Lender | Product | Interest Rate | Comparison Rate | Repayments | Features | Exit Fees | Upfront Fees | Ongoing Fees |
---|---|---|---|---|---|---|---|---|
Macquarie Bank | Offset Home Loan Package Fixed 2yr | 0.35% | Initial Repayment: 0 1 Year Interest Payable: $0.00 2 Year Interest Payable: $0.00 Total Interest Payable: $0.00 Total Amount to be Repaid: $608,553.00 | Extra Repayment: Yes Offset: No Partial Offset: No Redraw: No Repayment Holiday: No Splitting: Yes Maximum LVR - with LMI: N/A | Discharge Fee: $0.00 Early Repayment Fee: $0.00 | Establishment Fee: $350.00 Legal/Solicitor Fee : $363.00 Settlement Fee: $0.00 Valuation Fee: $0.00 Additional Valuation Fee: $110.00 Settlement Administration Fee: $0.00 Title Search Fee: $0.00 | Account Service fee: $0.00 Annual Service Fee: $0.00 Annual Package Fee: $0.00 | |
Qudos Bank | Fixed Rate Home Loan 2yr | 6.54% | 6.62% | Initial Repayment: $3,270.00 1 Year Interest Payable: $39,240.00 2 Year Interest Payable: $78,480.00 Total Interest Payable: $827,366.00 Total Amount to be Repaid: $1,427,666.00 | Extra Repayment: Yes Offset: No Partial Offset: No Redraw: No Repayment Holiday: No Splitting: Yes Maximum LVR - with LMI: 90% | Discharge Fee: $0.00 Early Repayment Fee: $0.00 | Establishment Fee: $0.00 Legal/Solicitor Fee : $0.00 Settlement Fee: $0.00 Valuation Fee: $0.00 Additional Valuation Fee: $0.00 Settlement Administration Fee: $0.00 Title Search Fee: $0.00 | Account Service fee: $0.00 Annual Service Fee: $0.00 Annual Package Fee: $0.00 |
Suncorp | Home Package Plus Fixed Rate Home Loan 2yr | 6.59% | 6.80% | Initial Repayment: $3,295.00 1 Year Interest Payable: $39,540.00 2 Year Interest Payable: $79,080.00 Total Interest Payable: $775,673.00 Total Amount to be Repaid: $1,387,273.00 | Extra Repayment: Yes Offset: No Partial Offset: No Redraw: No Repayment Holiday: No Splitting: Yes Maximum LVR - with LMI: 90% | Discharge Fee: $0.00 Early Repayment Fee: $0.00 | Establishment Fee: $0.00 Legal/Solicitor Fee : $0.00 Settlement Fee: $0.00 Valuation Fee: $0.00 Additional Valuation Fee: $150.00 Settlement Administration Fee: $0.00 Title Search Fee: $0.00 | Account Service fee: $0.00 Annual Service Fee: $0.00 Annual Package Fee: $375.00 |
AMP | Professional Package Fixed Rate Loan 2 yr | 6.64% | 7.20% | Initial Repayment: $3,320.00 1 Year Interest Payable: $39,840.00 2 Year Interest Payable: $79,680.00 Total Interest Payable: $802,323.00 Total Amount to be Repaid: $1,413,478.00 | Extra Repayment: Yes Offset: No Partial Offset: No Redraw: No Repayment Holiday: No Splitting: Yes Maximum LVR - with LMI: N/A | Discharge Fee: $0.00 Early Repayment Fee: $0.00 | Establishment Fee: $0.00 Legal/Solicitor Fee : $295.00 Settlement Fee: $0.00 Valuation Fee: $0.00 Additional Valuation Fee: $0.00 Settlement Administration Fee: $0.00 Title Search Fee: $0.00 | Account Service fee: $0.00 Annual Service Fee: $0.00 Annual Package Fee: $349.00 |
