We’ve combed through all 50+ lenders on our panel to find the best five investment loans. These top five lenders have been chosen by our mortgage brokers as especially reliable when providing such investment solutions.
Take note if you’re looking into buying an investment property today, because their investment home loan products will definitely help make what can be a stressful situation go smoothly and quickly.
The Top Five Investment Lenders
With more than 40 years of experience, Firstmac is a company that knows how to get things done. They have provided 130,000 home loans and manage $16 billion in mortgages with their technology-driven approach – all while maintaining an A+ rating from rating agencies because they stay ahead by using smart technologies.
For those looking for simplicity, along with great features, then look no further; Firstmac may be able to help you take out an investment home loan successfully.
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
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
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)
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.
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.
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.