Buying An Property? Get Help With Investment Loan in Australia

If you're looking to invest in property in Australia, an investment loan can help you achieve your goals. Our experienced mortgage brokers can find a loan that is specifically designed for investors who want to purchase a property to generate rental income or for long-term capital growth. An investment property loan allows you to borrow up to 90% of the value of the property, with flexible repayment terms ranging from 1 to 30 years. Our team of mortgage brokers can help you find an investment property loan with highly competitive interest rates, making it an affordable option for investors who want to maximize their returns.

What is an Investment Loan?

An investment loan in Australia is a type of mortgage specifically designed for purchasing investment properties. Unlike home loans for owner-occupied properties, investment loans come with different terms, interest rates, and eligibility criteria. These loans are tailored to meet the needs of property investors and can offer various features to maximize your investment returns.

How we can help you?

We understand that every investor is different, which is why we can help secure a range of loan features to suit your needs. Whether you want a fixed or variable interest rate, interest-only or principal and interest repayments, or the ability to make extra repayments, we can tailor our loan recommendations to suit your specific requirements. Our team of experienced lending specialists are here to guide you through the application process, from pre-approval to settlement, and provide ongoing support throughout the life of the loan. So, if you're ready to take the next step in your property investment journey, 

Investment Loan in Australia that work harder for you

There are two primary types of property investment loans to choose from:

Fixed Rate Investment Property Loan

A fixed interest loan is an investment home loan that will retain the same interest rate for as long as it’s active. The interest rate that you lock in at the time of signing the contract is the interest rate that you will have throughout the life of the loan. Even if the rates increase as the market fluctuates, you won’t have to worry about experiencing an increased rate.

Variable Rate Investment Property Loan

A variable interest loan will fluctuate interest rates throughout the life of the loan. These are more flexible and generally easier to pay off without an exit fee. However, the interest rates can become so high that it can make the loan more challenging to pay off. You can also split your loan into both variable and fixed interest portions. For this, you’ll agree to pay a variable interest for a specific amount of time. After that, you’ll lock in a fixed interest rate.

Factors to Consider When Choosing an Investment Loan

There are a number of factors you’ll want to look at when comparing investment property loans in Australia. When searching for the ideal mortgage, here are the things you want to consider:

1. Interest Rate-As we’ve said, interest rates are one of the most important factors that will impact how you pay off your loan over time. A high interest rate will result in a higher repayment, which may make the loan more difficult to pay off. You might have to stretch the payments out further, resulting in more interest payments and a longer period of repayments, until you can actually turn a profit on your investment. A lower interest rate will result in lower payments. That means you might be able to pay the loan off faster. In turn, you could then turn a profit sooner. Keep in mind that interest payments are tax deductible expenses, so getting the lowest possible interest rate isn’t as important as finding the right loan for your needs.
2. Fees-Fees are also tax deductible, but that doesn’t mean that you want to pay any more fees than necessary. There are a number of fees baked into the cost of getting a mortgage, such as origination and application fees. Every broker will charge different fees for different services. It’s important to know what you’re paying for ahead of time.
3. Loan Features-An offset account is an example of a loan feature. This is when you accrue money in a separate bank account that reduces the amount of interest you pay overtime throughout the life of the loan. The more money you add to the offset account, the less interest you pay. The importance of these features all depend on how you plan to strategize your investments. Some investors might want an offset account while it might not matter at all for others.
4. Loan to Value Ratio-The loan to value ratio or LVR is the amount of money you can borrow compared to the value of the property. 80% LVR means you need to put down at least 20% if you expect to get the loan. The smaller the deposit, the higher the LVR you need to qualify for a loan.

Working with a Mortgage Broker

Navigating the investment loan landscape can be complex, and working with a mortgage broker can simplify the process. The best mortgage broker in Australia can provide expert advice, compare loan products, and negotiate with lenders on your behalf. Loans and Mortgages can help you find a loan that aligns with your investment strategy and financial situation.

Our Thought

Securing an investment loan in Australia is a critical step towards building a successful property portfolio. By understanding the different types of investment loans, evaluating key factors, and preparing thoroughly, you can improve your chances of approval and secure favorable loan terms. Working with a mortgage broker can further streamline the process and help you make informed decisions. With the right investment loan, you can achieve your property investment goals and grow your wealth effectively. Let our team of Loans and Mortgage experts guide and support you through the loan process. We pride ourselves on being the most trusted and experienced mortgage servicing company in Australia offering services in New South Wales, Victoria, Queensland, Western Australia, South Australia, and Tasmania. For more Call us on 0403 803 470.