Some of the best home loans for investors and refinancers in March 2022

While Australian property prices have been rising at record levels, there have been signs that some areas may have been reaching peaks. Some banks are even forecasting that property values in certain areas could experience declines by the end of next year.

While some first home buyers may be keen to see property prices fall to help improve housing affordability, lower property values could make things more complicated for some property investors and owner occupiers looking to refinance.

Borrowers looking to refinance their mortgage or invest in property may want to consider comparing the available home loan options from RateCity’s Leaderboards, which rank home loans in different categories by their Real Time Ratings™. By combining the cost and flexibility of each loan into a single simple star rating that’s updated every day, it’s easier to get a better idea of the value that different mortgage options may offer.

(Rankings are correct at the time of publishing. Please note lenders may trade places on the list as interest rates and fees change and RateCity’s tracker reflects these movements.)

Some of the best refinance home loans

Whether you’re an owner occupier or an investor, it’s important to consider the equity in your property if you’re planning to refinance. Your equity is the percentage of the property that doesn’t have a mortgage owing on it, which can increase by making principal and interest repayments and/or through capital growth over time. The more equity you have available, the more refinancing options you may be able to choose from.

With average house prices in some areas reportedly starting to peak and even show signs of declining in the future, this could potentially slow the growth of equity for some property owners, or even start to shrink it. Before starting the refinancing process, you may want to order a property value estimate to get an idea of how much equity may be available when the lender makes a formal valuation.

Some of the best variable investor home loans 

Several major banks and mortgage lenders have been raising fixed interest rates and cutting variable rates on their home loans. While some of these cuts have only been for owner occupiers, investors may be able to benefit from lower rates on other offers.

Keep in mind that several banks are also forecasting that the Reserve Bank of Australia (RBA) may start raising the national cash rate late this year, potentially as soon as June 2022. This could see the cost of repayments on your investment property rise, which could affect your investment budget.

Some of the best interest only investor home loans

Investors wanting to keep their costs down during a period of rising rates may consider switching to interest only repayments for a limited time. Of course, this may mean the mortgage takes longer to pay off, and you may pay more total interest over the long term. And if property values stagnate or decline, you may not be able to benefit as much from the property’s capital growth.

Some of the best five year fixed investor home loans

Investors wanting to insulate their budgets from the risk of multiple interest rate rises may be considering locking in a fixed rate mortgage. This could help keep your repayments steady for as long as five years.

Just keep in mind that during the fixed rate term you won’t be able to refinance the loan without paying break fees, which can be expensive.

Compare home loans in Australia