Westpac Fixed Rate Investment Property Loan Review | finder.com.au
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Westpac Fixed Rate Investment Property Loan

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Marc Terrano
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Invest in property and enjoy the security of knowing that your rate won't change for up to 10 years

When you choose the Westpac Fixed Rate Investment Property Loan for your investment property purchase, you have the ability to lock in fixed repayments for up to 10 years.

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Review by

Marc Terrano is a lead publisher and growth marketer at Finder. He has previously worked at Finder as a publisher for frequent flyer points and home loans, and as a writer, podcast host and content marketer. Marc has a Bachelor of Communications (Journalism) from the University of Technology Sydney. He’s passionate about creating honest and simple reviews and comparisons to help everyone get value for money.

Expert review

If you choose to lock in your fixed interest rate before the settlement of your loan with Westpac you will be charged a fee of 0.10% of your loan amount. This rate will then apply from the time you fill out the application until 90 days afterwards. This gives you the time you need to secure the property and settle the loan without missing out on a competitive interest rate.

When deciding on the terms of your fixed rate, you will have the option to choose a period anywhere between one to seven, nine, or even ten years.

About this loan

What are the features and benefits of the Westpac Fixed Rate Investment Property Loan?

  • Loan-to-Value Ratio (LVR). You can borrow up to 80% of the property's value without insurance, or 95% with Lender's Mortgage Insurance (LMI). Existing Westpac customers may borrow up to 97%.
  • Loan terms. You can have a loan term of up to 30 years to pay off this home loan.
  • Repayment types. You can apply to make interest-only repayments for up to 15 years with this fixed rate loan. You can also take advantage of interest-only payments in advance and get a discounted interest rate for paying it one year in advance. Extra repayments of up to $30,000 are also allowed, which can help you repay your loan sooner and save on interest.
  • Redraw. You can withdraw any extra funds you pay into your loan using the redraw facility. There is no cost to you if you redraw any excess funds from your loan. You're able to redraw up to $30,000 over the loan term.
  • Fixed rate terms. In addition to extended terms for a fixed rate loan, you have the option of selecting a new fixed rate term when your original term end.
  • Portability. You are allowed to bring your loan to a new home, but this comes with a fee of $300.
  • Rate lock. When you lock into a fixed rate at Westpac you can ensure your rate doesn't change in the time it takes to settle. This comes with a fee explained below, and lasts for 90 days from your loan application date.

What fees and charges come with this loan?

  • Redraw fee. There is no charge for accessing extra funds in your loan.
  • Repayment holiday fee. If you make enough extra repayments, you can take a break with no charge to you.
  • Rate lock fee. This is a fee of 0.10% of the loan amount, and is charged to lock in the advertised rate so you don't miss out on it during the time it takes your loan to settle.
  • Loan establishment fee. $600. There is a $0 fee charged upfront to start the loan process.
  • Account keeping fee. $8 per month, totalling $96 per year. This fee is charged to maintain your loan account each month.

How to apply

You will need to be able to meet certain conditions before applying for this loan with Westpac:

  • Driver's licence or equivalent identification. You will need to be able to produce a valid driver's license or another form of picture ID.
  • Contract. You should have a certified contract of sale.

Have the following documentation readily available to help you and the loan officer decide which loan options are right for you:

  • Liabilities. A complete listing of your monthly expenses. This should include loans and credit card balances.
  • Assets. A complete list of all of your assets including savings and investments.
  • Income. Your salary plus any other income such as rental.

This is a unique fixed rate investment property loan in that you have extended options for the fixed rate period. Consider those rates and the other loan features carefully when comparing this loan to other similar ones.

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