Between falling rents and rising vacancies in some capital cities, it’s a challenging time to be a property investor. Whether you’re applying for a new investment loan or are refinancing an existing loan, you can expect extra scrutiny from banks and mortgage lenders, requiring extra time and paperwork.
It’s important for investors to carefully compare different home loan options before applying for an investment mortgage. To help save you some time and effort, here are some of the top-rated home loans for investors in August 2020, according to RateCity’s Home Loan Leaderboards:
(Rankings are correct at the time of publishing. Please note lenders may trade places on the list as interest rates and fees change and RateCity’s tracker reflects these movements.)
Best variable rate home loans for investors
Several mortgage lenders have been slashing variable home loan interest rates in recent months. While home loans for investors often have higher interest rates than those of owner occupiers, there are still a range of deals to consider, including options that offer cashback rewards or access to flexible mortgage features like offset and redraw.
Best interest-only home loans for investors
Interest-only loans often appeal to property investors, as the smaller repayments can help them minimise their ongoing costs and better manage their investments. However, much like taking a mortgage holiday, an interest-only period is strictly temporary, and could lead to the loan costing more in total over the long term.
Best fixed-rate investor home loans
When times are uncertain, some investors choose to lock in a fixed interest rate on their mortgage. This means that even if your lender’s variable interest rates rise or fall, you can keep making the same consistent repayments for up to five years, and enjoy simpler, more straightforward budgeting. This can be welcome for a busy investor when they’re managing their personal finances.