Westpac | Fixed Rate Investment Property Loan 2yr | 6.64% | 8.30% | Initial Repayment: $3,320.00 1 Year Interest Payable: $39,840.00 2 Year Interest Payable: $79,680.00 Total Interest Payable: $997,574.00 Total Amount to be Repaid: $1,609,774.00 | Extra Repayment: Yes Offset: No Partial Offset: No Redraw: Yes Repayment Holiday: Yes Splitting: Yes Maximum LVR - with LMI: N/A | Discharge Fee: $0.00 Early Repayment Fee: $0.00 | Establishment Fee: $0.00 Legal/Solicitor Fee : $0.00 Settlement Fee: $0.00 Valuation Fee: $0.00 Additional Valuation Fee: $0.00 Settlement Administration Fee: $0.00 Title Search Fee: $0.00 | Account Service fee: $0.00 Annual Service Fee: $0.00 Annual Package Fee: $395.00 |
Bank Of Melbourne | Fixed Rate Home Loan 2yr | 6.64% | 8.34% | Initial Repayment: $3,320.00 1 Year Interest Payable: $39,840.00 2 Year Interest Payable: $79,680.00 Total Interest Payable: $994,809.00 Total Amount to be Repaid: $1,607,273.00 | Extra Repayment: Yes Offset: Yes Partial Offset: Yes Redraw: Yes Repayment Holiday: Yes Splitting: Yes Maximum LVR - with LMI: N/A | Discharge Fee: $0.00 Early Repayment Fee: $0.00 | Establishment Fee: $0.00 Legal/Solicitor Fee : $0.00 Settlement Fee: $100.00 Valuation Fee: $164.00 Additional Valuation Fee: $164.00 Settlement Administration Fee: $0.00 Title Search Fee: $0.00 | Account Service fee: $0.00 Annual Service Fee: $0.00 Annual Package Fee: $395.00 |
St George Bank | Fixed Rate Home Loan 2yr | 6.64% | 8.32% | Initial Repayment: $3,320.00 1 Year Interest Payable: $39,840.00 2 Year Interest Payable: $79,680.00 Total Interest Payable: $992,045.00 Total Amount to be Repaid: $1,604,345.00 | Extra Repayment: Yes Offset: Yes Partial Offset: Yes Redraw: Yes Repayment Holiday: Yes Splitting: Yes Maximum LVR - with LMI: 90% | Discharge Fee: $0.00 Early Repayment Fee: $0.00 | Establishment Fee: $0.00 Legal/Solicitor Fee : $0.00 Settlement Fee: $100.00 Valuation Fee: $0.00 Additional Valuation Fee: $164.00 Settlement Administration Fee: $0.00 Title Search Fee: $0.00 | Account Service fee: $0.00 Annual Service Fee: $0.00 Annual Package Fee: $395.00 |
Bank SA | Fixed Rate Home Loan 2yr | 6.64% | 8.31% | Initial Repayment: $3,320.00 1 Year Interest Payable: $39,840.00 2 Year Interest Payable: $79,680.00 Total Interest Payable: $993,427.00 Total Amount to be Repaid: $1,605,727.00 | Extra Repayment: Yes Offset: Yes Partial Offset: Yes Redraw: Yes Repayment Holiday: Yes Splitting: Yes Maximum LVR - with LMI: N/A | Discharge Fee: $0.00 Early Repayment Fee: $0.00 | Establishment Fee: $0.00 Legal/Solicitor Fee : $0.00 Settlement Fee: $100.00 Valuation Fee: $0.00 Additional Valuation Fee: $164.00 Settlement Administration Fee: $0.00 Title Search Fee: $0.00 | Account Service fee: $0.00 Annual Service Fee: $0.00 Annual Package Fee: $395.00 |
ING | 2 Year Fixed Rate | 6.69% | 6.43% | Initial Repayment: $3,345.00 1 Year Interest Payable: $40,140.00 2 Year Interest Payable: $80,280.00 Total Interest Payable: $763,933.00 Total Amount to be Repaid: $1,364,981.00 | Extra Repayment: Yes Offset: No Partial Offset: No Redraw: No Repayment Holiday: No Splitting: Yes Maximum LVR - with LMI: 80% | Discharge Fee: $0.00 Early Repayment Fee: Break costs may apply if the fixed rate loan is discharged or switched prior to the end of the selected fixed term or More than $10,000 in additional repayments made in 1 year period | Establishment Fee: $499.00 Legal/Solicitor Fee : $0.00 Settlement Fee: $299.00 Valuation Fee: $0.00 Additional Valuation Fee: $0.00 Settlement Administration Fee: $0.00 Title Search Fee: $0.00 | Account Service fee: $0.00 Annual Service Fee: $0.00 Annual Package Fee: $0.00 |
