Westpac

Fixed Rate Investment Property Loan

Advertised Rate

2.79

% p.a

Fixed - 1 year

Comparison Rate*

5.04

% p.a

Maximum LVR
90%
Real Time Rating™

1.86

/ 5
Monthly Repayment

$1,390

based on $300,000 loan amount for 25 years at 2.79%

Advertised Rate

2.79

% p.a

Fixed - 1 year

Comparison Rate*

5.04

% p.a

Maximum LVR
90%
Real Time Rating™

1.86

/ 5
Monthly Repayment

$1,390

based on $300,000 loan amount for 25 years at 2.79%

Calculate your repayments for this loan

I'd like to borrow

$

Loan term

years

Your estimated repayment

$1,390

based on $300,000 loan amount for 25 years at 2.79%

Westpac home loans are available through brokers who can help find the right loan and manage your application at no charge.

Daniel Tetlaw

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I enjoy working with clients to understand their goals and deliver great outcomes for their unique situations. This requires flexibility, dotting every ‘i’, crossing every ‘t’, and striving to over deliver on my clients’ needs and expectations.

Response time: in 18 days | Our brokers call during business hours between 9.00am to 6.00pm.

Bianca Dacic

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Loan-Savvy is committed to helping you find the right financial solution. Whether you are looking to purchase your first home, expand your investment portfolio or refinance your existing mortgage. We are a qualified Finance Brokerage, located in the Caroline Springs area of Victoria. Possessing industry experience, knowledge and contacts, to help you secure the right loan for your circumstance. Loan-Savvy is dedicated to your financial goals and always has your best interest in mind. We will take the time to understand your goals and assist with structuring a loan appropriately inline with your financial goals. We takes the stress out of the process and allow you to focus on the important things in life. Loan-Savvy facilitates all the available options, allowing you to make an informed decision in choosing the correct lending product.

Response time: in 32 minutes | Our brokers call during business hours between 9.00am to 6.00pm.

Matthew Hayes

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Matthew grew up in Canberra, graduating from Erindale College. As part of the Talented Sports Program for Rugby Union, Matthew developed skills in planning, preparation and execution, skills which he utilises as a mortgage broker to help his clients reach and attain their goals. Matthew is friendly and professional, always ensuring his time with you is stress free and pleasant. He does the hard work for you, helping you find the loan which suits you best. Matthew is dedicated to providing his clients with the best possible service, accommodating you at any time, any location, any day of the week.

Response time: in 32 minutes | Our brokers call during business hours between 9.00am to 6.00pm.

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Quick home loan review

For Fixed Rate Investment Loan (Principal and Interest) 1 Year

These are the benefits of this home loan.

  • Lower than average interest rate
  • Parents can sign as guarantor
  • Extra repayments and redraw facility
  • Free redraw facility
  • Split account option

These are the drawbacks of this home loan.

  • Limited extra repayments
  • No offset account
  • Loan reverts to higher rate after fixed period
  • Ongoing fee
  • Higher than average upfront fee
  • Discharge fee at end of loan

Home loan overview

For Fixed Rate Investment Loan (Principal and Interest) 1 Year

Details

Maximum LVR

90%

Total Repayments

Next LVR

Interest rate type

Fixed - 1 year

Borrowing range

Suitable for

Investors

Loan term range

1 - 30 years

Principal & interest

Interest only

Applicable states

ACT, NSW, NT, QLD, SA, TAS, VIC, WA

Make repayments

Fortnightly, Monthly, Weekly

Features

Extra repayments

Yes - limited to $30000

Redraw facility

Redraw fee: $0

Split interest facility

Loan portable

Repayment holiday available

Allow guarantors

Available for first home buyers

Fees

Total estimated upfront fees

$600

Application fee

$600

Valuation fee

$0

Settlement fee

$0

Other upfront fee

$0

Ongoing fee

$8 monthly

Discharge fee

$350

Application method

Online

Phone

In branch

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FAQs

What is a fixed home loan?

