With some economists predicting that mortgage interest rates could start rising sooner than expected, investors may be looking for ways to lock in the current low rates for longer, or to cut costs on their investment property, or both.
After cutting short-term fixed rates to some of their lowest points earlier in the year, several major banks recently begun to start increasing the rates on these offers, especially for longer fixed terms of four and five years. That said, it’s still possible to lock in a relatively low fixed interest rate on your investment property for three years or less.
As well as locking in the interest charges on your investment mortgage for as long as five years, it’s also possible to only pay the interest costs during this period. This can help to dramatically reduce the cost of your repayments during the interest-only period, leaving more flexibility in your budget.
That said, it’s important to remember that because you’re not reducing your loan principal during an interest-only period, your loan may take longer to pay off over the long term, meaning you may end up paying more in total interest on your property.
To help investors quickly and easily compare options, RateCity’s Leaderboards rank some of the top investor home loans based on their Real Time Ratings™, which combine the cost and flexibility of a home loan into a simple star rating. Top-rated home loans may be eligible for a RateCity Gold Award, so you can see which home loans are some of the leading options in their category.
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.