Investment Loans

Invest in your future with expert guidance and find the perfect investment loan for your goals.

Build Wealth: Grow your portfolio and secure your financial future.

Lower Rates: Access the best deals to maximise your return.

Expert Guidance: Have a dedicated mortgage broker by your side.

40 Lenders And Counting: Our experts find the right fit for you.

Why Choose an Investment Loan?

Long-Term Growth.

Potential for capital appreciation in the property value over time.

Generate Rental Income.

Build a steady stream of passive income by renting out your investment property.

Tax Advantages.

(Consult a tax professional) Investment properties may offer tax deductions on certain expenses.

Investment Loans Explained

Investment loans help you finance a property you intend to rent out and generate income, rather than live in yourself. They differ from traditional home loans in a few key ways:

Higher Interest Rates.

Investment loans typically come with slightly higher interest rates compared to owner-occupied home loans. This reflects the increased risk for lenders associated with investment properties.

Larger Deposit Requirement.

The minimum deposit required for an investment loan is typically higher than for a home loan, ranging from 20% to 40% depending on the lender and your financial situation.

Unique Loan Features.

Investment loans may offer features that cater to investment strategies, such as interest-Only and fixed or variable rate.

Interest-Only Loans.

These prioritise cash flow in the initial stages by only requiring interest repayments on the loan. However, you won't be building equity in the property until you start paying down the principal amount.

Fixed or Variable-Rate Loans.

Fixed rates offer stability with a locked-in interest rate for a set period. Variable rates can fluctuate based on market conditions, potentially offering lower rates but also carrying the risk of increases.

Let's Find the Right Loan for You:

We offer a variety of investment loan options to suit your investment goals and financial situation.

Basic Investment Loan.

This is a straightforward loan for purchasing an investment property. It offers flexibility and can be combined with features like fixed or variable interest rates.

Interest-Only Loans.

As mentioned earlier, this option can be helpful for maximising rental income initially. However, it's important to have a plan to transition to paying down the principal balance later.

Principal & Interest (P&I) Loan.

This is a traditional loan structure where you repay both the principal amount you borrowed and the interest over the loan term. This builds equity in the property as you make your repayments.

Fixed or Variable-Rate Loans.

Consider your risk tolerance and investment goals when choosing between the stability of a fixed rate or the potential benefits (and risks) of a variable rate loan. Our brokers can help you navigate this decision.

Beyond the Loan: Your Investment Partner

Negotiation Power.

We leverage our lender relationships to secure the best possible rates and terms.

Ongoing Support.

We're here to answer your questions throughout your investment journey.

Streamlined Process.

We handle the application paperwork and navigate you through each step.

Expert Guidance.

Our 20 years’ investment experience means in-depth knowledge of investment loan options and market trends.

Investment Loans Frequently Asked Questions

Understanding Investment Loans

  • An investment loan helps you finance a property you intend to rent out and generate income, rather than live in yourself.

  • Investment loans typically have:

    • Higher Interest Rates: Investment loans often come with slightly higher interest rates compared to owner-occupied home loans to reflect the increased risk for lenders.

    • Stricter Borrowing Limits: Lenders may impose lower borrowing limits for investment loans as a way to manage risk. This means the maximum amount you can borrow might be a smaller percentage of the property value compared to a home loan.

    • Larger Deposit Requirement: The minimum deposit required for an investment loan is typically higher than for a home loan, ranging from 20% to 40% depending on the lender and your financial situation.

    • Different Loan Features: Investment loans may offer features like interest-only repayments, which can be helpful for cash flow management in the initial stages of investment.

  • There are various options to suit your investment goals:

    • Basic Investment Loan: A straightforward loan for purchasing an investment property.

    • Principal & Interest (P&I) Loan: Repays both the principal amount you borrowed and the interest over the loan term. This builds equity in the property as you pay it down.

    • Interest-Only Loan: Only pays the interest on the loan initially, with a balloon payment at the end of the term to cover the principal amount. This can be helpful for maximising rental income in the short term, but remember you won't be building equity in the property until you start paying down the principal.

    • Fixed vs. Variable Rate Loans: Fixed offers stability with a locked-in interest rate for a set period. Variable rates can fluctuate based on market conditions, potentially offering lower rates but also carrying the risk of increases.

Financing Your Investment

  • The minimum deposit typically ranges from 20% to 40% of the property value, depending on the lender and your financial situation. Some lenders may offer low-deposit investment loans with a Loan-to-Value Ratio (LVR) exceeding 80%, but these often come with stricter requirements and potentially higher interest rates.

  • Some lenders offer "construction and establishment" loans that can cover the purchase price, stamp duty, legal fees, and even renovation costs rolled into one loan. This can be helpful for simplifying the financing process.

  • Lenders consider your overall financial health, including:

    • Income & Savings: Demonstrating a stable income and sufficient savings shows you can comfortably manage the loan repayments.

    • Credit Score: A good credit score indicates responsible borrowing habits and makes you a more attractive borrower.

    • Existing Debts: High existing debts can reduce your borrowing capacity.

    • Investment Experience: Experience in property investment can be beneficial, but it's not always mandatory.

Investment and Tax Implications

It’s really important your accountant and/or financial adviser helps you out if you have these questions. If you don’t already have one, we know some great accountants and financial advisers near you. Let us know if you want to find one.

  • Potentially! You might be able to deduct certain expenses related to owning and maintaining the property, which could reduce your taxable income. Speak with a tax professional for tailored advice on what deductions may apply to your specific situation. Common deductions include:

    • Interest on your investment loan

    • Property management fees

    • Council rates

    • Repairs and maintenance costs

  • Negative gearing occurs when your rental income from the property doesn't cover all your investment property expenses, including loan repayments. The losses may be tax-deductible, potentially offsetting your tax bill. However, it's a financial strategy with risks. Consider seeking professional financial advice before pursuing a negative gearing strategy.

The Benefits of Using a Mortgage Broker

  • A mortgage broker can be a valuable asset in your investment journey by:

    • Assessing your financial situation and goals: They can help you understand your borrowing capacity and investment goals to recommend suitable loan options.

    • Comparing loan options from various lenders: Brokers have access to a wide range of lenders and can find you the most competitive rates and terms based on your needs.

    • Negotiating on your behalf: Brokers can leverage their relationships with lenders to negotiate on your behalf to secure the best possible deal.

    • Guiding you through the application process: They can help you gather the required documents.