The first sub-2% p.a. home loan for investors has arrived

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on August 24, 2020
The first sub-2% p.a. home loan for investors has arrived

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
Advertised rate Comparison rate* Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval

VariableMore details
REFINANCE IN MINUTES, NOT WEEKS

Variable Investor, Principal and Interest (Refinance Only)(LVR <75%)

  • No application or ongoing fees.
  • 100% free offset sub account.
  • Fast online application, approval in minutes not weeks.
  • Mobile app, Visa debit card, Apple and Google Pay
  • Refinance loans and variable rates only.
REFINANCE IN MINUTES, NOT WEEKS

Variable Investor, Principal and Interest (Refinance Only)(LVR <75%)

  • No application or ongoing fees.
  • 100% free offset sub account.
  • Fast online application, approval in minutes not weeks.
  • Mobile app, Visa debit card, Apple and Google Pay
  • Refinance loans and variable rates only.
VariableMore details
AN EASY ONLINE APPLICATION
  • No application fee
  • Unlimited additional repayments
  • Unlimited free redraws
AN EASY ONLINE APPLICATION
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

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. *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 January 26, 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:


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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William Jolly joined Savings.com.au as a Financial Journalist in 2018, after spending two years at financial research firm Canstar. In William's articles, you're likely to find complex financial topics and products broken down into everyday language. He is deeply passionate about improving the financial literacy of Australians and providing them with resources on how to save money in their everyday lives.

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