If your investment loan rate has recently increased or it has been a while since you had it reviewed, you may want to get an investment loan review to check if there are any better options available.
If you have been ignoring the chatter in the media about property prices and investment lending, you may not be aware that the Government Banking Regulator (Australian Prudential Regulatory Authority or APRA) has been putting pressure on the banks to curb their investment lending if they have their investment loan books growth above 10%.
The offending banks and even some banks that were not above APRA’s 10% investment loan growth limit have responded in a number of ways:
Not all offending banks are doing all of the above.
Yes, there are still good investment loan interest rates available! Not all lenders have exceeded APRA’s 10% investment loan growth limit and some lenders are still actively competing to get your investment loan. These other lenders are still offering competitive investment property interest rate, fee and feature packages.
As for every property investor, it is important to have a competitive interest rate on an investment loan. If you are paying more interest than the rental income, negative gearing may make up some of the difference but even with negative gearing you are still paying money out of your own pocket. This can impact on your ability to make further investments and/or your lifestyle. Let’s face it, no one wants to pay more than they need to on their loan, least of all property investors who are investing to make money.
Yes, higher loan to value ratio investment loans are still available! Some lenders are also still offering higher loan to value ratio loans 90% or up to 95% LVR exclusive of lenders mortgage insurance for investment properties.
Find out more about higher LVR investment loans
With the recent lending changes some banks have stopped offering higher loan to value ratio loans for property investors. Other lenders are still happy to lend at higher LVRs up to 90% or 95%.
If your investment loan rate recently went up then you should get your investment loans reviewed by finance professionals that understand investment loans. Mortgage brokers must know which lenders have the best investment loan rates now. Furthermore, these brokers should be able to assist you to switch your investment loan portfolio to where there is a better loan package from another lender. If you have one or more investment properties, seek out investment loan specialists who can review your loan portfolio to identify if they can get you a better loan(s). If you also have an owner-occupied home loan, these people should be finance professionals to check and see if there is something better available for that also.
Go with professionals who do not charge you for the review. If they cannot find any better options then there is no loss to you. However, if there’s no one offering pro bono review, do make sure you are confident that you are not being ripped off. If they can find you better options, then it could save you a lot of money.
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