Are Mortgage Rates Higher for Second Homes?
Home loan lenders have several tiers for interest rates. The most secure mortgage remains the owner-occupier home loan for a primary residence. Thereafter, mortgage rates do rise for investment properties and second homes. It makes sense that interest rates for investment properties remain higher than primary residence properties. Investors take risks that sometimes pan out and sometimes don’t.
Rates for second homes increase because this property becomes a second residence. It requires a second mortgage and the homeowner has less attachment to it. A family member can live there. However, in financial trouble, the homeowner would probably let that property go first.
Mortgage House works with clients seeking to purchase a second home for investments purposes, as a gift for their children, or to turn into a vacation home. In addition, we offer competitive loan terms. For example, we offer the:
- Fix & Save 3 Years Fixed at 2.69% for second-home buyers
- Affordable First Home Buyer Special at 2.79% for first-time homebuyers
Thus, the rates remain competitive for both scenarios. In addition, each mortgage carries extra features that allow facility redraw, more repayments without penalties, and offset accounts.
Our loan specialists will evaluate your application and financial goals. That information allows them to find the best mortgage that matches the situation. When you’re ready to refinance a home loan, we can help too.
Mortgage Rates and Second Home Purchases Conclusion
While mortgage rates for second home purchases remain higher than a primary residence, Mortgage House provides competitive loan terms on all products. Contact our loan specialists to start the process.