Investor's Strategy On I/O Vs P/I Repayments
Recently, most lenders have increased interest rates (for investment lending) as a way of recouping lost profits for having to retain more capital against their loan book. This was an order by the regulator APRA. If you want to borrow money for investment purposes, you’re paying a price for it. At the present time it’s costing you anywhere between 27 to 50 basis points higher if borrowing for investment purposes. The great news is that there are lenders who are pricing inve