Interest rates for investors are finally heading down

Interest rates for investors are finally heading down with the average investor principal and interest rate dropping 35 basis points.

Falling from 4.76% to 4.41% following consecutive official rate cuts and changes to the APRA cap.

On average an investor with a $300,000 loan taken over 30 years will be $63 a month better off following the cuts.

This time two years ago in 2017 property investors were staring down average interest only rates of 5.12% and lenders were handcuffed around the volume of loans they could issue by the APRA cap.

Following the RBA’s action on rates this year, Westpac made the most significant cuts of the Big 4 banks slicing 35 basis points off its investor interest only rate in June, and 30 basis points in July.

CBA wasn’t far behind with two full 25 basis point cuts.

Considering the current average investor interest only rate of 4.52% is still higher than it was before APRA introduced its cap in 2017, the investor loan market still has a lot of room to move in the coming months.

 

 

*source Property Observer

Posted in Latest news, News on 30th July, 2019