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  With the competition for business among banks and mortgage brokers heating up, lenders are now offering special deals to attract borrowers with reliable repayment histories. The approach aligns with the regulatory pressure facing lenders to tighten borrowing criteria for investment property buyers. The criteria involves raising rates and increasing loan to value ratios (the size of a loan compared with the value of a property). The range between the highest and lowest standard variable rate has increased from 3.97 per cent to 5.99 per cent. One a one-year fixed rate, the range widened to 2.35 per cent, and for four to five year fixed rates, the range widened by 1.8 per cent. These rates were within a much narrower range only 18 months ago. The better rates mean that a borrower with a $1 million, 25-year variable rate mortgage could switch from 5.13 per cent to 4.09 per cent, which is a difference of around $588 a month. Borrowers should consider asking what deals are on offer before

  Property investment is a popular way to increase a person’s wealth and secure their financial future. But changes in interest rates, fluctuations in supply and demand, and even emotional decision making processes can make the decision to invest in property a difficult one. How an investor manages their investment ultimately determines whether or not they will reach their financial goals. Below are some things to consider before taking the plunge into property investing. Establish what you want to get out of it If you don’t know what you want to achieve, then you will never get anywhere with property investing. You need to be specific about what you want to achieve, how much money you want to make and how long you want to spend trying to get to that goal. Speak to a mortgage broker For beginner investors, a well-informed mortgage broker can be invaluable. Having access to a range of mortgage and property information means they can help you calculate how much you can borrow and provide