Banks are cutting rates to lure property investors

A new round of interest rate cuts is igniting the property investor mortgage market. The latest official Australian Bureau of Statistics housing finance data shows the investor home loan market is booming at the moment.

The value of new investment home loans jumped up 4.6 per cent in September, 2016. The investor loan market has been growing strongly since May 2016 while owner-occupier loan sales remain flat.

The average Australian home loan (in September 2016) was $367,600, up $4,000 in one month.

Which lenders are cutting interest rates for property investors?

In the last month, at least five lenders have cut interest rates on their variable home loans for property investors. Including:

Bank of Sydney has cut its investor rate on its Standard Variable Home loan. This loan has a 5.64 per cent headline rate (comparison rate 5.82 per cent).

Auswide Bank has a range of loan options for investors and has recently cut rates to attract new business. The Auswide Bank Home Loan Plus – INVESTMENT has a headline rate of 5.75 per cent (comparison rate 5.90 per cent).

IMB Bank has five home loan options for investors with IMB’s Standard Variable Home Loan for Investors now charging 5.31 per cent (comparison rate 5.36 per cent)

ING Direct’s Mortgage Simplifier home loan for investors is charging 4.14 per cent variable (comparison rate 4.16 per cent) on LVRs of 80 per cent or less.

Suncorp’s Back to Basics Investment loan has a variable rate of 5.09 per cent and a comparison rate of 5.10 per cent.

What is the lowest home loan rate for investors in Australia?

New rules mean that investor home loans are usually priced slightly above owner occupier loan rates. The lowest variable home loan rate now in the market for investors is 3.69 per cent from the Homeloans Ultra Plus loan.’s Purchase Essentials Loan is also charging 3.69 per cent.

The lowest 12 month fixed rate now available for investors is Ubank’s Fixed Rate Loan for Investors with 3.69 per cent (comparison rate 4.32 per cent).

You can research and compare investor home loans from all the significant banks, credit unions and non-bank lenders in Australia here.


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