Invest in property and enjoy the security of knowing that your rate won't change for up to 12 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 years. You can even set another fixed rate term when yours ends if you like the stability of a fixed repayment amount.
| Product Name | Westpac Fixed Rate Investment Property Loan |
|---|---|
| Interest Rate Type | Fixed |
| Comp Rate^ (p.a.) | |
| Maximum Loan Term | 30 years |
| Maximum LVR | 80% |
| Maximum Insured LVR | 95% |
| Mortgage Offset Account | No |
| Loan Redraw Facility | Yes |
| Loan Portable | Yes |
| Suitable for Investment | Yes |
| Extra Repayment | Yes |
| Available as equity loan/line of credit | No |
| Repayment Type | Principal & Interest and Interest Only Options |
| Application Fee | $600 |
|---|---|
| Lender's Legal Fee | $0 |
| Valuation Fee | $0 |
| Ongoing Fees | $8 monthly ($96 p.a.) |
| Settlement Fee | $0 |
| Discharge Fee | $350 |
Pros
- $0 Legal fee.
- Extra repayment are available.
- You can borrow up to 95% of the property's value.
Cons
- $600 application fee.
- There is $8 per month account fee.
- $350 discharge fee.
Things to consider about the Westpac Fixed Rate Investment Property Loan
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, ten or 12 years.
For small business owners, this loan is available as a low doc loan and if your business does not have audited accounts, Westpac will consider other criteria to help you be approved for the loan.
Features 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.
Fees
Fees you can avoid
- 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.
Fees you can’t avoid
- 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.
Know how much you want to borrow? Use our calculator to find out what your repayments will be
How to apply for the Westpac Fixed Rate Investment Property Loan
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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