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.
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.
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.