Buying An Property? Get Help With Investment Loan in Australia

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.