Compare Home Loans

Lender
Advertised rate Comparison rate Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval
VariableMore details
GET A FULL OFFSET ACCOUNT FOR NO EXTRA COST

Low Rate Home Loan - Prime (Principal and Interest) (Investment) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
GET A FULL OFFSET ACCOUNT FOR NO EXTRA COST

Low Rate Home Loan - Prime (Principal and Interest) (Investment) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
VariableMore details
AN EASY ONLINE APPLICATION

Yard Investment Loan (Principal and Interest) (LVR < 80%)

  • No application fee
  • Unlimited additional repayments
  • Unlimited free redraws
AN EASY ONLINE APPLICATION

Yard Investment Loan (Principal and Interest) (LVR < 80%)

  • No application fee
  • Unlimited additional repayments
  • Unlimited free redraws
VariableMore details
WIN YOUR HOME LOAN INTEREST FREE

Nano Home Loans Variable Investor, Principal and Interest (Refinance Only)

  • WIN your home loan interest free and save up to $1.1 million. Refinance by 29 October. T&Cs apply.
  • Refinance Only. Fast online application, refinance in minutes, not weeks.
  • No Nano fees, Free 100% offset sub account. Mobile app. Visa debit card & instant payments.
WIN YOUR HOME LOAN INTEREST FREE

Nano Home Loans Variable Investor, Principal and Interest (Refinance Only)

  • WIN your home loan interest free and save up to $1.1 million. Refinance by 29 October. T&Cs apply.
  • Refinance Only. Fast online application, refinance in minutes, not weeks.
  • No Nano fees, Free 100% offset sub account. Mobile app. Visa debit card & instant payments.
VariableMore details
FREE REDRAW FACILITY

Smart Investor Home Loan (Principal and Interest) (LVR < 80%)

  • Option to add an offset for 0.10%
  • Fast turnaround times, can meet 30 day settlement
  • No on-going or monthly fees
FREE REDRAW FACILITY

Smart Investor Home Loan (Principal and Interest) (LVR < 80%)

  • Option to add an offset for 0.10%
  • Fast turnaround times, can meet 30 day settlement
  • No on-going or monthly fees
FixedMore details
FREE REDRAW FACILITY

Fixed Rate Investment Loan (Principal and Interest) 3 Years

FREE REDRAW FACILITY
VariableMore details
FAST TURNAROUND TIMES AND FLEXIBLE LOAN OPTIONS

Basic Investment Loan (Principal and Interest) (LVR 60%-70%)

FAST TURNAROUND TIMES AND FLEXIBLE LOAN OPTIONS
VariableMore details

Discount Variable Investment Loan (Principal and Interest) (LVR < 80%)

VariableMore details

Basic Investment Loan (Principal and Interest) (LVR < 60%)

FixedMore details

Total Home Loan Package Investment Loan Fixed 1 Year

VariableMore details
FAST TURNAROUND TIMES AND FLEXIBLE LOAN OPTIONS

Basic Investment Loan (Principal and Interest) (LVR < 60%)

FAST TURNAROUND TIMES AND FLEXIBLE LOAN OPTIONS
VariableMore details

Basic Variable Investor Principal & Interest (LVR ≤ 80%)

VariableMore details
  • For a chance to win $100K towards your home loan, apply with Athena before Oct 31 & be approved by Dec 15
  • The more you pay down your loan, the more we’ll lower your rate
  • Athena charges zero fees
FixedMore details

Premium Package Investment Loan Fixed (Principal and Interest) 3 Years (LVR < 60%)

FixedMore details

Fixed Rate Investment Loan (Principal and Interest) (NSW and ACT only) 3 Years

FixedMore details

Ultimate Fixed Investment Loan (Principal and Interest) (NSW, ACT & QLD only) 3 Years

FixedMore details

Package Fixed Investment Loan (Principal and Interest) 2 Years (LVR < 80%)

FixedMore details

Fixed Rate Investment Loan 2 Years (LVR < 80%)

FixedMore details

Your Way Plus Fixed Investment Loan 3 year (Principal and Interest) (LVR < 60%)

FixedMore details

Basic Investment Loan Fixed (Principal and Interest) 2 Years (LVR 60%-70%)

VariableMore details
NO UPFRONT OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Investment) (LVR < 80%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Unlimited extra repayments
NO UPFRONT OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Investment) (LVR < 80%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Unlimited extra repayments
FixedMore details

Tailored Investment Loan Fixed (Principal and Interest) 1 Year

FixedMore details

Fixed Rate Investment Loan (Principal and Interest) 1 Year (LVR > 80%)

FixedMore details

Fixed Rate Investment Loan (Principal and Interest) 2 Years

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. Rates correct as of September 25, 2021. View disclaimer.

