Some of the top-rated home loans for investors and refinancers in September 2023

Homeowners and property investors may also be relieved to hear that property values around Australia are bouncing back, having experienced a slump earlier in the year. These Australians may be able to maintain or grow the equity in their property, opening options to refinance or access their equity to invest elsewhere.

Big bank economists are forecasting that the cash rate should remain on hold for the rest of the year, though there’s a chance it could rise once more if inflation doesn’t respond quickly enough for the RBA’s liking. The cash rate may even be cut at some point in 2024, which could provide some relief to Australian mortgage prisoners. Choosing a variable interest rate for your investment mortgage could allow you to benefit from future rate cuts, though you also run the risk of paying for future rate hikes.

Investors looking to keep their cash flow under control in an environment of uncertainty may consider fixing their interest rate and making interest-only repayments. Keep in mind that while this can help you pay less on the property in the short term and insulate you from the risk of future interest rate rises, you may also miss out on savings if rates fall in the future. Also, it may not be easy to refinance the mortgage if you come across a better deal, as you may need to budget for break costs.