Types Of  Investment Loans

There are many types of investment loans such as variable rates, fixed rates, interest only or principal and interest, lines of credit and more.

Most investment loans do not differ from standard home loans in the way they work. However, the interest rates for investment loan are higher than home loans.  The costs of setting up the loan are generally the same as a home loan.  This may change in the future.

Investors can access the Fixed Interest in Advance Investment loan. This is a fixed rate loan and can be fixed for 1 – 5 years.

Investment Loans
Interest in Advance Investment loan allows you to pay your interest up-front, which may provide taxation benefits, while the fixed rate provides certainty of repayments and safeguards you against increasing interest rates.

Finding the right investment home loan is almost as important as finding the right property. Our consultants have access to more than 25 lenders, who offer products such as interest only investment loans, and packages that may allow you to continue purchasing properties in the future without application fees. If you already own a property you may even be able to purchase an investment property without a cash deposit.

There can be financial benefits to taking out an Interest Only Loan when you are buying for investment.

For example, if you pay part of the principal, that amount may not be tax deductible. Instead, it has to be paid out of after tax dollars from other income. You could use this extra money as interest on a loan to buy another property and start your own property portfolio.

We recommend that you seek tax advice from your accountant to find check the current tax deductions and how this may affect your tax. It is important to get the appropriate advice for your personal situation

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Finally, there is also the option of borrowing against the equity you have built up in your own home to assist with an investment purchase. For more information on your investment loan options contact us today.

Finding the right investment home loan is almost as important as finding the right property. Our consultants have access to more than 20 lenders, who offer products such as interest only investment loans, and packages that may allow you to continue purchasing properties in the future without application fees. If you already own a property you may even be able to purchase an investment property without a cash deposit.

Get Pre-Approved

A pre-approval can give you peace of mind when purchasing your investment property. You will know the maximum amount you can spend on your purchase as well as the purchasing costs such as stamp duty and your loan repayments. It will give you a chance to compare loans and decide what kind of loan you need and which features are important to you. You may want a fixed rate loan so you know what your monthly repayments will be, a low interest rate, a nil application fee or no monthly fees.

Get a Health Check on your Existing Loan

When borrowing to purchase an investment property, it is recommended to look at your existing loans and make sure you are not paying too much in interest or fees. There are financial benefits of taking out an Interest Only Loan when you are buying for investment. For example, if you pay part of the Principal, that amount is not tax-deductible. Instead, it has to be paid out of after-tax dollars from other activities. Also, you could use this extra money as interest on a loan to buy another property and start your property portfolio. Finally, there is also an option of borrowing against the equity you have built up in your home. Have you thought about using some of that as a basis for building your long term wealth?