A fixed rate home loan is a loan where the interest rate is set for a certain amount of time, usually between one and 15 years. The advantage of a fixed rate is that you know exactly how much your repayments will be for the duration of the fixed term. There are some disadvantages to fixing that you need to be aware of. Some products won’t let you make extra repayments, or offer tools such as an offset account to help you reduce your interest, while others will charge a significant break fee if you decide to terminate the loan before the fixed period finishes.

What is 'principal and interest'?

‘Principal and interest’ loans are the most common type of home loans on the market. The principal part of the loan is the initial sum lent to the customer and the interest is the money paid on top of this, at the agreed interest rate, until the end of the loan.

By reducing the principal amount, the total of interest charged will also become smaller until eventually the debt is paid off in full.

What are the different types of home loan interest rates?

A home loan interest rate is used to calculate how much you’ll pay the lender, usually annually, above the amount you borrow. It’s what the lenders charge you for them lending you money and will impact the total amount you’ll pay over the life of your home loan. 

Having understood what are home loan rates in general, here are the two types you usually have with a home loan:

Fixed rates

These interest rates remain constant for a specific period and are a good option if you’re a first-time buyer or if you’re looking for a fixed monthly repayment. One possible downside of a fixed rate is that it may be higher than a variable rate. Also, you don’t benefit from any lowering of interest rates in the market. On the flip side, if rates go up, your rate won’t change, possibly saving you money.

Variable rates

With variable interest rates, the lender can change them at any time. This change can be based on economic conditions or other reasons. Changes in interest rates could be beneficial if your monthly repayment decreases but can be a problem if it increases. Variable interest rates offer several other benefits often not available with fixed rate home loans like redraw and offset facilities and free extra repayments. 

How do I refinance my home loan?

Refinancing your home loan can involve a bit of paperwork but if you are moving on to a lower rate, it can save you thousands of dollars in the long-run. The first step is finding another loan on the market that you think will save you money over time or offer features that your current loan does not have. Once you have selected a couple of loans you are interested in, compare them with your current loan to see if you will save money in the long term on interest rates and fees. Remember to factor in any break fees and set up fees when assessing the cost of switching.

Once you have decided on a new loan it is simply a matter of contacting your existing and future lender to get the new loan set up. Beware that some lenders will revert your loan back to a 25 or 30 year term when you refinance which may mean initial lower repayments but may cost you more in the long run.

Will I have to pay lenders' mortgage insurance twice if I refinance?

If your deposit was less than 20 per cent of your property’s value when you took out your original loan, you may have paid lenders’ mortgage insurance (LMI) to cover the lender against the risk that you may default on your repayments. 

If you refinance to a new home loan, but still don’t have enough deposit and/or equity to provide 20 per cent security, you’ll need to pay for the lender’s LMI a second time. This could potentially add thousands or tens of thousands of dollars in upfront costs to your mortgage, so it’s important to consider whether the financial benefits of refinancing may be worth these costs.

Is there a limit to how many times I can refinance?

There is no set limit to how many times you are allowed to refinance. Some surveyed RateCity users have refinanced up to three times.

However, if you refinance several times in short succession, it could affect your credit score. Lenders assess your credit score when you apply for new loans, so if you end up with bad credit, you may not be able to refinance if and when you really need to.

Before refinancing multiple times, consider getting a copy of your credit report and ensure your credit history is in good shape for future refinances.

Does Australia have no cost refinancing?

No Cost Refinancing is an option available in the US where the lender or broker covers your switching costs, such as appraisal fees and settlement costs. Unfortunately, no cost refinancing isn’t available in Australia.

Will I be paying two mortgages at once when I refinance?

No, given the way the loan and title transfer works, you will not have to pay two mortgages at the one time. You will make your last monthly repayment on loan number one and then the following month you will start paying off loan number two.

If I don't like my new lender after I refinance, can I go back to my previous lender?

