BSB 806 015

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Following the Reserve Bank of Australia's announcement on Tuesday 3 May, we have released information on interest rate changes. View details

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BSB 806 015

Investment property loans

Are you looking to set yourself up with rental income, capital growth, or a retirement nest egg? We have investment property loans with competitive interest rates, interest only repayment options, and redraw facilities to give you the freedom you need.

Choose the property investment loan that's right for you

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Product name

Interest Rate

Comparison Rate

Overview

Establishment fee

Monthly fee

100% offset available

Extra payments allowed

Redraw available

Interest only payment option available

Maximum loan term

Maximum Loan Value Ratio

Minimum loan amount

Loan purpose

 

Variable from 2.29 % p.a. Interest Rate

2.29 % p.a. Comparison Rate

A no frills investment home loan with no application or ongoing fees.

Establishment fee

$0

Monthly fee

$0

100% offset available

Extra payments allowed

Redraw available

Interest only payment option available

Maximum loan term

30 years

Maximum Loan Value Ratio

90% for new and existing members
(inclusive of LMI)

Minimum loan amount

$50,000

Loan purpose

Residential investment

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Variable from 3.23 % p.a. Interest Rate

3.23 % p.a. Comparison Rate

A variable rate investment loan that comes with an optional offset account and no ongoing fees.

Establishment fee

$0

Monthly fee

$0

100% offset available

Extra payments allowed

Redraw available

Interest only payment option available

Maximum loan term

30 years

Maximum Loan Value Ratio

90% for new and existing members
(inclusive of LMI)

Minimum loan amount

$50,000

Loan purpose

Residential investment

Remove

Fixed from 3.29 % p.a. Interest Rate

3.24 % p.a. Comparison Rate

Fix your mortgage payments from 1 to 5 years.

Establishment fee

$0

Monthly fee

$0

100% offset available

Extra payments allowed

Redraw available

Interest only payment option available

Maximum loan term

30 years

Maximum Loan Value Ratio

95% for new & existing for owner occupied (inclusive of LMI)

90% for new & existing for Investment (inclusive of LMI)

Minimum loan amount

$20,000

Loan purpose

Owner occupied and investment

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How can I compare investment home loans?

Use our home loan comparison calculator to see a side by side comparison of our different investment loan products and find out how much you could save.

Alternatively, if you want to find out how much you could save over the life of your loan by making extra repayments or find out how much you could borrow, then take a look at our other home loan calculators.

Get a free online property report

Ready to purchase your investment property?

Building an investment portfolio is both exciting and challenging, and if done right, it can really benefit you in the long run. Investment loans can give you the capital you need to purchase a great investment property and build the passive income you need to enjoy true financial freedom.

If you’re interested in applying for an investment property loan, our Home Loan Specialists will be able to answer any questions you may have, and our mobile lenders can even come to you to help get you started.

We're ready to help

No matter what stage you're at when it comes to your investment property portfolio, we're here to help you from application to settlement. Book an appointment with one of our home loan specialists in a branch, over video call, or we can even come to you at a time that suits.

Need more information? Enquire now.Speak to a lending specialist. Call 13 25 77.Visit a branch. Book appointment.Mobile lender to visit you. Book appointment.

Frequently asked questions

  • What is an investment loan?

    An investment loan works like a standard home loan except that the property is not occupied by the borrower themselves. Instead, the borrower purchases the property to generate a passive income by reselling it, renting it to tenants, or both.

  • What’s the difference between principal and interest repayments and interest only repayments?

    Principal and interest repayments mean that your mortgage repayments are split between paying off the principal amount you borrowed, and the interest owed.

    On the other hand, interest only loan repayments mean that 100% of your repayments are going towards paying off the interest on your mortgage and no debt reduction during the interest only period. Interest only repayments go on for a set period before the loan will automatically change to principal and interest repayments.

    Interest only repayments allow you to pay down your interest owed quickly and enjoy a lower monthly repayment for the first few years after buying the property. For your first investment property, interest only repayments may give you the breathing room you need to get tenants or start working on renovations to your future investment property.

  • Is it difficult to get an investment property loan?

    Whether or not investment property loans are harder to get than home loans for owner-occupiers depends on the buyer’s financial situation. Generally, loans for a property investment have tougher lending criteria because they carry more risk.

    For example, if the buyer is planning to rely on rental income to honour their repayments, there is the risk that they won’t be able to find or keep tenants. This is why for some investment loans, buyers are required to provide evidence of their prior success owning an investment property.

  • Can I use the equity in my current home to buy an investment property?

    Yes, it may be possible to use the existing equity you have accumulated in your home to finance an investment property. Contact us to discuss how much equity you can leverage when applying for one of our investment loans.

  • Is it a good idea to buy an investment property?

    Buying an investment property can be a great way to set up a passive income for yourself, either by renting it to tenants or strategically selling it for a higher price at a later time. As with any financial product, there is always a trade-off, and property investors need to carefully consider their options and have a solid investment strategy.

    For example, a popular strategy for property investors is to purchase a property they predict will increase in value over time, either due to outside factors like nearby infrastructure development or because they will invest in renovations. They may then be able to sell the property for a much higher price than they bought it for later on, giving them a significant return on investment.

    It’s always a good idea to seek professional advice from a property investment consultant to weigh up your options and reduce your risk.

  • What is Lenders Mortgage Insurance?

    You will usually be required to pay Lenders Mortgage Insurance on some loans when you borrow more than 80% of the property’s value (loan to value ratio). This insurance is a form of security deposit that protects the lender if the borrower is unable to make their home loan repayments.

Disclaimer

Credit products issued by Police & Nurses Limited (P&N Bank) ABN 69 087 651 876 AFSL/Australian Credit Licence 240701. Lending criteria, terms & conditions, fees & charges apply. Rates subject to change.

Comparison rate calculated on a loan amount of $150,000 over a term of 25 years based on monthly repayments. For variable Interest Only loans, comparison rates are based on an initial 3 year Interest Only period. For fixed Interest Only loans, comparison rates are based on an initial Interest Only period equal in length to the fixed period. During an Interest Only period, your Interest Only payments will not reduce your loan balance. This may mean you pay more interest over the life of the loan.

WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

View Home Loan Key Fact Sheets

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