New RateCity data shows that 47 mortgage lenders in Australia have reduced investor interest rates over the past two months.
This is despite both the extra scrutiny lenders now undergo when applying for such a loan, and the RBA holding steady on the 0.25 per cent official cash rate.
Of those 47 lenders, the average reduction was 0.27 per cent between mid-June and mid-August.
RateCity reports the average investor interest rate fell from 3.92 per cent in March to 3.48 per cent in August, with 27 lenders offering rates below 2.5 per cent.
Ninety-two Australian lenders currently offer investor rates under 3 per cent.
Despite the lower rate, investor borrowers are facing extra scrutiny from lenders at the moment.
Sally Tindall, research director at RateCity, warns that low rates come with extra work in this current landscape.
“If you are thinking about buying a new investment property or refinancing your investment loan, be prepared for extra scrutiny and potentially extra paperwork,” she said.
“At the end of the day, the bank just wants to make sure the numbers stack up, even if you hit tough financial times and that’s important.
“For most refinancers, the new rate you get, and the savings from it, will far outweigh the effort it takes to get your paperwork in order.”
