The end of financial year has been and gone and I hope you all survived it! And what a year it was for anyone with a home or investment loan and certainly for those thinking about entering the market.
We have seen some banks exit the investment market completely, others no longer accepting refinances and others who just seem to continuously increase their rates!
So as you take stock of your current investment and receive your EOFY statements from property managers its a great time to look at your currently interest rate. Often we set and forget our investment lending, particularly if the rent is covering it giving you no real reason to check on it.
I want to share a quick success story I just had this month with a couple from Canberra. They came to see me because they fell into the category of their current bank increasing their investment lending interest rates what seemed like every second day!
Working with them and keeping their future plans and goals in mind, I was able to refinance them over to a different lender and save them just over $8,000 per year in repayments. This
equates to a saving of $150 per week or $50 per week across their three properties. They were over the moon.
Sometimes we focus too much on increasing rent (which can be difficult depending on the current market) and fail to look at alternative ways to increase rental returns.
With all the changes in rules and regulations, some banks just no longer have an appetite for investment lending and will therefore continue to increase their interest rates. I urge you to take the time to check your current interest rate and get i touch if it's over 4%.