ANZ Bank | ANZ Fixed Rate Home Loan 2yr | 6.74% | 7.63% | Initial Repayment: $3,370.00 1 Year Interest Payable: $40,440.00 2 Year Interest Payable: $80,880.00 Total Interest Payable: $964,347.00 Total Amount to be Repaid: $1,564,857.00 | Extra Repayment: Yes Offset: No Partial Offset: No Redraw: No Repayment Holiday: No Splitting: Yes Maximum LVR - with LMI: 90% | Discharge Fee: $0.00 Early Repayment Fee: May be payable if you choose to make additional repayments, repay your fixed loan (in part or full) or switch to another fixed or variable interest rate before the end of your fixed rate period | Establishment Fee: $0.00 Legal/Solicitor Fee : $0.00 Settlement Fee: $160.00 Valuation Fee: $150.00 Additional Valuation Fee: $0.00 Settlement Administration Fee: $0.00 Title Search Fee: $50.00 | Account Service fee: $0.00 Annual Service Fee: $0.00 Annual Package Fee: $0.00 |
Adelaide Bank | Connective Select - 2 Year Fixed | 6.79% | 6.53% | Initial Repayment: $3,395.00 1 Year Interest Payable: $40,740.00 2 Year Interest Payable: $81,480.00 Total Interest Payable: $776,777.00 Total Amount to be Repaid: $1,377,600.00 | Extra Repayment: Yes Offset: Yes Partial Offset: No Redraw: Yes Repayment Holiday: No Splitting: Yes Maximum LVR - with LMI: N/A | Discharge Fee: $0.00 Early Repayment Fee: $0.00 | Establishment Fee: $299.00 Legal/Solicitor Fee : $0.00 Settlement Fee: $199.00 Valuation Fee: $0.00 Additional Valuation Fee: $0.00 Settlement Administration Fee: $0.00 Title Search Fee: $0.00 | Account Service fee: $0.00 Annual Service Fee: $0.00 Annual Package Fee: $0.00 |
NAB | NAB Tailored Home Loan - Fixed Interest Rate 2yr | 6.89% | 8.13% | Initial Repayment: $3,445.00 1 Year Interest Payable: $41,340.00 2 Year Interest Payable: $82,680.00 Total Interest Payable: $1,039,485.00 Total Amount to be Repaid: $1,642,715.00 | Extra Repayment: Yes Offset: Yes Partial Offset: No Redraw: Yes Repayment Holiday: Yes Splitting: Yes Maximum LVR - with LMI: N/A | Discharge Fee: $0.00 Early Repayment Fee: $0.00 | Establishment Fee: $0.00 Legal/Solicitor Fee : $0.00 Settlement Fee: $0.00 Valuation Fee: $0.00 Additional Valuation Fee: $0.00 Settlement Administration Fee: $0.00 Title Search Fee: $0.00 | Account Service fee: $8.00 Annual Service Fee: $0.00 Annual Package Fee: $0.00 |
Commonwealth Bank | Fixed Rate Home Loans 2yr | 6.94% | 8.65% | Initial Repayment: $3,470.00 1 Year Interest Payable: $41,640.00 2 Year Interest Payable: $83,280.00 Total Interest Payable: $1,083,587.00 Total Amount to be Repaid: $1,696,002.00 | Extra Repayment: Yes Offset: No Partial Offset: No Redraw: No Repayment Holiday: No Splitting: Yes Maximum LVR - with LMI: 90% | Discharge Fee: $0.00 Early Repayment Fee: $0.00 | Establishment Fee: $0.00 Legal/Solicitor Fee : $0.00 Settlement Fee: $200.00 Valuation Fee: $0.00 Additional Valuation Fee: $0.00 Settlement Administration Fee: $0.00 Title Search Fee: $0.00 | Account Service fee: $0.00 Annual Service Fee: $0.00 Annual Package Fee: $395.00 |
