While real estate is traditionally considered a relatively safe asset to invest you money in, job losses have left many tenants struggling to afford rents, while self-isolation and social distancing has affected real estate markets, and in turn house prices. If times are tough as an investor, it may be worth looking into options for refinancing your investment mortgage.
Several banks and mortgage lenders have been slashing interest rates in recent months, so if you have equity available in your investment property to secure a loan, you may be able to apply for a mortgage with a lower interest rate. This can help lower your repayments and relieve some pressure on your budget, potentially putting you in a better position to recover once the economy picks back up.
RateCity’s Home Loan Leaderboards keep track of some of the best mortgage offers for investors, ranked daily based on RateCity’s Real Time RatingsTM system. Here are some of the top-rated investor loans for July 2020 to help you start comparing options.
(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
Investment mortgages with variable interest rates are more likely to offer flexible home loan features such as extra repayments, redraw services, or offset accounts. These features can give you options for managing your repayments, and potentially let you save money on your home loan. Just keep in mind that even if a variable interest rate is low today, the bank may choose to increase interest rates in the future, which could end up costing you more.
Best interest-only investor home loans
Switching your investment mortgage over to interest-only repayments is one way to give your household budget some relief. Just keep in mind that while you’re only paying interest charges on your home loan, you won’t be paying off your property. This can mean your mortgage will take longer to pay off, and you’ll pay more in total interest on your home loan over the long term.
Best fixed-rate principal and interest investor home loans
If you’d appreciate some extra stability in uncertain times, you may want to fix your home loan’s interest rate for some time. This can lock in a low rate for as long as three or even five years, so the repayments on your investment can stay consistent to simplify your budgeting. However, while a fixed rate can protect you from paying extra if your bank raises its variable rates, you could also miss out on interest savings if the bank cuts its variable rates.
Best 3-year principal and interest investor home loans
Best 5-year principal and interest investor home loans