While we understand the perfect investment loan lender for you is the one with the least interest rate, there are other aspects to lending that needs consideration. Factors such as customer experience, LMI requirements, and down payment also need to be considered.
At Home Loan Experts, we work with more than 50 lenders and our brokers have combed through this list and determined 5 of these to be reliable when providing investment loans.
So, let’s take a look at our top 5 namely Firstmac, ANZ, Pepper, Westpac, and Macquarie.
The Top Five Investment Lenders
1. Firstmac
Firstmac has more than 40 years of experience under their belt and has provided 130,000 home loans. They manage $16 billion in mortgages and have a technology-driven approach. Their overall rating is A+ and if you are looking for simplicity along with great features then Firstmac is perfect for you.
Firstmac Investment Loan Features
- Strong gearing addback and use 100% rental income
- Investment loan interest addback is 100%
- No Debt-to-Income limitation
- Negative gearing up to assessment rate
- Takes 80% rental income
- 100% overtime, bonus, commission, probation income accepted
- No genuine savings required
- Properties in high-density housing available at LVR of up to 80%
- Simple SMSF product and process
- Interest-only terms available to 90% LVR
2. ANZ
ANZ bank is one of the most recognised banks in Australia and across all markets. It provides banking products such as loans and mortgages, alongside investment options for those who need them while also operating 32 different global locations.
ANZ Investment Loan Features
- Can take 90% of rental income from tenanted or non-tenanted properties
- Can lend up to 97% LVR (limited by DTI)
- Visibility of loan and investments through My Portfolio – making it easy to keep track
- Can apply for a loan with interest-only payments for an agreed upon term of 10 years maximum for investment property
- No genuine savings requirement for investors
- Requires investors to present only a single year’s tax returns and Notices of Assessment (NOA)
- Calculates negative gearing using the actual interest rate and not the assessment rate
- Accepts non-resident investors on Medium and Long-term Strategic Skills List (MLTSSL) and 457 visas
- actors in all types of work-related allowances while calculating an investor’s borrowing power
- Offers good cashback on refinances
- Flexible credit policy for high-net-worth investors taking a loan of up to $1.5 million or keeping security that is worth above $3 million
3. Pepper
Pepper serves the financial ambitions of diverse people and has grown rapidly into new thinking with products for every need. The lender offers fantastic packages for investment property home loans.
Pepper Investment Loan Features
- Good servicing (especially investors with multiple loans – they use the actual repayment for existing loans, whereas other lenders use a buffer on top of existing repayments)
- Individual and personalised assessment
- Investment home loan interest rates matched to your circumstances
- 90-day valid conditional approval
- Interest-only repayments available
- Individuals or companies acting as trustee are considered
- Negative gearing benefits applied
- Rental income considered for loan servicing
- Borrow up to 90% of the property value on some loans
- Interest-only payments (up to five years)
4. Westpac
Westpac is one of Australia’s big four banks, and it has a broad range of consumer-focused services to help customers with their financial needs. The bank excels at investment home loan products.
Westpac Investment Loan Features
- Higher loan exposures
- Best serviceability (borrowing power) for investors
- Competitive interest rates for products such as basic variable, package variable, and fixed-rate, with pricing discounts available for package products even for LVRs above 90%
- Good refinance cashback offers
- Favourable debt-to-income (DTI) policy
- Accepts share and dividend income for serviceability
- Accepts inner city (high-density) properties as security for loans with up to 90% Loan-To-Value Ratio (LVR)
- Waived LMI available on 90% LVR investment loans for medical, accounting and legal professionals
- Delegated Underwriting Authority (DUA), which means a more flexible credit policy for investment loans with LMI
- On an investment property, interest-only repayments can be requested and applied to existing or new loans for up to 10 years over the life of the loan.
5. Macquarie
Macquarie Bank’s rates are some of the most competitive so investors will get the best deals available. With products that cover every aspect of investing, from mortgages and savings accounts – the bank has what it takes to get investors started on their home loan journey.
Macquarie Investment Loan Features
- Low investment rates at 80% LVR and below
- No limits on cash out, although questions may be asked for anything over $1 million
- Straightforward application process and fast turnaround times
- Options such as splitting between variable and fixed interest rates
- Unlimited, fee-free access to any additional repayments made with the redraw facility
- No limit on additional payments on a home loan with a variable interest rate
- Roll off onto a competitive variable rate when your fixed interest-rate term ends
- Open up to 10 offset accounts per loan, allowing you to pay off your loan sooner by using your savings to reduce the amount of interest you pay
- The maximum interest-only period for a home loan is five years. Any interest-only term longer than the initial five years is subject to credit assessment and approval.
Bonus tip
If you’re interested in learning more about investing, we’ve got a great beginner’s guide for those just starting out. It covers everything from strategies and deciding on property to tax implications and everything in between! Check out these pages:
Get professional help!
Property can be an attractive investment for growing wealth. As with all investments, there are a few things to consider first, because there is always a risk.
It’s essential to do as much research as possible to reduce the risk of something unexpected happening, and that’s where we come in. Our expert mortgage brokers can guide you from start to finish on your property investment journey.
To book a time with a Home Loan Experts mortgage broker, call us on 1300 889 743 or fill out our free online assessment form.