Mortgage rates for investors show rising trend: Canstar

Mortgage rates for investors show rising trend: Canstar
Mortgage rates for investors show rising trend: Canstar

Interest rates for investment lending continues to see an upward movement for both principal and interest and interest only mortgages, according to latest data from comparison website Canstar.

There was a 46 basis point difference between the average home loan rate with principal and interest. While the average basic variable rate for owner occupiers  was 4.27 percent, for investors it was 4.73 percent.

For the more popular standard variable rate, the difference was 44 basis points, the data revealed. While for owner-occupiers, the average standard variable rate was $4.48 percent, investors are being charged 4.92 percent on average, the data revealed.

Click to enlarge

 Mortgage rates for investors show rising trend: Canstar

Click to enlarge

Mortgage rates for investors show rising trend: Canstar 

Both comparisons were on a loan size of $350,000 and a loan-to-value ratio of 80 percent. The data was a snapshot of between 31 July and 4 August.

Click to enlarge

Mortgage rates for investors show rising trend: Canstar 

Click to enlarge

Mortgage rates for investors show rising trend: Canstar

Banks have been increasing interest rates in response to higher capital requirements and also to rein-in interest-only lending because of the risks from high household debt.

They have also moved on investor loans after regulatory measures to rein in property prices, especially on the East Coast. 

  

Tags: 
Investor Lending Mortgage Rates

Comments

Be the first one to comment on this article
What would you like to say about this project?