uBank | Flex 2 Year Fixed | 6.98% | 6.70% | Initial Repayment: $3,490.00 1 Year Interest Payable: $41,880.00 2 Year Interest Payable: $83,760.00 Total Interest Payable: $767,413.00 Total Amount to be Repaid: $1,375,963.00 | Extra Repayment: Yes Offset: No Partial Offset: No Redraw: Yes Repayment Holiday: Yes Splitting: Yes Maximum LVR - with LMI: N/A | Discharge Fee: $0.00 Early Repayment Fee: $0.00 | Establishment Fee: $250.00 Legal/Solicitor Fee : $0.00 Settlement Fee: $0.00 Valuation Fee: $0.00 Additional Valuation Fee: $0.00 Settlement Administration Fee: $0.00 Title Search Fee: $0.00 | Account Service fee: $0.00 Annual Service Fee: $250.00 Annual Package Fee: $0.00 |
Bankwest | Complete Fixed Home Loan 2yr | 7.09% | 8.08% | Initial Repayment: $3,545.00 1 Year Interest Payable: $42,540.00 2 Year Interest Payable: $85,080.00 Total Interest Payable: $975,408.00 Total Amount to be Repaid: $1,588,048.00 | Extra Repayment: Yes Offset: No Partial Offset: Yes Redraw: Yes Repayment Holiday: No Splitting: Yes Maximum LVR - with LMI: 90% | Discharge Fee: $0.00 Early Repayment Fee: $0.00 | Establishment Fee: $0.00 Legal/Solicitor Fee : $250.00 Settlement Fee: $0.00 Valuation Fee: $0.00 Additional Valuation Fee: $0.00 Settlement Administration Fee: $0.00 Title Search Fee: $40.00 | Account Service fee: $0.00 Annual Service Fee: $0.00 Annual Package Fee: $395.00 |
Firstmac | Firstmac Fixed 2 Year | 7.34% | 7.38% | Initial Repayment: $3,670.00 1 Year Interest Payable: $44,040.00 2 Year Interest Payable: $88,080.00 Total Interest Payable: $931,708.00 Total Amount to be Repaid: $1,533,078.00 | Extra Repayment: Yes Offset: No Partial Offset: No Redraw: No Repayment Holiday: No Splitting: Yes Maximum LVR - with LMI: N/A | Discharge Fee: $0.00 Early Repayment Fee: $0.00 | Establishment Fee: $0.00 Legal/Solicitor Fee : $200.00 Settlement Fee: $300.00 Valuation Fee: $220.00 Additional Valuation Fee: $0.00 Settlement Administration Fee: $0.00 Title Search Fee: $0.00 | Account Service fee: $0.00 Annual Service Fee: $0.00 Annual Package Fee: $0.00 |
AXIS | Axis Origin Fixed 2 Yr P&I | 8.09% | 7.42% | Initial Repayment: $4,045.00 1 Year Interest Payable: $48,540.00 2 Year Interest Payable: $97,080.00 Total Interest Payable: $890,891.00 Total Amount to be Repaid: $1,504,035.00 | Extra Repayment: Yes Offset: Yes Partial Offset: No Redraw: Yes Repayment Holiday: No Splitting: No Maximum LVR - with LMI: N/A | Discharge Fee: $0.00 Early Repayment Fee: $0.00 | Establishment Fee: $194.00 Legal/Solicitor Fee : $0.00 Settlement Fee: $0.00 Valuation Fee: $305.00 Additional Valuation Fee: $0.00 Settlement Administration Fee: $0.00 Title Search Fee: $0.00 | Account Service fee: $0.00 Annual Service Fee: $395.00 Annual Package Fee: $0.00 |
Some investors choose to combine a fixed interest rate with interest-only repayments on their investment property loan. To understand why this type of loan could be worth considering, let’s take a look at each of the main aspects and how they work.
