A low rate can boost your cash flow

Think you can’t get a low interest rate on an investment loan? Think again!

There are still great rates available to investors but finding these gems is tough.

Most lenders simply don’t advertise their best rates but we’re a mortgage broker with access to nearly 40 lenders. We can help!

Check out these great investment loan rates

Residentially secured investment loan rates

Loan Category Interest Rate Comparison Rate* Contact Us
Variable 3.84% 4.09% Apply
Variable combined with home loan 3.74% 3.99% Apply
1 year fixed 3.99% 4.95% Apply
2 years fixed 3.90% 4.95% Apply
3 years fixed 3.89% 4.99% Apply
5 years fixed 4.19% 4.51% Apply

Not only can you get a great interest rate, you may be able to borrow 95% of the purchase price on a residentially secured investment loan.

Commercially secured investment loans

Loan Category Interest Rate Contact Us
Variable 4.39% Apply
1 year fixed 4.60% Apply
2 years fixed 4.51% Apply
3 years fixed 4.37% Apply
5 years fixed 4.80% Apply

SMSF investment loans

Residentially secured SMSF investment loan rates

Loan Category Interest Rate Comparison Rate* Contact Us
Variable 5.55% 5.79% Apply
1 year fixed 5.19% 6.03% Apply
2 years fixed 4.99% 5.93% Apply
3 years fixed 5.09% 5.89% Apply
5 years fixed 5.39% 5.90% Apply

Commercially secured SMSF investment loans

Loan Category Interest Rate Contact Us
Variable 4.85% Apply
1 year fixed 4.60% Apply
2 years fixed 4.51% Apply
3 years fixed 4.37% Apply
5 years fixed 4.80% Apply

Please note that even if you find a great interest rate on an SMSF investment loan, most lenders will restrict your loan to 70% of the property value.

Our mortgage brokers specialise in SMSF loans and know lenders that can let you borrow up to 80% of the purchase price. You can call us on 1300 889 743 or complete our free online assessment form to check if you qualify.


Low doc investment loans

Low doc investment loan rates

Loan Category Interest Rate Comparison Rate* Contact Us
Variable 4.62% 5.01% Apply
1 year fixed 4.46% 5.73% Apply
2 years fixed 3.69% 4.88% Apply
3 years fixed 3.79% 4.86% Apply
5 years fixed 3.89% 4.89% Apply

If you’re unable to provide normal income verification documents such as tax returns, financial statements or payslips, you can take out a low doc investment loan. However, you’ll have to pay slightly higher interest rates.

Lease doc investment loans

Loan Category Interest Rate Contact Us
Variable 5.54% Apply
1 year fixed 5.29% Apply
2 years fixed 5.39% Apply
3 years fixed 5.49% Apply
5 years fixed 5.74% Apply

No doc investment loans

Loan Category Interest Rate Contact Us
Variable 6.30% Apply
1 year fixed POA Apply
2 years fixed POA Apply
3 years fixed POA Apply
5 years fixed POA Apply

*WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Each comparison rate is calculated based on $150,000 over 25 years for a secured loan.

Please note that you can’t get a no doc investment loan to buy residential investment properties because it would then be regulated by the National Consumer Credit Protection (NCCP) act.


How do I prepare before applying for an investment loan?

With the current tighter lending criteria, it’s important to prepare yourself before applying for an investment loan to boost your chances for loan approval.

Before you apply for a mortgage, make sure you can meet basic lending criteria such as:

  • You have 5% – 10% in genuine savings. Typically, banks consider genuine savings as a deposit you’ve held or saved in a bank account for at least three months.
  • Lenders may want to see equity in another property if you’re borrowing more than 90% of the purchase price.
  • You must not have any bad credit records.
  • Your credit score must be above average.
  • Most lenders expect stable employment and a strong income.

You can also start preparing the documents required to prove your income such as tax returns and bank statements.

To learn more, you can check out how to prepare to apply for a loan.


Am I being overcharged?

Without even realising it, you may be paying a more in interest than you need to. Banks have different ways of increasing someone’s interest rates.

Some of their methods include moving the standard variable rate, providing a minimal rate discount and cancelling your discounts without notice if you aren’t able to meet lending criteria later on.

Even if you took out an investment loan just over two years ago, you may no longer be on a competitive rate.

By regularly reviewing your interest rates, you can identify whether or not you’re paying more than you need to. If you are, you can request a discount or refinance to another lender.


Can I get a no deposit investment loan?

Although there are ways to get a no deposit investment loan, it isn’t as simple as it was in the past.

You can still borrow up to 105% without a deposit with a guarantor mortgage. However, only a select few lenders in Australia will accept a guarantor for an investment loan.

