When the Reserve Bank of Australia (RBA) made a partial cut to the national cash rate earlier this month, banks and other mortgage lenders slashed their own interest rates, mostly for new customers. This may offer property investors opportunities to refinance onto lower interest rates, and potentially put themselves in better long-term positions.
As well as comparing interest rates, it’s important for property investors to consider the features and benefits of different home loan options. One simple way to manage this is with the help of RateCity’s Real Time Ratings Leaderboards, which rank some of the top home loans for investors and other borrowers:
Best fixed rate P&I investor home loans
A growing number of banks and mortgage lenders have chosen to cut their fixed interest rates rather than their variable rates following the RBA’s partial cash rate cut at the start of November. As such, property investors that can fulfil the eligibility criteria of the loans could be in a position to lock in a low rate for a few years while they bring their finances back under control in 2021 and beyond.
Three-year fixed rate P&I investor home loans
Five-year fixed rate P&I investor home loans
Best variable rate home loans for investors
While many of Australia’s mortgage lenders responded to the RBA’s cash rate cut by only slashing rates on their fixed-rate deals, that doesn’t mean that variable rate mortgages are off the table for property investors. Discounted variable rate investor loans are available, many offering flexible features such as extra repayments, redraw facilities, or offset accounts:
Best interest-only investor home loans
While consumer sentiment is surging and some economists forecast a strong economic recovery, some investors may still prefer to minimise their mortgage payments where possible. Choosing an interest-only mortgage means you won’t be paying down your loan principal, which could cost you more interest over the long term, but it could also help to keep your budget under control for a limited time, especially if you also choose a fixed interest rate.