Demand for investor loans rises to highest level since GFC: RateCity.com.au
The value of investment loans written in February surged to their highest level since the GFC, according to RateCity.com.au analysis of ABS housing finance data.
Investors borrowed $7.9 billion for property investment purchases in February 2013.
This is the highest value of investment loans written in one month since January 2008.
The previous highest value of investment loans written in one month was in June 2007, with over $9.1 billion, according to RateCity.
According to RateCity spokesperson Michelle Hutchison, while the residential home loan market is a much bigger pool of money compared to investment loans – $13.9 billion compared to $7.9 billion – the growth rate in the former is a lot higher.
“In fact, the total value of investment loans grew three-times faster than residential loans (15.4% or $1.05 billion compared to 5.3% or $699 million),” she says.
Analysis of the RateCity.com.au database of home loan providers prepared for Property Observer shows that investors can source loans suitable for property investors starting from as low as 4.99%.
These are the cheapest advertised fixed and variable loans suitable for investment purposes currently on RateCity.com.au (May 3, 2013):
RateCity’s top variable investment loans
Company | Product | Rate |
loans.com.au | Investment Blackboard Special (Purchase Only) | 4.99% |
State Custodians | Investment Peak Performance Offset | 4.99% |
UBank | Investment UHomeLoan (for refinancing) | 5.12% |
eMoney | Investment Pro Pack 75 | 5.20% |
iMortgage | Investment Fusion ProPack Variable 75 | 5.24% |
Pacific Mortgage Group | Investment Variable | 5.27% |
Macquarie Bank | Premium Investment Premium Variable 1000k+ | 5.34% |
Rate Busters | Investment Ultimate | 5.34% |
Newcastle Permanent | Premium Plus Package Investment Premium Variable 250-499k | 5.37% |
HSBC | Premier Investment Variable 1500k+ | 5.40% |
RateCity’s top three-year fixed investment loans
Company | Product | Rate |
ME Bank | Investment SuperMember Fixed 3 years | 4.99% |
AMP Bank | Affinity Package Investment Fixed 3 years 100k+ | 5.04% |
A M O Group | Investment Fixed 3 years | 5.09% |
iMortgage | Investment Fusion Fixed 75 3 years | 5.09% |
ING DIRECT | Investment Fixed 3 years | 5.09% |
CUA | Investment Fixed 3 years | 5.10% |
RESI Mortgage Corp | Investment FlexiFix Plus 75 3 years | 5.12% |
UBank | Investment UHomeLoan Fixed (for refinancing) 3 years | 5.13% |
Source: RateCity.com.au, based on lowest advertised rates, available to the general public, conditions and fees apply.