Property Investors paying too much – Mango Money

Property investors are paying too much!

Property Investor

In the last 12 months you have probably received a letter from your lender letting you know that the interest rates on your investment properties have gone up. In many cases by half a percent or more. APRA the banking regulator reviewed many lending practices in the last year and part of their review was to slow down investment lending. From my understanding they placed a cap of 10% growth on investment lending. To reduce the growth many lenders increased their interest rate on investment loans. 

There is some good news.

Competition for borrowers has been increasing, with the non majors and other lenders working hard to provide very solid competition. Some lenders have realised they are now well below their caped growth of 10% and want to ensure they get as close to 10% as possible. So with the end of the financial year rolling around those lenders that are well short of the cap are coming out with some great deals. After all Lenders don't want their ability to grow their loan book reduced due to low growth this year. Essentially they want to ensure they maintain 10% growth year on year.

All this means great news for you, if you are not afraid to let a little paperwork scare you off. ​

At the time of writing this article, the CBA standard variable rate was 5.87% with a comparison rate of 6.01%. Yet many owner occupied home owners are getting rates under 4%. As an investor you could also be getting some very competitive rates similar to the best rates many owner occupied are still enjoying.

How much could you be costing yourself by not acting?

If you could save yourself 1% on an average investment loan of $400,000 that is equal to $4,000 per year or $76.92 a week.

What would you do with an extra $4,000?

Investors paying too much take a holiday with the savings

One thing I am sure of, is you would not need help spending it.

So whether it be a holiday for the family, some work on your home or paying down your credit card we would love to help you make it happen. 

We can also help by reviewing your loan structure to ensure you are making the most out of your loans. Ensuring that your surplus income is targeted to bad debt and that you are making the most out of your own surplus cash-flow. At Mango we specialise in helping clients make smart borrowing decisions so that you have more money for the important things in life.​

Let us help you and contact us below before these great deals end.​