Recently, regulation changes have pushed around home loan and investment loan interest rates. The most affected by these changes was the investment interest rate for interest only repayments. If you are an investor with a desire to manage your cash flow, it has become more costly to maintain your investment loan.
However, did you know, that if you are in a situation where you have your primary residence mostly or completely paid off, you may be able to qualify to have your investment loan set at home loan rates (owner occupier rates).
For example, consider a scenario where John has no mortgage on his own home, his primary place of residence, and it is valued at $1 million. John also has an invesment property valued at $700,000 with an investment loan of $600,000. John will be able to refinance his loan, still as an investment loan, but with owner occupier interest rates - saving him substantially on interest repayments.
Knowing the details of your own personal circumstances enables our brokers to give you tailored, personalised advice. This may include recommendations like the scenario above. With the increasing complexity of home and investment lending it is becoming ever more important to let a qualified finance broker provide you with advice.
All information accurate as at October 2017