Lowest Interest Rates for 1 Year Fixed Home Loans

The comparison chart below shows some of Canstar’s database of one year fixed rate mortgage loan products with links to the websites of lenders available for a loan amount of $350,000 at 80% LVR in New South Wales, and available for principal and interest repayments. The results are sorted by comparison rate (lowest to highest), then by provider name (in alphabetical order). Before committing to a particular home loan product, check with your lender and read the applicable loan documentation to confirm if the loan terms meet your needs and repayment capacity. Use Canstar’s home loan comparison selector to view a wider range of home loan products. Canstar may earn referral fees.

*Comparison rate based on a loan of $150,000. Read it Compare rate warning.

Lowest Interest Rates for 3 Year Fixed Home Loans

The comparison table below shows some of the 3 year fixed rate investment property loan products on the Canstar database with links to the websites of the lenders available for a loan amount of $350,000 at 80% LVR in New South Wales, and available for principal and interest repayments. The results are sorted by comparison rate (lowest to highest), then by provider name (in alphabetical order). Before committing to a particular home loan product, check with your lender first and read the applicable loan documentation to confirm if the loan terms are in line. your needs and your ability to repay. Use Canstar’s home loan comparison selector to view a wider range of home loan products. Canstar may earn referral fees.

*Comparison rate based on a loan of $150,000. Read it Compare rate warning.

Lowest Interest Rates for 5 Year Fixed Home Loans

The comparison tables below show some of the 5 year fixed rate home loan products on the Canstar database with links to the websites of the lenders available for a loan amount of $350,000 at 80% LVR in New South Wales, and available for principal and interest repayments. The results are sorted by comparison rate (lowest to highest), then by provider name (in alphabetical order). Before committing to a particular home loan product, check with your lender first and read the applicable loan documentation to confirm if the loan terms are in line. your needs and your ability to repay. Use Canstar’s home loan comparison selector to view a wider range of home loan products. Canstar may earn referral fees.

*Comparison rate based on a loan of $150,000. Read it Compare rate warning.


7. Cash flow

Cash flow is the net income that the real estate investor earns after paying expenses, taxes, and mortgage repayments from an investment property. Negative cash flow occurs when costs exceed rent collected. In such situations, you have to use other sources of income to pay for the property. Therefore, the cash flow risk has the possibility of generating a negative cash flow of a greater magnitude than expected.

How to minimize this risk

  • Forecast your income and expenses and plan for contingencies.
  • Build a substantial real estate portfolio with sufficient cash flow to meet your needs.
  • Consult a real estate strategist to help you develop your long-term strategy and build your real estate portfolio based on your situation and your risk appetite.

8. Lack of liquidity

A significant risk specific to real estate investing is that properties are illiquid, that is, they cannot be easily converted into cash. This risk arises when an investor is forced to sell a property at an undesirable price due to their financial or personal circumstances.

How to minimize this risk

There is no simple solution to manage this risk, so you must adopt it by maintaining the liquidity of your portfolio. However, it would be better to avoid it altogether by building up a reserve of liquid investments or cash. When considering your acquisition, consider your need for cash and invest wisely.

9. Personal Risk

Investment portfolios can be adversely affected by several unforeseen factors, including loss of income due to injury, divorce, or job loss. This is called personal risk.

How to minimize this risk

To mitigate this risk, you should constantly review your long-term strategy and invest in building a cash flow positive real estate portfolio. In other words, you should have a neutral to positive oriented portfolio, ensuring that your investment portfolio does not depend on your contributions. Although individual properties can chase growth or cash flow, make sure your overall investment portfolio doesn’t require too much cash to operate.

Another effective way to mitigate risk is to insure yourself. All real estate investors should have life insurance and income protection. One of the obligations of investors is their ability to service their loans while growing their property portfolio. Likewise, in the event of unforeseen circumstances such as death or injury, you must ensure that your family will be able to own the investment properties.

Therefore, it is important to consult a qualified insurance broker and an accountant for advice on the type and level of cover needed.

10. Risk of seizure

This risk arises when an investor cannot pay their mortgage payments on time for an extended period; they default on their loan obligations, so the lender seizes.

How to minimize this risk

You can manage the risk of foreclosure by ensuring that all your repayments are made on time. You should also have an emergency fund to cover a few months of repayments. Finally, putting money in a clearing account will reduce the interest you are charged and provide you with both liquidity and flexibility.

This is an edited excerpt from The Real Estate Wealth Blueprint by Rasti Vaibhav ($39.95) republished with permission.

Cover image source: Soho A Studio/Shutterstock.com


Rasti VaibhavAbout Rasti Vaibhav

Rasti Vaibhav (B.Arch, M.Comp, MBA, CFA) is the founder of a buyer’s agency company Get RARE Properties. He is a licensed Independent Buyer’s Agent, Property Specialist and long-term property investor, specializing in helping homebuyers and investors buy the right property at the right price across Australia.


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