In anticipation of the Reserve Bank of Australia's first monetary policy announcement this year, Westpac announced cuts of up to 50 basis points in its investment loans to fixed rate.
The modifications apply to all conditions: the flat and non-flat rates for the main and interest options (P&I) and only for interest (IO) have been reduced. A loan to value ratio of up to 80% is required for these offers.
Westpac's five-year fixed investment P&I loan now has a fixed rate of 3.19%, compared to 3.69%. Meanwhile, the five-year fixed rate for IO loans has been reduced to 3.39%.
The table below shows the modifications made to the fixed rates of P&I and IO investors from Westpac. The comparison rates are calculated on the basis of a loan amount of $ 150,000 for an overall loan term of 25 years.
Fixed rate investment loans Westpac – P&I (Premier Advantage Package)
Fixed term
New rate
Old rate
Comparison rate
One year
3.19%
3.69%
4.40%
Two years
3.09%
3.28%
4.31%
Three years
3.09%
3.28%
4.23%
Four years
3.19%
3.69%
4.19%
Five years
3.19%
3.69%
4.12%
Fixed Rate Investment Loans Westpac – IO (Premier Advantage Package)
Fixed term
New rate
Old rate
Comparison rate
One year
3.39%
3.79%
4.65%
Two years
3.29%
3.49%
4.54%
Three years
3.29%
3.49%
4.46%
Four years
3.39%
3.79%
4.41%
Five years
3.39%
3.79%
4.35%
Westpac appears to be strengthening its presence to attract more investors. Figures from the Australian Bureau of Statistics show that the investor segment experienced the strongest loan growth in the past 12 months in November.
This growth is consistent with other indicators pointing to the early stages of the housing market recovery from the recession, said Master Builders chief economist Shane Garrett.
"The renewed enthusiasm of investors for Australian housing is the result of a return to solid growth in house prices in key markets as well as more attractive financing conditions stemming from three declines RBA interest rates last year, "he said.
Investor activity and market share is expected to increase this year for several reasons. CoreLogic's research director Tim Lawless said improving prospects for capital gains could attract more investors to the housing market.
"Investors are likely to be motivated by the prospect of capital gain, as well as by the fact that gross rental yields, while generally low, are likely to be greater than the cost of debt, "he said.
Economists are planning further rate adjustments, with the RBA making its first decline for the year at its meeting next month. With this outlook for Australia’s interest rates, investors will likely see more opportunities for positively oriented properties, said Lawless.
Top suburbs:
Campsie
,
willliamstown
,
Padbury
,
Gladesville
,
lambton north
Get help with your investment property
Do you need help finding the right loan for your investment?
When investing in a property, it is important to make sure that you not only have the lowest available rate you can get, but also
Just fill in some details below and we will then arrange for a local Australian mortgage broker to contact you and determine the features or types of loans that suit your needs. We will even help you with the paperwork. In addition, an appointment is free.
We value your privacy and treat all of your information seriously – you can check
our privacy policy here
