Photo by Steve Doig on Unsplash
Online lender loans.com.au has launched a new sub-2.00% p.a. home loan, this time for investors.
The Smart Booster Investor Bundle now comes with a discounted 1.99% p.a. interest rate (2.71% p.a comparison rate*) for the first year on interest-only repayments, before reverting to a higher ongoing rate of 2.74% p.a.
This isn't the first time loans.com.au has introduced a home loan under the 2% benchmark, after doing so in late July with the 1.99% p.a. Smart Booster Discounted Variable Home Loan (2.57% p.a. comparison rate*), which was also an introductory rate.
However, it is the first time it has done so with an investment product, and according to Savings.com.au's market research, is also the only investment home loan rate under 2.00% p.a.
Buying an investment property or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for investors.
Lender | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Variable | More details | ||||||||||||
| FEATUREDGREAT INTEREST RATE | Smart Booster Investor Bundle (Principal and Interest)
| ||||||||||||
Smart Booster Investor Bundle (Principal and Interest)
| |||||||||||||
| Variable | More details | ||||||||||||
| GET APPROVED FASTER WITH A DIGITAL APPLICATION | Neat Variable Investment Loan (Principal and Interest) (LVR < 60%)
| ||||||||||||
Neat Variable Investment Loan (Principal and Interest) (LVR < 60%)
| |||||||||||||
| Variable | More details | ||||||||||||
| BUNDLE YOUR HOME LOAN AND YOUR INVESTMENT LOAN FOR MORE SAVINGS | Yard Investor Bundle Loan (Bundled with Home Loan)
| ||||||||||||
Yard Investor Bundle Loan (Bundled with Home Loan)
| |||||||||||||
| Variable | More details | ||||||||||||
| 100% FULL OFFSET ACCOUNT | Ocean Investment (Amounts < $1m, LVR < 60%)
| ||||||||||||
Ocean Investment (Amounts < $1m, LVR < 60%)
| |||||||||||||
- Option to add an offset for 0.10%
- No monthly or ongoing fees
- Unlimited redraws
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 be 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. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of June 28, 2022. View disclaimer.
According to loans.com.au Managing Director Marie Mortimer, this new interest rate is the lowest investment offer in Australia right now.
“After seeing great success with our 1.99% owner-occupied offer, we are excited to bring a similar offer to investors," Ms Mortimer said.
“Investors who are considering switching to a lower rate for their investment properties and their own home should take the opportunity to reassess their loan provider and potentially refinance."
To be eligible for this offer, you must also get an owner-occupied loan from loans.com.au, with owner-occupied rates starting at 1.99% p.a.
It's available for borrowers with a loan-to-value ratio (LVR) of 80% or less borrowing between $50,000 and $1 million.
It has no application or exit fees, but does charge a $300 settlement fee and a valuation fee up to $220.
Other home loans below 2% p.a. at the moment include the likes of:
- The Bank of Us 1-3 year fixed FlexiDiscount loan (owner-occupiers): 1.99% p.a (comparison rates* range from 2.73% p.a to 2.88% p.a)
- The HomeStar Finance 'Star Classic' loan for owner-occupiers: 1.98% p.a. (2.51% p.a comparison rate*)
- The Bank First three-year fixed home loan rate: 1.99% p.a. (3.10% p.a. comparison rate*)
- The People's Choice one-year fixed special offer for first-home buyers: 1.99% p.a. (3.91% p.a. comparison rate*)
Disclaimers
The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. 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. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.
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