Attention property investors: if your home loan is more than a couple of years old, there’s a good chance your interest rate is too high.
According to the most recent Reserve Bank of Australia data, for July, investors with outstanding loans (i.e. existing customers) were charged significantly higher interest rates than investors with new loans (i.e. new buyers or refinancers).
On average, investors with outstanding loans were charged an extra:
0.39 percentage points for principal-and-interest loans
0.53 percentage points for interest-only loans
And those are just the averages. Some investors with new loans were able to make even larger savings.
Why do new customers pay lower rates than existing customers?
If you’ve got a mortgage, you might be wondering why your lender is making you, a loyal customer, pay higher interest rates than new customers.
There are thr...
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