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.
Smart Booster Investor Bundle
Product Features
- Discount variable for 1 year <=80% LVR
- No ongoing fees
- Redraw facility with $0 redraw fee
- Interest-only available
- Refi your existing OO loan to be eligible
Monthly repayments: $1,476
Advertised
Rate (p.a.)
1.99%
Comparison
Rate (p.a.)
2.71%
Product Features
- Discount variable for 1 year <=80% LVR
- No ongoing fees
- Redraw facility with $0 redraw fee
- Interest-only available
- Refi your existing OO loan to be eligible
Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) investment home loans with an LVR (loan-to-value) ratio of at least 80%. If products listed have an LVR <80%, they will be clearly identified in the product name along with the specific LVR. Monthly repayments were calculated based on the selected products’ advertised rates, applied to a $400,000 loan with a 30-year loan term.
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 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): Credit Union Australia, 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.
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