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December 2018’s cheapest investment home loans

Posted: 10 December 2018 2:11 pm News

A tough lending environment means it's essential investors compare their home loan options.

The RBA's decision to end the year without changing the official cash rate could portend a long period of inactivity from the Reserve Bank, according to 1300HomeLoan managing director John Kolenda.

"With no evidence of a significant improvement in the domestic economy, many forecasters expect the cash rate will remain on hold through 2019 and also the following year. That means a whole generation of mortgage holders could go an entire decade without seeing official rates rise, although they will have experienced out of cycle rate movements from lenders," Kolenda said.

RBA inactivity hasn't translated to an easy road for homebuyers. Out-of-cycle rate moves and tighter credit conditions have put the squeeze on property investors.

"Borrowers face a very challenging lending environment with banks toughening their lending criteria and conducting detailed examination of borrowers’ expenses and all forms of income used to service their repayments," Kolenda said.

The upside, Kolenda suggested, is that lenders are competing fiercely for borrowers' business. Property investors can still find sharp home loan deals.

We've scoured the Finder database to find December's cheapest investment loans. To ensure these loans would be suited to the average investor, we applied the following criteria:

  • All loans have a minimum loan amount of $200,000 or less and a maximum loan amount of $500,000 or higher.
  • All seven mortgages have maximum loan to value ratios of 80%, requiring a 20% deposit.
  • We've also excluded lines of credit and construction loans.
  • All product information is correct as of 10 December 2018.

You can find our cheapest loans in the table below. To learn more about investing strategies, read our in-depth guide.

Compare December's cheapest investor loans

Data indicated here is updated regularly
$
Loan purpose
Offset account
Loan type
Repayment type
Your filter criteria do not match any product
Name Product Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment Short Description
UBank UHomeLoan Variable Rate - Discount Offer for Investor Variable P&I Rate
2.89%
2.89%
$0
$0 p.a.
80%
Get a discounted, low-fee investor loan from a convenient online lender. 20% deposit required.
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Credit services for Aussie Select, Aussie Activate and Aussie Elevate products are provided by AHL Investments Pty Ltd ACN 105 265 861 (“Aussie”) and its appointed credit representatives, Australian Credit Licence 246786. Credit for Aussie Select products is provided by Residential Mortgage Group Pty Ltd ACN 152 378 133, Australian Credit Licence 414133 (“RMG”). RMG is a wholly-owned subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL and Australian Credit Licence 234945. Credit for Aussie Activate products is provided by Pepper Finance Corporation Limited ACN 094 317 647 (“Pepper”). Pepper Group Limited ACN 094 317 665, Australian Credit Licence 286655 acts on behalf of Pepper. Credit services for Aussie Elevate products are provided by AHL Investments Pty Ltd ACN 105 265 861 Australian Credit Licence 246786 (“Aussie”) and its appointed credit representatives. Aussie is a trade mark of AHL Investments Pty Ltd ABN 27 105 265 861. Credit and any applicable offset accounts for Aussie Elevate are issued by Bendigo and Adelaide Bank Limited ABN 11 068 049 178 AFSL / Australian Credit Licence 237879.

Aussie is a trade mark of AHL Investments Pty Ltd. Aussie is a subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124. ©2020 AHL Investments Pty Ltd ABN 27 105 265 861 Australian Credit Licence 246786.

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*Our cheapest investment home loans round-up is a monthly article that features the cheapest loans in finder.com.au's database. The rates and other information in this page are correct at the time of publication and are subject to change. There may be cheaper loans on the market than the ones listed here. The home loans in the table above were taken from finder.com.au's database on 10 December 2018.

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