About investment home loans

Borrowing to invest in property is big business in Australia, with investment home loans making up around one-third of the value of all home loan commitments each month, according to ABS data.

An investment home loan is a home loan for people looking to buy a property with the intention of renting it out and profiting through a rise in the property’s value. Home loans for investment property are different from the home loans you might use to buy a house or unit to live in – those are known as ‘owner-occupier’ home loans. Compared to owner-occupier home loans, investment home loans often have higher interest rates and may have stricter eligibility requirements. But as with any major purchase, you can save by doing your research and shopping around for the best investment home loan rates.

How can you save money on an investment home loan?

There are basically five key ways you can save on an investment home loan:

Investment home loan interest rates

Investment home loans tend to come with higher interest rates – this is partly because property investors are generally considered to be riskier borrowers than owner-occupiers. It’s also because APRA (The Australian Prudential Regulation Authority) recently had a growth cap imposed on the amount of investment lending that ADIs (Authorised Deposit-taking Institutions) could conduct, however, this cap was lifted in July 2018.

But if you spend the time to do some research – and you should if you’re taking out a home loan – you’ll see that there are still home loans out there for investors with rates below 4%.

Loans.com.au’s home loan repayment calculator shows that the difference between a 4% and a 5% interest rate on a $500,000 home loan is over $300 per month and $100,000 over 30 years. That difference speaks for itself really.

Investment loan fees

Just like a regular home loan, investment loans can sting you with fees if you aren’t careful. These fees can be anything like:

  • Upfront fees (the fee charged for assessment and taking out the loan)
  • Ongoing fees (charged by lenders for continuing to provide the loan)
  • Exit, break and discharge fees (fees charged when the loan ends or when you switch to another lender)

So when comparing investment home loans, don’t just look at the advertised interest rate – consider the fees as well.

Keep in mind that upfront and ongoing fees are factored into a loan’s comparison rate, which every law-abiding lender must display beside the advertised rates of their products. So if you see a loan with a low advertised interest rate, but a relatively high comparison rate, it probably has high fees to make up for the lower interest rate.

Investment loan features

Home loan features such as offset accounts and redraw facilities can help borrowers save on their interest costs.

However, property investors may favour an offset account over a redraw facility because an offset account operates as a separate facility to the investment loan, unlike a redraw facility. This means that withdrawing funds from the offset account for personal (non-investment) use does not distort the loan’s purpose (investing), maintaining the tax-deductibility of the loan.

For example, using a redraw facility to withdraw $50,000 from a $500,000 investment home loan to renovate your owner-occupied home could result in the ATO deeming the investment loan to be only 90% tax-deductible. There is no risk of that with an offset account.

Home loans with offset accounts often have higher interest rates though, so borrowers should consider whether they’d actually utilise one.

Mortgage repayments

While monthly repayments might be the default option you’re given, making repayments fortnightly or even weekly can help you save on interest and pay off the loan earlier, so long as the value of these regular repayments are at least half (fortnightly) or a quarter (weekly) of your monthly repayments.

Tax benefits

The Australian Taxation Office (ATO) lists several investment expenses that investors can claim a tax deduction on, such as:

  • Interest paid on the loan
  • Home, contents and landlord insurance
  • Maintenance and management costs
  • Council rates and construction costs
  • Depreciation of the property’s value
  • Travel expenses to the property in order to carry out inspections or maintenance

You should speak to a registered tax agent about the tax implications of buying an investment property.

Looking for info on a specific type of home loan?

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Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:

  • The big four banks are: ANZ, CBA, NAB and Westpac
  • The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2020. They are (in descending order): Great Southern Bank, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
  • The larger non-bank lenders are those who (in 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.
  • If you click on a product link and you are referred to a Product or Service Provider’s web page, it is highly likely that a commercial relationship exists between that Product or Service Provider and Savings.com.au

Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site.

In the interests of full disclosure, Savings.com.au, Performance Drive and Loans.com.au are part of the Firstmac Group. To read about how Savings.com.au manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.

*Comparison rate is based on a loan of $150,000 over a term of 25 years. Please note the comparison rate only applies to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as redraw fees and costs savings, such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.