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.

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*)

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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. 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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