If you wish to return to your previous lender after refinancing, you will have to go through the refinancing process again and pay a second set of discharge and upfront fees. 

Therefore, before you refinance, it’s important to weigh up the new prospective lender against your current lender in a number of areas, including fees, flexibility, customer service and interest rate.

Can I refinance if I have other products bundled with my home loan?

If your home loan was part of a package deal that included access to credit cards, transaction accounts or term deposits from the same lender, switching all of these over to a new lender can seem daunting. However, some lenders offer to manage part of this process for you as an incentive to refinance with them – contact your lender to learn more about what they offer.

When does Commonwealth Bank charge an early exit fee?

When you take out a fixed interest home loan with the Commonwealth Bank, you’re able to lock the interest for a particular period. If the rates change during this period, your repayments remain unchanged. If you break the loan during the fixed interest period, you’ll have to pay the Commonwealth Bank home loan early exit fee and an administrative fee.

The Early Repayment Adjustment (ERA) and Administrative fees are applicable in the following instances:

  • If you switch your loan from fixed interest to variable rate
  • When you apply for a top-up home loan
  • If you repay over and above the annual threshold limit, which is $10,000 per year during the fixed interest period
  • When you prepay the entire outstanding loan balance before the end of the fixed interest duration.

The fee calculation depends on the interest rates, the amount you’ve repaid and the loan size. You can contact the lender to understand more about what you may have to pay. 

When do mortgage payments start after settlement?

Generally speaking, your first mortgage payment falls due one month after the settlement date. However, this may vary based on your mortgage terms. You can check the exact date by contacting your lender.

Usually your settlement agent will meet the seller’s representatives to exchange documents at an agreed place and time. The balance purchase price is paid to the seller. The lender will register a mortgage against your title and give you the funds to purchase the new home.

Once the settlement process is complete, the lender allows you to draw down the loan. The loan amount is debited from your loan account. As soon as the settlement paperwork is sorted, you can collect the keys to your new home and work your way through the moving-in checklist.

What are the features of home loans for expats from Westpac?

If you’re an Australian citizen living and working abroad, you can borrow to buy a property in Australia. With a Westpac non-resident home loan, you can borrow up to 80 per cent of the property value to purchase a property whilst living overseas. The minimum loan amount for these loans is $25,000, with a maximum loan term of 30 years.

The interest rates and other fees for Westpac non-resident home loans are the same as regular home loans offered to borrowers living in Australia. You’ll have to submit proof of income, six-month bank statements, an employment letter, and your last two payslips. You may also be required to submit a copy of your passport and visa that shows you’re allowed to live and work abroad.

Cash or mortgage – which is more suitable to buy an investment property?

Deciding whether to buy an investment property with cash or a mortgage is a matter or personal choice and will often depend on your financial situation. Using cash may seem logical if you have the money in reserve and it can allow you to later use the equity in your home. However, there may be other factors to think about, such as whether there are other debts to pay down and whether it will tie up all of your spare cash. Again, it’s a personal choice and may be worth seeking personal advice.

A mortgage is a popular option for people who don’t have enough cash in the bank to pay for an investment property. Sometimes when you take out a mortgage you can offset your loan interest against the rental income you may earn. The rental income can also help to pay down the loan.

Why does Westpac charge an early termination fee for home loans?

The Westpac home loan early termination fee or break cost is applicable if you have a fixed rate home loan and repay part of or the whole outstanding amount before the fixed period ends. If you’re switching between products before the fixed period ends, you’ll pay a switching break cost and an administrative fee. 

The Westpac home loan early termination fee may not apply if you repay an amount below the prepayment threshold. The prepayment threshold is the amount Westpac allows you to repay during the fixed period outside your regular repayments.

Westpac charges this fee because when you take out a home loan, the bank borrows the funds with wholesale rates available to banks and lenders. Westpac will then work out your interest rate based on you making regular repayments for a fixed period. If you repay before this period ends, the lender may incur a loss if there is any change in the wholesale rate of interest.

