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Investment Home Loan Interest Rates

Greater Bank’s Investment Housing Loans are designed to help you achieve the financial dream of growing your property portfolio. We offer great value, our loans are easy to use, and we’re confident we’ve got the right loan to suit your investment needs.

Check out Greater Bank's range of Investment Home Loan Interest Rates and see how we measure up.

Rates are featured for our Ultimate Investment Home Loan and Great Rate Investment Home Loan.

 

Compare Investment Loan Rates

All Housing Loans have a base rate. The applicable base rate will depend on whether you select a standard or discounted housing loan and also the repayment type you select – Principal and Interest (P&I) or Interest Only (IO).

For P&I loans, margins may apply to the applicable base rates. For new IO loans, currently a 0.10% p.a. margin above the applicable base rates will apply. The base rates are set out below and the all up interest rate which includes any margins, will be set out in your credit contract.

Ultimate Investment Loan

Rates are effective as at 9am Thursday 07/12/2023

Ultimate Investment Home Loan - Discount variable rates

Ultimate Investment Home Loan Interest Rate# Comparison Rate
Variable 6.33% p.a. 6.69% p.a.
Rates are effective as at 9am Thursday 07/12/2023

Ultimate Investment Home Loan - Variable rate

Ultimate Investment Home Loan Interest rate Comparison rate^
Variable 8.04% p.a. 8.38% p.a.
Rates are effective as at 9am Thursday 07/12/2023

Ultimate Investment Home Loan - Fixed rates

Ultimate Investment Home Loan Interest rate~ Comparison rate^
1 Year Fixed 6.39% p.a. 8.20% p.a.
2 Years Fixed 6.09% p.a. 7.97% p.a.
3 Years Fixed 6.09% p.a. 7.80% p.a.
4 Years Fixed 6.19% p.a. 7.68% p.a.
5 Years Fixed 6.19% p.a. 7.55% p.a.

All Housing Loans have a base rate. The applicable base rate will depend on whether you select a standard or discounted housing loan and also the repayment type you select – Principal and Interest (P&I) or Interest Only (IO).

For P&I loans, margins may apply to the applicable base rates. For new IO loans, currently a 0.10% p.a. margin above the applicable base rates will apply. The base rates are set out below and the all up interest rate which includes any margins, will be set out in your credit contract.

Great Rate Investment Loan

Rates are effective as at 9am Thursday 07/12/2023

Great Rate Investment Home Loan - Discount variable rates

Great Rate Investment Home Loan Interest Rate# Comparison Rate^
Variable 6.24% p.a. 6.25% p.a.
Rates are effective as at 9am Thursday 07/12/2023

Great Rate Investment Home Loan - Variable rate

Great Rate Investment Home Loan Interest rate Comparison rate^
Variable 8.24% p.a. 8.25% p.a.
Rates are effective as at 9am Thursday 07/12/2023

Great Rate Investment Home Loan - Fixed rates

Great Rate Investment Home Loan Interest rate~ Comparison rate^
1 Year Fixed 6.39% p.a. 8.05% p.a.
2 Years Fixed 6.09% p.a. 7.80% p.a.
3 Years Fixed 6.09% p.a. 7.61% p.a.
4 Years Fixed 6.19% p.a. 7.48% p.a.
5 Years Fixed 6.19% p.a. 7.33% p.a.

Why Choose Greater for an Investment Property Home Loan?

Here at Greater Bank we know that an investment property is a big decision. We're here to support you on every step of your journey, whether you're an experienced investor or new to the game.
The greater advantages we offer, such as fast refinancing and competitive low rates, make managing your loan easier, and can give you a chance to get ahead
We've been helping customers with their banking since 1945, so our highly knowledgeable home loan experts are able to set you up with an investment loan that works for you

Find out more about our Investment Home Loans

Download a Home Loan Key Factsheet

Use our Home Loan Key Fact Sheet tool to get some more information about our loans and some of their features.

