The Smart Investor loans both boast an interest rate of 3.39% p.a. (3.41% comparison rate*), and have no ongoing or monthly fees.
They are both full doc home loans available to investors who have a deposit of at least 20%, up to a maximum loan amount of $1 million.
The only difference between the two new products? One requires principal and interest (P&I) repayments and the other is interest-only (IO).
Despite this, the interest rate is the same for both products, which goes against the typical market practice of charging higher interest rates for IO borrowers.
When comparing similar home loans, loans.com.au’s Smart Investor loans have among the lowest interest rates on the investment home loan market.
| Company | Ad rate p.a. |
Comp rate* p.a. |
Monthly repayments |
|
|---|---|---|---|---|
| 3.39% | 3.41% | $1,772 | More details | |
| 3.49% | 3.54% | $1,793 | More details | |
| 3.66% | 3.70% | $1,850 | More details |
| Ad rate p.a. |
Comp rate* p.a. |
Monthly repayments |
|
|---|---|---|---|
| Smart Investor Home Loan P&I 80% | |||
| 3.39% | 3.41% | $1,772 | |
| More details | |||
| Low Rate Inv Loan w/Offset | |||
| 3.40% | 3.42% | $1,774 | |
| More details | |||
| Achieve Var Inv P&I Special | |||
| 3.49% | 3.54% | $1,793 | |
| More details | |||
| Inv Simplicity Plus P&I Special | |||
| 3.66% | 3.70% | $1,850 | |
| More details | |||
Base criteria of: a $400,000 loan amount, variable, principal and interest (P&I) investment home loans with an LVR (loan-to-value) ratio of at least 80%. Introductory rate products were not considered for selection. Monthly repayments were calculated based on the selected products’ advertised rates, applied to a $400,000 loan with a 30-year loan term. *Rates correct as at 23 September 2019. View disclaimer.
Loans.com.au’s Managing Director Marie Mortimer said the launch of the new loans coincide with increased demand for investment home loans in Spring, as more people look to purchase investment properties or review their current debts this time of year.
“Property investors know that their investment is all about making money and our customers are on the ball when it comes to their rate, and getting a better deal from day one,” Ms Mortimer said.
“Our new loans offer much better value than the big banks so we think they will convince a lot of investors to look beyond their current bank to our offering and really help to drive competition in the market.”
Ms Mortimer also said the fact that the Smart Investor loan offers the same interest rate on both principal and interest and interest-only repayments breaks new ground in the industry.
“As a challenger lender, we have responded to what investors really want from their loans and heard loud and clear that they want to stop paying the ‘big bank premium’ on their investment loan,” Ms Mortimer said.
“Just in time for Spring, this is what we have delivered – two new loans, one P&I and one Interest-only, with a discount to reach a great low rate.”
Loans.com.au released the similarly named Smart Home Loan for owner-occupiers in March, which now has an interest rate starting at 3.03% p.a. (3.05% p.a. comparison rate*).
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