. Even better, if you stay with Reduce Home Loans for five years you could be eligible for a loyalty discount, bringing this low rate even lower.
- Interest rate: 3.74% (comparison rate: 3.74%)
UBank UHomeLoan Investor
This UBank investment home loan is eligible for the online lender’s Investor Extra Offer. This means investors on principal and interest payments can expect a discount off the lender’s already low standard variable rate. There are also no application or ongoing fees, and the loan comes with a free redraw facility so you can access extra funds when you need them. The UBank UHomeLoan Investor is also portable, so if you buy a new investment property your loan can move with you.
- Interest rate: 4.09% (comparison rate: 4.09%)
loans.com.au Essentials Variable (Investor)
The loans.com.au Essentials Variable home loan for investors offers loan amounts all the way up to $1 million, which opens up your investment options considerably. The loan gives you the flexibility to pay as much extra toward your home loan as you’d like, and offers a free redraw facility so you can access those extra repayments should you need them. Unlike many redraw facilities, there’s no minimum redraw amount for this home loan. You also have the option of splitting your home loan into fixed and variable rate portions.
- Interest rate: 4.09% (comparison rate: 4.11%)
State Custodians Low Rate Home Loan with Offset
If you keep your loan-to-value ratio (LVR) at 80% or below, this State Custodians investor home loan rewards you with an incredibly sharp rate. It also carries no ongoing or application fees. This is particularly impressive, considering it comes with a 100% offset account with a linked debit MasterCard that lets you access your extra repayments fee-free at any Westpac Group ATM.
- Interest rate: 4.09% (comparison rate: 4.12%)
This NAB investment home loan offers a low rate and the ability to borrow up to 90% LVR. The loan also offers the flexibility to borrow up to $10 million pending credit approval, and to make interest-only repayments for up to 5 years. Interest-only repayments may raise your rate, though. NAB is also currently offering up to 350,000 NAB Rewards points if you apply by December 31st and borrow at least $250,000. Terms and conditions apply, so check the NAB website for more details on the offer.
- Interest rate: 4.65% (comparison rate: 4.69%)
Bank Australia Basic Investment Loan
This no-frills home loan offers a low rate by eschewing some of the features you may not need. It does offer a redraw account and flexible repayments, and comes with no monthly fees.
- Interest rate: 4.87% (comparison rate: 4.91%)