With Australian property prices hitting record highs, and home loan interest rates reaching record lows, it’s no surprise that borrowing and buying activity has been accelerating of late. And it’s not just first home buyers experiencing fear of missing out (FOMO) on low rates, but investors too.
Of course, this frenzy of activity has led to some concern from regulators, who are worried about borrowers taking out risky loans that they may not be able to afford further down the track.
It’s important to remember that as well as looking at a home loan’s interest rate, investors should look at the fees, features and other benefits offered by the mortgage lender to determine if their home loan is the best choice for their financial situation and investment goals.
To provide a faster and simpler way to compare investment loans, RateCity offers its Home Loan Leaderboards, which rank mortgages by their Real Time Ratings™, based on both the cost and flexibility of the loans.
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 investor home loans
Investment mortgages with variable interest rates are more likely to offer flexible features, such as a offset account and redraw facilities. Depending on your financial situation and investment goals, a variable rate investment loan could offer flexible options for managing your repayments.
Best interest only investor home loans
Paying only the interest on a home loan for a limited time may allow an investor to minimise their expenses and maximise the returns on their investment. However, it’s important to remember that an interest-only period will likely make the mortgage take longer to pay off, so you may pay more interest on the property in total.
Best fixed rate investor home loans
With several of the mortgages offering record-low interest rates being fixed-rate options, it’s not surprising that many investors are eager to sign up and enjoy the benefits, such as locking in low repayments for a limited time.
However, it’s important to remember that not every fixed rate home loan will be right for every borrower, and that once the fixed rate term ends, the loan will revert to the lender’s variable rate, which could drastically affect a borrower’s repayments.
Best 3-year fixed investor home loans
Best 5-year fixed investor home loans