Posted on August 5, 2021
Thinking about Property Investment?
It has never been cheaper to borrow money in Australia
Investment loan rates today are extremely competitive. Thanks to low interest rates and the many choices available to help you build your portfolio, if you are thinking of investing in property now is the perfect time to do so.
In response to the Reserve Bank’s decision to keep the cash rate steady at the all-time low of just 1.75%, financial providers and banks are passing on the benefits to people both looking to buy a home to occupy or as an investment.
According to Mozo, most providers cut their loan rates during May 2016 in response to the cash rate reduction and have kept them steady in June. Commonwealth Bank, for example, have taken their Extra Home Loan down from 4.92% to 4.51% for investors.
When it comes to finding the right loan for your investment, it’s important to do your homework and have a thorough understanding of how investment property mortgages, such as the Extra Home Loan (investment) option from the Commonwealth Bank, work.
Investment property mortgages are designed to provide a solid option for a range of investment borrowers who are looking to purchase a unit, house, land or commercial property.
There are many investment property mortgages available, each of which offer their own benefits and fees. Many savvy investors opt for a fixed rate home loan for their investment property and there are a number of reasons that they make this choice:
- Fixed interest rate home loans present an easier way for you to manage your investment as they offer consistent and unmovable repayments.
- This type of loan also doesn’t fluctuate with the cash rate market, so you are guaranteed your repayments will remain the same, making it easier to calculate your costs and profits.
- Fixed rate home loans generally have a higher interest rate than variable rate home loans, however because most investors purchase property for a shorter term (five to ten years) and then sell it off (using the sale price to pay off the remaining loan), the impact is less.
Most importantly, when it comes to finding the right loan to complement your Hayman Homes investment property, it’s essential to think about your unique circumstances and requirements.
Investment property loan rates change regularly, so make sure you do your research or speak with a financial advisor to find out what option will work best for you.
RateCity provide an online, easy way to compare some of the investment property mortgages available through a range of lenders.Click here to see what options are available.
Any advice and information in this blog is general only, and has been prepared without taking into account your particular circumstances and needs. Before acting on any advice on this website you should assess or seek advice on whether it is appropriate for your needs, financial situation and investment objectives.