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Where Investors Get the Most from Low Interest Rates

Written by Dave PLatter, Global PR Director

The South China Morning Post last month wrote a fascinating article about how the rate-cutting cycle at the U.S. Federal Reserve affects investors.  

One of the experts cited in the article by Asia’s largest English-language news source was IQI’s own Co-Founder and Group CEO, Kashif Ansari.  

“The USA, UK, Canada, and the UAE all are in a rates-easing cycle,” he told the Post. “That gives borrowers more buying power as we go into 2026.  

“Typical mortgage interest rates this month vary from as low as 1.8% in Japan to as much as 6.5% in the USA, with offshore buyers who have no local income typically paying up to 2 percentage points more. 

For buyers looking at the USA, Mr. Ansari said many investors consider it a good time to purchase, especially if they can pay with cash. The rental market is robust and provides sustained rental yields, and with rates easing, they will be able to refinance later at a lower rate.  

Regarding the UK, he said, “The UK has a chronic housing shortage and lower interest rates than the United States. That also makes it an attractive rental market, especially if you can purchase a relatively high-yielding property. “ 

Mr. Ansari said Japan is attractive at the moment because the yen is weak and properties in the major cities deliver high yields.  

“But foreign investors in Japan should move with speed because some locals are calling for a foreign buyer ban, similar to Korea’s recently announced partial ban.” 

For more of Mr. Ansari’s insights on interest rates, please see the provided table.  

CountryTypical Prevailing Mortgage Rates* Next Rate Decision Date 
United States (Fed) ~6.35–6.50% The Fed eased rates by 25 basis points on 18 September.  
United Kingdom (BoE) ~4.3% (avg effective) The Bank of England kept rates unchanged on 18 September.  
Canada (BoC) ~3.8–4.2% The Bank of Canada eased rates by 25 basis points on 18 September.  
Australia (RBA) 5.68% The RBA left the cash rate unchanged at 3.60 per cent on 30 September. 
Japan (BoJ) ~1.8–2.0% The Bank of Japan left rates unchanged on 19 September. 
United Arab Emirates (CBUAE) ~4.0–5.5% The CBUAE cut by 25 basis points on 18 September. 
Singapore (MAS) 2.60% (HDB) / ~2.1–2.3% (bank 2-yr fixed) 2025-10-14 
Thailand (BOT) ~5–6% 2025-10-08 
Malaysia (BNM) ~3.8–4.5% 2025-11-06 
New Zealand (RBNZ) ~4.9–5.3% 2025-10-08 

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