Have you decided on building a property portfolio?
Whether you’re looking at buying your first home for investment, plan to make your own home an investment or already have an investment home loans property under your belt, you’ll likely need an investment loan.
These loans can come with higher interest rates and fees due to most banks seeing the investment loan a higher risk so get in touch with us first. We can compare up to 50 different lenders to ensure you can recieve the best return possible on your investment. We can compare all the banks so you can select one who does not charge high ongoing fees and/or closing costs.
We help you:
- Reach your property investment goals
- Find the best investment loan for you
- Structure your loan carefully
- Get the advice and guidance you need on your journey
Most investment property loans require 20% deposit down, like traditional mortgages, it is possible to get 90 and even 95% investment loans and any lending over 80% usually incurs Lenders Mortgage Insurance (LMI – see Jargon Translator). Some lenders may require you to make Principal & Interest repayments on 95% loans until you owe 90% or less on the value of the property.
If you have a minimum of 20% deposit, you will be eligible to not pay Lender’s Mortgage Insurance. This will help to further reduce costs.
Looking to purchase a property purely as an investment?
If you borrow to invest, you will have to pay back the mortgage, so always do the numbers. Look at the worse case scenario and don’t rely on rental income to cover the mortgage – there may be times when your tenant either cannot pay the rent, has vacated early or it is left empty we provide investment home loans.
Always ensure you can make the repayment or save a nest egg to allow cover of the mortgage if the worst happens.
Many people buy investment property with the intention of taking out interest-only loans, but in most cases the interest rate is higher and at some point the interest-only period will end. This means your repayments will increase and the lender will require you to pay Principle & Interest repayments.