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Choosing the right loan

How do I know what is the right loan for me?

A good place to start is by asking yourself what you need in a loan to suit your investment strategy. Do you want to pay interest only, have the certainty of fixed rates, or the flexibility of variable rates?
What if I want to pay interest only?

If you want the option of paying interest only on your loan – good news! All of our investment loans offer this option.

Interest only loans are ideal if you want to:

  • Free up the principal component to use for other investments, as interest is the only part of the repayment that can be claimed as a tax deduction
  • Free up your cash flows for other investment opportunities
  • Obtain short term finance where you wish to buy a new property before selling an existing home
  • Gain exposure to the property market with lower ongoing servicing costs.

We also offer the option of paying interest only in advance. This option is available on our Fixed Rate Investment Property Home Loan.

This allows you to prepay interest 12 months in advance and get a discount off the standard fixed interest rate. And, it may allow you to take advantage of potential tax benefits. To learn more about interest only loans and investment strategies read our article Strategies for property investors.

Review your options

I want to know what my repayments will be

If you want certainty against interest rate rises, you can take out a competitive Fixed Rate Investment Property Home Loan for a certain period. This can help you to budget for your repayments. If interest rates go up, you’ll benefit as you’ll still be paying at the lower rate. However, if interest rates drop, you’ll be paying more.

When your fixed rate period expires you have the choice of refixing, or taking up a variable rate loan or a combination loan.
I want to have maximum flexibility

If you want maximum flexibility, we have a range of variable rate investment loans. Which all offer:

  • Redraw 1 - accessing extra money you’ve built up in your loan
  • Extra repayments 1 - the ability to make extra repayments to reduce interest payments
  • Interest only repayments 1 - allows you to pay only the interest component on your loan, therefore reducing the monthly commitment

Review your options:

Compare our Variable Rate Investment loans

I want to have the best of both world

A combination loan allows you to combine the security of a fixed rate with the flexibility of a variable rate loan and, or, a line of credit (Equity Access Loan).

It works like this:

You can split your loan into two parts, one fixed and one variable – you choose the proportions.

  • On the fixed rate part, you'll be protecting yourself from the full impact of potential rate rises during the selected term
  • On the variable rate part, you'll be able to repay extra without penalty, and access other flexible features.

For more information, read up on our Combination Loan.

Things you should know

The information contained within this page is general in nature. It serves as a guide only and does not take into account your personal financial needs. Before you act on this information you should seek independent legal and financial advice. Terms and Conditions apply and are available on request. Application subject to normal credit criteria and approval.

1. A redraw request is subject to approval. A redraw fee applies. Subject to bank approval. A redraw fee may apply.