Westpac slashes variable investment home loan rates

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on September 28, 2021
Westpac slashes variable investment home loan rates

On Tuesday Westpac and subsidiaries St George, Bank of Melbourne, and BankSA cut interest rates on a couple of interest-only investment home loans.

For Westpac the cuts are a 30 basis point reduction off the old rates, while for subsidiaries it's 20 basis points.

Westpac's details are as follows:

  • Inv Flexi First Option 70% LVR: Down to 2.99% p.a. (3.00% p.a. comparison rate*)
  • Inv Flexi First Option 80% LVR: Down to 3.09% p.a. (3.10% p.a. comparison rate*)

Similar products' interest rates were cut across the subsidiaries, however individual interest rates could differ, with more details below.

These reductions are 'special offers' meaning they could be withdrawn at any time.

Cutting interest rates on interest-only loans has been emerging trend of late, with ING and Gateway Bank doing so earlier in September.

Westpac's latest rate changes follow various rate changes made to owner occupier loans at the end of August.

Interest-only payments apply for the life of the loan, which could be favoured by investors able to pay interest-only then pay off the loan with proceeds from the home sale, provided it increases in value.

St George changes

  • Investment Basic Variable IO 60%: 20 basis point cut to 2.74% p.a. (2.76% p.a. comparison rate*)
  • Investment Basic Variable IO 80%: 20 basis point cut to 2.79% p.a. (2.81% p.a. comparison rate*) 

Bank of Melbourne changes

  • Investment Basic Variable IO 60%: 20 basis point cut to 2.74% p.a. (2.76% p.a. comparison rate*)
  • Investment Basic Variable IO 80%: 20 basis point cut to 2.79% p.a. (2.81% p.a. comparison rate*) 

BankSA changes

  • Investment Basic Variable IO 80%: 20 basis point cut to 2.79% p.a. (2.81% p.a. comparison rate*) 

The home loan rates across the group are available for new lending and external refinances, but exclude internal refinancing from the group, which also includes RAMS.


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Lender

Variable
More details
GREAT INTEREST RATE
  • Option to add an offset for 0.10%
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GREAT INTEREST RATE

Smart Booster Investor Bundle (Principal and Interest)

  • Option to add an offset for 0.10%
  • No monthly or ongoing fees
  • Unlimited redraws
Variable
More details
GET APPROVED FASTER WITH A DIGITAL APPLICATION
  • Split Loan Option
  • Unlimited additional repayments
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GET APPROVED FASTER WITH A DIGITAL APPLICATION

Neat Variable Investment Loan (Principal and Interest) (LVR < 60%)

  • Split Loan Option
  • Unlimited additional repayments
  • Free redraw facility
Variable
More details
BUNDLE YOUR HOME LOAN AND YOUR INVESTMENT LOAN FOR MORE SAVINGS
  • Split Loan Option
  • Unlimited additional repayments
  • Free redraw facility
BUNDLE YOUR HOME LOAN AND YOUR INVESTMENT LOAN FOR MORE SAVINGS

Yard Investor Bundle Loan (Bundled with Home Loan)

  • Split Loan Option
  • Unlimited additional repayments
  • Free redraw facility
Variable
More details
100% FULL OFFSET ACCOUNT
  • Free redraw facility
  • Split account option
  • Unlimited extra repayments
100% FULL OFFSET ACCOUNT

Ocean Investment (Amounts < $1m, LVR < 60%)

  • Free redraw facility
  • Split account option
  • Unlimited extra repayments

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 May 29, 2022. View disclaimer.


Photo from Piqsels

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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Harrison is Savings.com.au's Assistant Editor. Prior to joining Savings in January 2020, he worked for some of Australia's largest comparison sites and media organisations. With a keen interest in the economy, housing policy, and personal finance, Harrison strives to deliver and edit news and guides that are engaging, thought-provoking, and simple to read.

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