Is it right the banks are offering different rates for interest only loans compared to principal and interest on investment loans?

Hi Joseph,

Great question! In short, yes they do have different rates. However it's not just as simple as that.

These days rates are now dependant on a number of factors. Each bank is a little different but will be dependant if it's
1. Owner Occupied
2. Investment
3. Principal and Interest
4. Interest Only

Depending on your situation, your broker can go through all the possible lenders and determine the lender and product that would be most suitable to you.

Always happy to help if you need!
Nicole :)

Hi Joseph. Unfortunately this is now the case with many lenders. However, if you have both owner occupied and investment properties some lenders will allow you to load the owner occupied side of the loan up to its value meaning a lower rate.
As you may be aware every type of scenario needs to be looked at closely and the best way is to make an application.

Hi Joseph,

The majority of lenders have similar pricing for investment Princupal and Interest repayment Versus Interest only. However, investment loans are now more expensive than owner occupied loans.
you can save a lot of time by consulting an experienced broker.

regards