Across many lenders, home loan interest rates have seen a significant drop over the second half of the year, and Aussie investors are taking the opportunity to pay off their mortgages.
According to the latest Mozo data, the average investment home loan rate is over 0.65% lower than 2018, predominantly due to the three RBA rate cuts that happened in June, July and October of this year.
Your Property Your Wealth director Daniel Walsh says property investors are steering clear of frivolous spending and putting their extra cash towards their home loans.
“Investors with variable mortgages have seen interest rates tumble by one to two percentage points over the past year,” Mr Walsh said.
“Some investors have also opted to refinance now that the lending environment is more favourable to them, which has resulted in their repayments dropping even more.”
RELATED ARTICLE: Why now is the perfect time to pay more on your mortgage
In the 2019 PIPA Investor Sentiment Survey, which was conducted before the latest RBA cut, just over 50% of investors who participated expect to be positively geared in half a decade.
And with another cut to the cash rate expected sometime in the near future, that timeframe for investors could be even shorter!
So if you need to refinance your investment home loan and take advantage of a more competitive interest rate, say hello to a few loans that may help you say goodbye to debt sooner.