“Competition for investor loans in particular has increased, and banks have recently narrowed the gap between investor and owner-occupier loans,” RBA spokesperson
Banks are being forced to cut the interest rate premium they are charging new property investors as they compete more fiercely in the investor mortgage market once again.
The mortgage market was split in two last year, after banks resumed charging property investors interest rates that were about 0.25 percentage points higher than owner-occupiers, something that had not occurred since the 1990s.
Now the interest rate gap is narrowing with several banks recently lowering what they are charging new investor borrowers.
But the change which will only affect new customers and not those with existing investment loans. So make sure you are getting the best deal by contacting Craig now on 0400 449 135 or get more information here: Find the best deal