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Westpac cuts variable rates on investment mortgage loans

On Tuesday, Westpac and its subsidiaries St George, Bank of Melbourne and BankSA cut interest rates on a few interest-only investment real estate loans.

For Westpac, the reductions correspond to a reduction of 30 basis points compared to the old rates, while for the subsidiaries it is 20 basis points.

Westpac details are as follows:

  • Inv Flexi First Option 70% LVR: Up to 2.99% pa (compare rate of 3.00% pa *)
  • Inv Flexi First Option 80% LVR: Up to 3.09% per year (comparison rate of 3.10% per year *)

Interest rates for similar products have been reduced at subsidiaries, but individual interest rates may differ, with more details below.

These discounts are “special offers”, meaning they can be withdrawn at any time.

Falling interest rates on interest-only loans is an emerging trend of late, with ING and Gateway Bank doing so earlier in September.

Westpac’s latest rate changes follow various rate changes to homeowner loans at the end of August.

Interest-only payments apply during the life of the loan, which might be preferred by investors who are able to pay only interest and then repay the loan with the proceeds from the sale of the house, provided that its value increases.

St George is changing

  • Variable Base IO 60% investment: 20 basis points reduction to 2.74% pa (comparison rate of 2.76% pa *)
  • Investment Variable Base IO 80%: 20 basis points reduction to 2.79% pa (comparison rate of 2.81% pa *)

Bank of Melbourne is changing

  • Variable Base IO 60% investment: 20 basis points reduction to 2.74% pa (comparison rate of 2.76% pa *)
  • Investment Variable Base IO 80%: 20 basis points reduction to 2.79% pa (comparison rate of 2.81% pa *)

BankSA is changing

  • Investment Variable Base IO 80%: 20 basis points reduction to 2.79% pa (comparison rate of 2.81% pa *)

Within-group mortgage rates are available for new loans and external refinancing, but exclude internal group refinancing, which also includes RAMS.


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Lender

Rate type Gap Redraw Ongoing charges The initial costs LVR Lump sum reimbursement Additional refunds Pre-approval

Variable More details
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Low-rate home loan – Premium (principal and interest) (investment) (LVR
  • No upfront or ongoing costs
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  • Additional refunds + reprint services

Variable More details
REFINANCING IN MINUTES, NOT WEEKS

Nano Home Loans Variable Investor, Principal and Interest (Refinancing Only)

  • Refinancing only. Fast online application
  • No Nano fees. 100% free sub-account clearing
  • Mobile app, Visa debit card and instant payments
Variable More details
EASY ONLINE REQUEST

Garden investment loan (principal and interest) (LVR
  • No administration fees
  • Unlimited additional refunds
  • Unlimited free withdrawals

Variable More details
FREE RECOVERY EASE

Smart Investor Home Loan (principal and interest) (LVR)
  • Possibility to add an offset for 0.10%
  • Fast turnaround times, can meet a 30 day settlement
  • No ongoing or monthly fees

Basic criteria: a loan amount of $ 400,000, variable, fixed, principal and interest (P&I) home loans with an LVR (loan to value) ratio of at least 80%. However, the table “Compare mortgages” allows calculations to be performed on variables selected and entered by the user. All products will list the LVR along with the product and price which is clearly posted on the product supplier’s website. Monthly repayments, once the basic criteria are changed by the user, will be based on the advertised rates of the selected products and determined by the loan amount, type of repayment, loan term and LVR entered by the user. /you. Prices correct as of October 30, 2021. See disclaimer.


Photo by Piqsels

The entire market was not taken into account in the selection of the above products. Instead, a smaller part of the market has been envisioned, which includes the retail products of at least the Big Four Banks, the Top 10 Customer-Owned Institutions and Australia’s largest non-banks:

Products from some vendors may not be available in all states. To be taken into account, the product and the price must be clearly published on the website of the supplier of the product.

In the interest of full disclosure, Savings.com.au, Performance Drive, and Loans.com.au are part of the Firstmac group of companies. To learn more about how Savings.com.au handles potential conflicts of interest, as well as how we are paid, please click on the links on the website.

*Comparison rate is based on a loan of $ 150,000 over 25 years. Please note that the comparison rate only applies to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as draw charges and cost savings such as fee waivers are not included in the comparison rate but may inuence the cost of the loan.


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