Australian Investors hit with higher Interest Rates.

Australian Property Investors Stung By Higher Interest Rates
Property Investors stung by higher interest rates.

Following recent changes to investment lending regulations, we’ve heard the unanimous cry of Australian property investors: “Help! I’ve received the your interest rates have increased letter!”

APRA’s recent changes to investment lending has compelled the big 4 banks to introduce higher interest rates for borrowers with investment lending. This action has left smaller banks and non-bank lenders with an opportunity to provide extremely competitive rates for those who are looking to save on their investment portfolios.

While buoyant markets such as Melbourne and Sydney are leading the charge in investor home loan growth, other markets such as Perth have seen an increase in property listings from 10,295 to 13,970 (37.70% increase) in the preceding year past. As Australia cools off from its resource based economic growth, and transitions into a service sector based economy, the appetite from investor borrowing is also waning in key states such as WA & QLD.

For a typical loan size of $350,000 the average increase in interest rates means borrowers could be forking out an extra $28,860 over the term of their loan (or $962 every year) every year on mortgage repayments. There is some good news for borrowers though, the SwitchMyLoan panel of lenders includes lenders that are not affected by APRA’s restrictions on investment lending who are currently offering incredible competitive rates for borrowers with investment loans.

Get a free quote to start saving across your property portfolio.

Blaize Pengilly

Blaize Pengilly

Money Saving Expert at SwitchMyLoan
Blaize Pengilly

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  • Declan Murphy

    I am working for TheFinanceSite as a home loan advisor. I observed that majority of non bank lenders are family owned businesses who work tirelessly to ensure you get a tailor made home loan product and also offer you great personal service. Which is good I think .. let all earn and the balance should be maintained 🙂