A 2-year fixed rate investment home loan means you ‘lock in’ your interest rate for that period, before reverting to a variable rate (unless you refinance). Your repayments will be fixed during that time and you’ll be protected from sudden rate rises.
The main downside is that you won’t benefit from potential rate cuts or have access to as many loan features as you typically would with a variable rate investment home loan.
Still, investors seeking certainty may prefer an investment home loan with a fixed interest rate and predictable repayments than one with bells and whistles.
Interest-only is a repayment option on your investment home loan where you pay the interest component for a set period (up to five years), not the loan balance.
Interest payments on investor home loans are tax deductible. Many investors choose interest-only repayments to maximise their tax deduction while lowering their mortgage repayments. This can free up cashflow to re-invest into the property and build equity, or invest elsewhere.
It’s important to note that during the interest-only period, you're not reducing the principal balance, which means you'll need a plan to repay the loan amount eventually.
At the end of the interest-only period, investors generally have the following options:
"When choosing an investment loan, you should always have an exit strategy in line with the loan product you choose. For example, if you're planning on purchasing and selling your property within five years and you're expecting significant capital growth, then you could opt for a five-year interest-only home loan. Each investor will have a different goal, so when in doubt, speak to a financial adviser or mortgage broker about your options."
Mansour Soltani, Money.com.au's home loan expert
The best 2-year fixed investment loan with interest-only repayments rates will depend on your deposit (or equity), loan amount and credit profile.
To give you an idea of what’s available right now:
Fixed rate home loans have limited flexibility, but still come with useful features for investors, including:
“It really depends on the market and what rates you can access. If the rates are historically high, fixing for multiple years mightn’t be a great option. This is because there are significant break costs if the rates drop and you refinance. If you want peace of mind and are adamant about fixing your rate, then you could consider splitting your home loan 50/50, fixed and variable. That way, you get the best of both worlds and hedge your bets.”
Mansour Soltani, Money.com.au's home loan expert
Compare the advertised rate of different investor home loans to estimate your interest-only monthly repayments. While a low interest rate is important, it's not the only factor to consider. Other aspects like loan features, fees, and your loan term will also impact your hip pocket.
You must also look at the comparison rate, which shows the true cost of a home loan, including interest and fees. Your actual individual rate may differ depending on your loan-to-value ratio (LVR) and loan amount.
Some of your home loan fees may be tax deductible, but you should still look at an investment loan with lower fees and a simple fee structure to make budgeting and record keeping easier.
Property investors often look for a home loan with an offset account (or multiple offset accounts) to save on interest and a redraw facility to access additional repayments. These are the most valuable home loan features for an investor. Keep in mind fixed rate investment home loans don’t come with as many features as their variable rate counterparts.
Lenders typically offer fixed rate terms on investment home loans of one to five years. Check out our guides on:
You can use an investment home loan to buy an investment property. This can include a home you want to rent out or real estate you plan to earn a return on. Interest rates for investment home loans are usually higher than those for owner-occupier home loans (for buyers who buy a home to live in). Besides that, they both work the same way.
You generally need a deposit of 20% of the property's value (or usable equity) to avoid paying lender's mortgage insurance (LMI) on an investment home loan. Some lenders will accept a deposit as low as 5%, although it may not get you the best rate. The bigger your deposit, the lower your LVR and the better your interest rate. Your property's value will be based on the lender's valuation.
Usable equity is the equity in your home you can access and borrow against, which is lower than your total home equity. Investors may refinance their home loan to access equity for renovations, debt consolidation or other investments. Lenders calculate usable equity as 80% of property’s value, minus the loan balance.
Shopping around for the right loan can save you thousands of dollars in interest and fees.
Home Loans guides and resources
What's the next step on your property journey? Our home loan guides will help you navigate the road ahead, whether you're buying, building or looking to save on an existing loan.