Do you offer frequent borrower points? Maybe I can get a free toaster after my third investment loan?

Aussie Mortgages: It’s About Rates, Not Toast (Although That Would Be Sweet)

Owning that dream investment property is a cracker of a goal for many Australians, but let’s be fair, lenders aren’t exactly dishing out frequent flyer points or toasters for multiple mortgages. While some banks reward their customers with loyalty programs for everyday banking, applying for investment loans is a different kettle of fish.

Here’s why you won’t find a “frequent borrower” program for snagging kitchen appliances with your third investment loan:

  • Focus on Rates and Risk: Lenders in Australia are primarily concerned with your financial health and the risk associated with the loan. They want to ensure you can comfortably repay the mortgage, so competitive interest rates and loan terms are their main tools to attract borrowers.
  • Regulation: The Australian Prudential Regulation Authority (APRA) keeps a close eye on lending practices to ensure financial stability. Fancy rewards programs could be seen as a way to loosen lending standards, which isn’t on the agenda.
  • It’s a Business Transaction: At the end of the day, investment loans are a business transaction for both you and the lender. You’re looking for the best possible deal on borrowing money, and the lender is looking for a secure return on their investment.

So, what can you do to get the best deal?

  • Shop Around: Don’t just settle for the first lender you come across. Compare interest rates, fees, and loan features from different banks and brokers.
  • Negotiate: Once you’ve found a competitive offer, don’t be afraid to negotiate for a slightly better rate or more favourable terms.
  • Focus on Your Finances: The stronger your financial position – good credit score, healthy deposit, stable income – the better rates you’ll be offered.

While free toasters might not be on the cards, securing a great interest rate on your investment loan can save you a significant amount of money in the long run. That’s a much better reward for any savvy Aussie property investor.