Recent statistics show that home lending recently hit an all-time high. But it wasn’t owner occupiers and first home buyers driving these figures – rather, it was investors and refinancers.
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.
Some of the best variable investor home loans
Figures from the Australian Bureau of Statistics (ABS) for May 2021 show that while Australia’s number of first home buyers dropped for the fourth month in a row, and owner-occupier lending saw only moderate month on month gains, investor lending was found to have hit its highest level since June 2015.
Some of the best 3 and 5 year fixed investor loans
Many of the major banks have started raising rates on their fixed home loans, in anticipation of a cash rate increase from the RBA that’s forecast for 2024 (though some are predicting it could arrive as early as 2022). While it may not be as easy for investors to lock in a low interest rate as it used to be, there are still affordable investor mortgage options to choose from, both for three-year and five year fixed terms.
3-year fixed investor home loans
5-year fixed investor home loans
Some of the best interest only investor loans
Recent lockdowns in several Australian capital cities have seen several banks and other mortgage lenders re-introduce financial relief options for eligible customers. While taking a mortgage freeze could provide some much-needed breathing room if your income is being affected by the COVID-19 crisis, capitalising your interest like this could make your loan more expensive in the long term.
One alternative option is to switch to interest-only repayments for a limited time. You won’t be reducing your loan principal, so you won’t be getting closer to paying off your property, but your monthly repayments will be lower and you won’t be capitalising your interest.