In order to qualify, you’ll need to meet certain criteria such as:

  • Your guarantor must own property in Australia which can be used as additional security for the mortgage.
  • You must be buying only one investment property. However, there may be some exceptions to this.
  • In most cases, you can’t qualify if you have excessive unsecured debts such as credit cards.
  • In most cases, your guarantor must be working or be a self funded retiree.

Please note that for a better chance of approval on a no deposit investment loan, your property needs to be easy to sell. This means properties in remote locations or properties such as inner city units and studio apartments may not be accepted.


How tough is the property investment loan market at present?

Under pressure from the regulators, lenders have collectively jacked up their rates on investor loans. They’ve also imposed stricter lending criteria. This is a result of the cap on the borrowing that was set by the Australian Prudential Regulation Authority (APRA).

Not only do many lenders require investors to have larger deposits, only a handful of lenders would now lend 90% while even fewer lend 95% of the purchase price.

Negative gearing may no longer be included in the serviceability calculation. Rental income is assessed more conservatively and all existing debts are assessed at a rate of 7% to 8.5%. Many well off and successful investors are unable to borrow more or refinance because of this.

In essence, it’s a tough time to access loans as investors. The good news is, you can still find competitive investment loan rates if you know where to look. Applying with the right lender is key to getting a great deal.


Where can I find the best investment loan rates?

Where can you find the best investment loan rates when the banks may not even publish them?

We specialise in getting tough loans approved and our mortgage brokers are always up to date with the best and most competitive investment loan rates.

Speak to us today on 1300 889 743 or fill in our free online assessment form and one of our credit specialists will contact you to discuss your loan needs.

  • Favenc

    I want to refinance my investment loan to a lender that can offer a more competitive interest rate. The loan’s at 75% LVR.

  • Hey Favenc, we can help with that. Please call us on 1300 889 743 and discuss your situation with one of our expert mortgage brokers and we will help you find the lenders that can offer competitive investment loan rates.

  • deedee

    I’ve been interested in the prospect of investing in vacant land. Do you have some tips / suggestions or any advice regarding this?

  • Hi deedee,

    The benefits of investing in land can be substantial but you’ll need to play your cards right and research before you dive in. Investing in raw land carries its own potential risks and drawbacks. If you’re not building, you may just be speculating. We have a page on investing in land where we have a lot of info on this so please check it out:
    https://www.homeloanexperts.com.au/investment-loans/investing-in-land/

  • stevenson

    How will a bank assess joint investment mortgages? Just wondering…

  • Hey stevenson,

    The banks will assess the investment loan slightly differently:
    – One person having a high income will make up for the other not being able to afford their share of the repayments.
    – One person having a good credit history will not compensate for the other having poor credit, unless their income is not required to prove that you can afford the debt.
    – Credit scoring will normally be slightly more favourable than for a single applicant.
    – The asset position of each borrower is assessed differently depending on the lender you apply with.

  • heidi

    If we’re planning on investing in a very high valued commercial property (>$5 mils), will we get rate discounts?

  • Hey heidi,
    It’s often better to go with a bank bill loan or a Bank Bill Swap Bid Rate (BBSY) facility for high loan amounts. The bank bill facility is linked to the bank’s cost of funds – which is generally at the Reserve Bank of Australia (RBA) official cash rate – and then a margin added on top of that determined by the amount you’re borrowing, your security and the overall risk of your application.

    The bank will apply a risk rating, with ‘A’ being the best and a rating of ‘D’ considered a higher risk. If you can reduce your LVR and you can provide full financials (full doc) that show that you’re in a good asset position with a good repayment history, this can help you get significantly reduced interest rates for larger commercial investment loans.

    Please check out the bank bill loans page if you’d like to learn more:
    https://www.homeloanexperts.com.au/commercial-property-loan/bank-bill-loans/

  • Muncy

    I’ve gone through many investment properties and met many investors in the process. After chatting with some of them and learning things, I found out about BBSY rates and that they are really cheap and great. Can I qualify for that rate? And why isn’t that mentioned here?

  • Hi Muncy,

    A BBSY rate (Bank Bill Swap Bid Rate facility) is actually the rate on a bank bill business loan and it’s generally for large businesses borrowing huge amounts, usually over $5 million (though it is possible to get one for amounts just over $2 million). This would also depend on how risky your application is. So you don’t generally qualify for this on a standard investment loan, which is why it’s not on here. If you are investing in such a high valued property then you can check out more about this rate under the BBSY Loans section here:
    https://www.homeloanexperts.com.au/business-loans/business-loan-interest-rates/