Investors take advantage of low home loan rates to pay down mortgage debt

Investors celebrating their low rate mortgage content

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.

Hot investor home loans

Athena Liberate Variable Home Loan
  • 3.24% variable rate (3.20% comparison rate*)

  • No fees

  • Extra repayments and redraw facility

If you need a flexible and competitive investment home loan, Athena may have just what you need. The Athena Variable Home Loan has an attractive 3.24% variable interest rate (3.20% comparison rate*) as well as no fees - that’s right, no extra upfront or ongoing costs for the life of the loan. And if you prefer to pay your loan back in your own way, choose from weekly, fortnightly or monthly repayments with the option to make complimentary extra repayments and redraw them if you need to. Smart Home Loan
  • 3.19% variable rate (3.21% comparison rate*)

  • Complimentary extra repayments

  • No ongoing fees

The Smart Loan offered by not only has a competitive 3.19% variable rate (3.21% comparison rate*), it also has a couple of handy features that could help you pay back your loan in the way you want to. With complimentary extra repayments and the addition of a redraw facility, you can put more towards your loan when you want to and if you find yourself strapped for cash, redraw your extra contributions. After more? There are no ongoing fees on this loan, so you won’t be out of pocket paying monthly service charges.

Queensland Country Bank RateSaver
Queensland Country Bank
  • 3.49% fixed rate (3.90% comparison rate*) for 3 years

  • No monthly service fees

  • Offset account

Prefer an interest-only repayment schedule for the time being? The Queensland Country Credit Union RateSaver could be your perfect match. With a competitive 3.49% fixed 3 year rate (3.90% comparison rate*) and no monthly fees, you could be saving yourself a whole chunk in interest and extra ongoing costs. And that’s not the only thing to write home about, this loan also comes with an offset account feature, complimentary extra repayments up to $10,000 a year and a redraw facility.  

*WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for the amount and term you entered.

**Initial monthly repayment figures are estimates only, based on the advertised rate, and a loan of $500,000 repaid over 25 years. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home loans Awards

Looking for more investment home loans? Head to our home loan comparison table to weigh up more providers or have a read of our handy tips and guides.