Hi,
Home loan rates seem easy to find online, but I'm having difficulty finding investment loan rates.
I realise rates change daily, but can anyone give an indication of the average difference between investment home loan versus owner occupier home loan rates? Are they, for example, 0.5 percent more/less?
If I have found a home I would like to rent out for the first year or two -- then move into -- do I need to take out an investment loan initially and then refinance once I am living in the property?
Thanks.
Interest rates - investment versus owner occupier
- Tina Pham
- Mortgage Specialist
- Posts: 175
- Joined: Thu Jul 22, 2010 9:41 am
- Location: Sydney, Australia
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Re: Interest rates - investment versus owner occupier
Hi dgirl,
There are no difference in terms of interest rates between Owner occupied loans or investment loans hence why you can't find any rates for investment loans.
However, there is a difference in terms of policy as some lenders have restrictions on how much they can lend up to for investment properties. Some will also require you to have equity in another property if you want to borrow more than 80% of the investment property purchase price.
The coding of the loan being "owner occupied" or "investment" is not important as it comes down to the purpose of the loan. For example, people can buy an owner occupied property and live in in for a few years then rent it out or rent it out and live it in later on. You don't have to refinance the loan each time you change your mind.
There are no difference in terms of interest rates between Owner occupied loans or investment loans hence why you can't find any rates for investment loans.
However, there is a difference in terms of policy as some lenders have restrictions on how much they can lend up to for investment properties. Some will also require you to have equity in another property if you want to borrow more than 80% of the investment property purchase price.
The coding of the loan being "owner occupied" or "investment" is not important as it comes down to the purpose of the loan. For example, people can buy an owner occupied property and live in in for a few years then rent it out or rent it out and live it in later on. You don't have to refinance the loan each time you change your mind.