Music to the ears of property investors as major banks cut interest rates in bid to lure further investment into the industry, sparking talk of a price war between lenders.
The Commonwealth Bank of Australia (CBA), the nation’s largest lender, is planning to drive growth in the investment sector by slashing interest rates and minimum loans by more than 90 per cent.
Having operated well below Australian Prudential Regulation Authority’s (APRA) speed limit, CBA claims its simply bringing its latest products in line with other offerings in the market place.
The announcement comes as more than 160 home loan products, both owner occupier and investor alike, slip below the benchmark 4 per cent, encourage buyers to shop around for better rates.
Industry professionals and mortgage brokers claim the recent slowdown has renewed investment property interest, particularly among retirees seeking capital growth and higher income than on offer from fixed interest rates.
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