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Why are fixed rate investment loans different to home loans?

A 1 Year Fixed Investment Mortgage usually has one big difference to fixed rate owner-occupier home loans of the same length. That difference is often the interest rate. Banks and lenders see investment mortgages as a little bit riskier than regular home mortgages, and want to manage that risk the best they can. One way they can do that is by having higher interest rates. Our 1 Year Fixed Investment Mortgage rate is an example of an investment loan that is higher than the similar owner-occupier deal we offer. As an experienced lender, we put you first, and have a range of mortgages that can suit both the investor and the owner-occupier. We know how important your property dreams can be, and we want to do as much as we can to help you realise them.

How do I find out what repayments will be for my fixed investment loan?

When you are investing in property, it is important to know exactly what your repayments will be. Our 1 Year Fixed Investment Mortgage can give you that security for the agreed term, and you can find out exactly what those repayments will be, by using the repayments calculator above. But our mortgage calculators can do much more than just letting you know what your repayments will be. Our borrowing calculator can give you an indication of how much you may be able to borrow, before you formally start the process. This is not the same as pre-approval, and is only a guide, but it can give you a picture of what you might be able to borrow. This can help you narrow down the kinds of investment property to look for. We can also show you how much stamp duty you will pay on an investment property. And if you want a guide as to how much money you might have at the end of the month to put aside for an investment mortgage, our budget planning calculator can help.

Advantage - 1 Year Fixed - Investment

What are the benefits of a fixed rate?

Fixed rate mortgages allow you to have some certainly in your repayments. They are what they sound like they are – the interest rate is fixed, usually for a fixed period, in this case 1 year. Most banks and lenders fix rates for up to 10 years. After that, the loan can revert to a standard variable loan. If there is some fear interest rates will soon rise, a loan such as our 1 Year Fixed Investment Mortgage can give you the security of knowing that for the next 12 months, your repayments will not rise. You can look to increase the term after the 1 year if you wish. Fixed rates can be higher than variable interest rates, but you can have the comfort of knowing you are in control of your finances, not the Reserve Bank or the world economy.

How are interest rates set?

Banks and lenders can fix their interest rate levels based on a number of factors, including the state of the economy and the costs they incur in making it available to you. That’s where the Reserve Bank official cash rate can come into things. Banks and lenders can also vary their rates based on other variables particular to their business model. That is where a fixed-term loan such as our 1 Year Fixed Investment Mortgage can take some of the uncertainty away from repayments.

What is a comparison rate and what does it mean?

Whenever you see an interest rate advertised – fixed or variable – you should see a comparison rate next to it. Under law, banks and lenders are required to do this. That is because a comparison rate can give you a clearer picture of the indicative rate over the life of the loan. The comparison rate for mortgages takes into account any fees and charges you might pay while servicing the loan, and can strip any introductory offers away to make the overall cost easier to understand. All this can be hard to get your head around. That is why it is important to give us a call and let us talk you through everything to do with our 1 Year Fixed Investment Mortgage, including how it can benefit you and how we can help you with choosing between mortgages to help you meet your property investment goals. There can be a lot of information out there, and a lot of mortgages to choose from. Each individual loan application comes with a lot of paperwork, something a lot of people find difficult and daunting. And when you put the pressures of marketing and advertising on top of that, finding out as much information as possible can be very important.