How long does Westpac take to approve a home loan?

Applying for a home loan at Westpac is fairly simple. The process from initial application to settlement varies in its time frame. Some customers receive in-principle approval within a couple of days. 

You can initiate the process by filling out the bank’s home loan form and requesting a callback. A Westpac representative will get in touch with you within 24 hours. You will need to provide the following information to the representative during the call: 

  • Total income
  • Total expenses
  • Details about all your liabilities and debts
  • Information and value of all your assets. 

The Westpac representative will then share with you information about the types of home loans you may qualify for, along with an estimate of interest rates and applicable fees. 

Once Westpac has received all your details, loan preferences, and documents, the representative will assess all the information. If everything is in order, you may receive an Approval in Principle (AIP) within 2 working days. This specifies the amount Westpac is willing to offer for your home loan. 

Your Approval in Principle will often remain valid for only 90 days and if you don’t find a suitable property within that time frame, you need to apply for a renewal on your Approval in Principle. In this circumstance, if the Westpac representative confirms that there are no changes in your financial circumstances, your Approval can be extended for another 90 days. 

After you have found a home that matches the Approval in Principle, you will need a confirmed contract of sale before Westpac initiates the loan settlement. This process takes about 4-12 weeks or 2-5 days if you’re refinancing. 

How do I apply for Westpac’s first home buyer loan?

If you’re a first home buyer looking to apply for a home loan with Westpac, they offer an online home loan application. They suggest the application can be completed in about 20 minutes. Based on the information you provide, Westpac will advise you the amount you can borrow and the costs associated with any possible home loan. 

You can use Westpac’s online mortgage calculators to estimate your borrowing power. You can also work out the time it might take to save up for the deposit, and the size of your home loan repayments

When applying for a home loan with Westpac, you’re assigned a home finance manager who can address your concerns and provide information. The manager will also offer guidance on any government grants you may be eligible for. 

How to apply for a pre-approval home loan from Westpac?

To ensure that you find the right type of property, it’s a good idea to get pre-approval on your home loan. This helps you to know the maximum amount you’ll be able to borrow from the lender. Westpac offers “Approval in Principle”, which allows you to look for properties and narrow your search based on the amount you can borrow. 

You can apply for a Westpac pre-approval home loan by requesting a callback, applying online or visiting your local branch. Westpac will take some basic details about your income and debt to help them with their decision. Based on this information, Approval in Principle will be given and is valid for 90 days from when it is approved. You can request an extension or renewal of the Approval in Principle if you don’t find a property within 90 days. Provided that there is no change in your financial situation, your approval will be extended for another 90 days.

Does Westpac offer loan maternity leave options?

Having a baby or planning for one can bring about a lot of changes in your life, including to the hip pocket. You may need to re-do the budget to make sure you can afford the upcoming expenses, especially if one partner is taking parental leave to look after the little one. 

Some families find it difficult to meet their home loan repayment obligations during this period. Flexible options, such as the Westpac home loan maternity leave offerings, have been put together to help reduce the pressure of repayments during parental leave.

Westpac offers a couple of choices, depending on your circumstances:

  • Parental Leave Mortgage Repayment Reduction: You could get your home loan repayments reduced for up to 12 months for home loans with a term longer than a year. 
  • Mortgage Repayment Pause: You can pause repayments while on maternity leave, provided you’ve made additional repayments earlier.

When applying for a home loan while pregnant, Westpac has said it will recognise paid maternity leave and back-to-work salaries. All you need is a letter from your employer verifying your return-to-work date and the nature of your employment. Your partner’s income, government entitlements, savings and investments will may help your application.

Do the big four banks have guarantor home loans?

Yes, ANZ, Commonwealth Bank, NAB and Westpac all offer guarantor home loans. These mortgages are also offered by many other banks, credit unions and building societies.