Some of the best investor home loans for January 2021

While much of the record levels of borrowing activity at the end of last year came from owner occupiers, including first home buyers, interest rates have also fallen for investor loans.

According to RateCity research, the average variable investor home loan interest rate (paying principal and interest) fell from 3.75 per cent in September to 3.67 per cent in December 2020.

But it’s not just interest rates that have been affecting Australia’s investment property market. House rents rose last year while unit rents fell, with fewer overseas travellers and greater levels of unemployment pushing down demand. And while property prices have reportedly been recovering (especially in the regions), some investors may be looking to refinance to a mortgage that better suits their changed financial situation.

To help investors get a better idea of which mortgage offers may best suit their needs, RateCity’s home loan leaderboards have ranked some of the top options for investors, based on their Real Time Ratings™:

(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.)

Best variable rates for investors

Variable interest rates tend to offer investors plenty of flexibility, often allowing borrowers to benefit from features such as a redraw facility or an offset account. Depending on your financial situation and your investment goals, a mortgage with the right features and benefits may ultimately prove more valuable than one with a lower interest rate.

Best interest only investor loans

Investors seeking to minimise their monthly repayments may be interested in an interest-only mortgage. Because you’ll only pay the interest charges on your investment property, it may be possible to maximise your returns during the interest-only period. Just keep in mind that you could end up paying more in total interest on a property with an interest-only loan, compared to a principal and interest mortgage.   

Best fixed rate investor loans

Want to lock in a low rate on an investment property? This could keep your payments consistent for a few years, which could be welcome for simplifying your budget in uncertain times.

Best 3-year fixed rate investor loans

Best 5-year fixed rate investor loans

Compare home loans in Australia