Home Loan Key Fact Sheet

Your questions answered

This will depend on a number of factors, but generally speaking, an investment loan is no harder to secure than an owner-occupied home loan. 

Your lender will take into account things like:

  • The value of the property you're looking to purchase;
  • The deposit amount you have available;
  • Your overall financial situation, including your current debt to income ratio.

For more on securing an investment loan, check out our recent blog.

This may vary from lender to lender, but typically a deposit amount of 20% of the purchase price of your property is required to secure an investment loan without having to pay Lenders Mortgage Insurance (LMI).

At Greater Bank, both our Ultimate Investment Home Loan and our Great Rate investment Home Loan require a 20% deposit to avoid LMI.

A fixed investment loan is a home loan which is approved so a borrower can complete an investment property purchase, opting for a fixed interest rate for an agreed initial term of their loan.

For example, you may want to fix your investment home loan interest rate for the first 5 years of your loan. This is usually done so that borrowers can take advantage of periods where fixed interest rates are cheaper than variable rates, or so that the borrower has confidence in the stability of their repayment amount for the length of the fixed period.

If you're wondering if you can afford an investment property, here are a couple of things that you can start thinking about:

  • Firstly, you will need a deposit of at least 5% of the property's value with P&I repayments, and if you want to avoid Lender's Mortgage Insurance (LMI) you will need a deposit of at least 20%.

  • Another thing to remember is that you might not always have a tenant in your investment property, so you may want to have enough saved up to cover your repayments when you don't have a tenant.
  • Don't forget to budget in any renovations, stamp duty, and other fees and costs when calculating whether you can afford a property. 

Yes, you can use the available equity you've built in your own home and put it towards purchasing an investment property. This is a popular way of purchasing an investment property which will result in your having to repay two loans.

If you have any questions about this process, you can chat to one of our helpful lending experts at a branch, or one of our mobile lenders

Rental yield is the difference you make on your investment property minus the costs associated with it.

Net rental yield is calculated by taking your rental income minus costs, then dividing by the property purchase price or market value. For example, ($41,600- $10,000) / $750,000 = 0.042 X 100 = 4.2%  

There's no set benchmark for a good rental yield, but a higher yield (e.g. 8% and above) can offer stronger cash flow, whilst a lower yield (e.g. 4% and below), may offer lower cash flow but may have a better return on investment. 

To help you find the right investment property, you should investigate property data on factors such as suburbs, price trends, and demographics in your target area.

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*Conditions, fees and charges apply to all loans. Subject to meeting Greater Bank's lending criteria.

Greater Bank, part of Newcastle Greater Mutual Group Ltd ACN 087 651 992 Australian Financial Services Licence/Australian credit licence 238273 

Please read our Terms and Conditions for more information. Comparison Rate Schedules are available from your local branch.

At the end of the fixed rate period customers can chose to re-fix their loan for another fixed rate period or let the loan revert to the applicable variable interest rate based on the loan and repayment type.

^ Comparison Rate is based on a $150,000 loan over 25 years. WARNING: This Comparison Rate is true only for the examples given and may not include all fees and charges. Different terms, fees or loan amounts might result in a different Comparison Rate.

~Additional criteria may apply for new investment loans. All new investor Interest Only housing loans, attract a 0.10% p.a. margin above the applicable investor Principal and Interest base rates. All new investor Line of Credit housing loans, attract a 0.10% p.a. margin above the applicable investor Line of Credit base rates. The all up interest rate which includes any margins, will be set out in your credit contract.

At the end of the fixed rate period customers can chose to re-fix their loan for another fixed rate period or let the loan revert to the applicable variable interest rate based on the loan and repayment type.

# Discounted rates include a discount on Home Loans of $150,000 or over and for owner occupied Home Loans with an LVR 80% or below and for investment Home Loan with an LVR 80% or below and apply to new borrowings only. Discounted rate not available for Line of Credit facilities.