Westpac Fixed Rate Investment Loan

Interest rates in Australia have been rising steadily since October 2009 and are predicted to continue to rise in the short term. Buyers of investment property who are keen to secure a home loan before interest rates rise too much further will be interested in the Fixed Rate Investment Property Loan offered by Westpac.

Westpac Fixed Rate Investment Property Loan

Westpac has a fixed rate investment home loan that allows you to lock in a competitive rate of interest for up to 12 years. Currently interest rates offered on the Westpac Fixed Rate Investment Property Loan are:

• Fixed rate for 1 year 6.39%
• Fixed rate for 2 years 6.39%
• Fixed rate for 3 years 6.39%
• Fixed rate for 4 years 7.19% p.a
• Fixed rate for 5 years 6.89%
• Fixed rate for 6 years 8.19% p.a.
• Fixed rate for 7 years 8.19% p.a.
• Fixed rate for 9 years 8.19% p.a.
• Fixed rate for 10 years 8.19% p.a.
• Fixed rate for 12 years 8.39% p.a.

The features and benefits of Westpac Fixed Rate Investment Property Loan

Fixed interest rate home loans appeal to home buyers who want some protection from interest rate rises. If you want repayment amounts on an investment property loan to be predictable, either because you can’t afford higher monthly repayments or because you want to be able to plan your budget in advance, a fixed interest loan may be the best type of loan for you.

Buyers who have studied the money market and calculate that interest rates are likely to rise are also attracted to fixed rate loans at times when interest rates are comparatively low. The main features of the Westpac Fixed Rate Investment Property Loan are:

• Fixed rates for 1 to 7, 9, 10 or 12 years, allowing you budgeting certainty over the fixed term. At the end of the fixed period you may choose either to refix for another period or convert to Westpac Variable Rate Investment property Loan.
• Loan splitting option allows part of the loan on variable interest rate terms, offering savings on interest and lower repayments at times when interest rates are low.
• Interest rate discount of 0.2% available on loans over $150,000 when you take out a home loan package. The Westpac Premier Advantage Package has an annual cost of $395 and has the potential to save thousands of dollars each year, with discounted service fees for savings accounts and credit cards and bonuses and discounts on a range of superannuation and insurance products.
• Fixed rate lock in facility allows you to secure the interest rate so that you are protected from rises in interest rates for 90 days from the loan application date.
• Extra payments are allowed into your loan account, up to $25,000 per fixed rate term without charge. If you are likely to have extra funds from tax refunds or work bonuses, they can be applied to your home loan, shortening the loan term and saving on interest over the length of the loan.
• Extra payments can be redrawn. The redraw facility allows you fee-free same day access to any repayments in your loan account.
• Progress draws for construction. If you are having a house built, you can make progress payments to the builder by drawing down funds. This arrangement allows you to minimise the cost of interest by releasing the funds progressively during the first 12 months of the loan.
• Interest only option allows repayments of interest only rather than principal and interest. This option is available for loan terms up to 10 years and is attractive to buyers of investment properties who wish to minimise the ongoing cost of the loan.
• Interest only in advance option gives a discount off the standard fixed interest rate, and may also provide tax savings.
• Flexible repayments on a weekly, fortnightly or monthly basis are available for principal and interest loans.
• Low doc option is available. Self-employed home buyers who don’t have documented proof of income may submit low doc applications.
• Who is eligible for the loan? Buyers of investment properties wishing to borrow between $15,000 and $10,000,000 for up to 30 years may apply for the loan.
• What are the fees and charges? For standard loans there is an up-front establishment fee of $600 and a monthly loan maintenance fee of $8. If you have chosen a Premier Advantage Package, establishment fees and monthly fees are waived for standard loans and on low doc loans monthly fees are waived and establishment fees are reduced to $355.

A Fixed Rate Investment Property Loan offers the budgeting security of a fixed rate loan together with flexible loan features giving the investor a wide choice of options to maximise the return on investment.