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Outstanding Value Property Investor Home Loans

CANSTAR has released the 2016 ratings for Property Investor Home Loans, rating 360 different loans and revealing five award winners across the country.

 

Are you planning on purchasing an investment property sometime in the near future? If so, this is important news for you. After months of intensive research, CANSTAR has finalised the latest star ratings for Investment Home Loans.

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How did we pick the winners?

Canstar Bank of the year award

Assessing 360 different home loans for investors on price and value, our Research Team investigated the following:

Pricing: Assesses the total cost of the loan including total interest paid over life of loan, and loan fees including refix fee on a fixed rate loan, upfront fees, ongoing fees, and discharge fees.

Repayments: Ability to make Principal and Interest repayments and Interest Only payments.

Facilities available: Redraw Facility, Additional Repayments, Offset Account Facility, Split Loan Facility, Top Up Facility, Portability, Construction Loan.

Equity and security options: What equity can be used to secure loan (house, apartment, townhouse, vacant land, etc.)?

Guarantee options: Can guarantee be made by family and/or non-family; can guarantor provide security and/or deposit; can guarantor limit their liability?

Deposit requirements: Max LVR requirements; can Cross Collateral be used; can LMI and stamp duty be incorporated into loan balance?

Market information and tools provided by lender: Does lender provide information on process of buying an investment property? (e.g. property reports and market statistics; seminars and How To Guides; explanations of council rates, stamp duty and other additional costs that apply; tools and calculators available for property investors such as mortgage calculators, savings calculators.)

Accessibility: How many branches and mobile lenders does the lender have in every state? Can buyers access financial planners, Personal Managers, Buyer’s Agents, Estate Planners, Conveyance and Depreciation Specialists?

Insurance: Availability of Landlord Insurance; Building Cover; Contents Cover; liability cover; loss or default of rental income cover; theft or burglary by tenant cover; malicious damage or vandalism cover; professional tax audit fees cover.
This was done to reveal which home loans offered outstanding value (a 5-star rating) for property investors.

2016 Outstanding Value Winners (5 Stars) – Investor Loans

In this year’s ratings, the award-winning investor home loans were:

National: Bank of the Year – ANZ

ANZ wins 2016 Bank of the Year Property Investor Award• Great product offering, especially for 3-Year Fixed and Variable Principal and Interest loans.
• Family can guarantee a loan for investors, and guarantors can provide security.
• Website is specifically designed for property investors and offers property reports that are updated daily, economic reports, information on strata and council rates and fees, and FAQs for investors.
• Website provides information regarding how stamp duty and other additional costs work.
• A number of different calculators are on the website to help investors evaluate their borrowing options.

NSW, SA, WA: Customer-Owned Institution of the Year – Beyond Bank
Customer Owned Institution of the year

• Great product offering, with loans that have lots of good features, are flexible, and are priced very competitively.
• Family can guarantee a loan for investors, and guarantor can provide deposit and security.
• LMI and stamp duty can be added to the loan balance.
• Loans allow for cross collateralisation.
• Property investors can access property reports, step-by-step guides, and property buying checklists.
• A number of calculators are on their website to help investors evaluate their borrowing options.
• Financial planners and personal managers are available to help property investors.

QLD: Customer-Owned Institution – Heritage Bank
Heritage Bank Customer Owned Institution

• Family can guarantee a loan for investors, and guarantor can provide deposit and security.
• Website provides property reports, information on the process of buying an investment property, an explanation of costs associated with buying a house including stamp duty, council rates and other additional costs, step-by-step guides and property buying checklists.
• A dedicated home loan helpline is available for investors.
• A number of different calculators are on the website to help investors evaluate their borrowing options.

VIC: Customer Owned Institution – Hume Bank
Hume Bank VIC Customer owned institution

• Family can guarantee a loan for investors, and guarantor can provide deposit and security.
• Cross collateralisation is allowed.
• Website provides information on the process of buying a house, and explanations of the costs associated with buying a house including stamp duty.
• Specialist lenders, financial planners, and personal managers are available for property investors.
For more information on how we do our ratings and judge our awards, read our methodology .
For the full star ratings, check out our interactive comparison table.

 

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To the extent that the information in this report constitutes general advice, this advice has been prepared by CANSTAR Research Pty Ltd A.C.N. 114 422 909 AFSL and ACL 437917 (“CANSTAR”). The information has been prepared without taking into account your individual investment objectives, financial circumstances or needs. Before you decide whether or not to acquire a particular financial product you should assess whether it is appropriate for you in the light of your own personal circumstances, having regard to your own objectives, financial situation and needs. You may wish to obtain financial advice from a suitably qualified adviser before making any decision to acquire a financial product. CANSTAR provides information about financial products. It is not a financial provider and in giving you information it is not making any suggestion or recommendation to you about a particular financial product. Please refer to Canstar’s FSG for more information.

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