Financing an Investment Property
There’s a lot to consider when you look at purchasing an investment property, such as how to choose the best investment loan that meets your needs and goals. A good investment loan can make property investment a much smoother process. At we will work with you and your financial/tax advisors to ensure that the investment loan you choose is the right one to suit your purposes
Investment loans vary depending on what you are looking to achieve, and can be either very simple (like your standard home loan), or something more complex that helps you make effective use of tax, gearing and repayments. You can also make good use of loan features such as redraw, offset and additional repayments to help manage your investment loan.
Investor borrowers are the most sought after customer by banks and lenders due to their equity position and borrowing history. It is important that you use this position to secure the right loan for your finance needs at the most competitive offer.
To assess your requirements and to negotiate a competitive deal, contact us at.
Interest only fixed and variable rate home loans
Interest only loans are a good choice for investors who are focused on achieving capital growth in the short-medium term, and often go hand-in-hand with negative gearing. These types of loans will usually have lower repayments than a principal and interest loan.
A fixed rate interest only home loan usually has a term of 1 to 5 years, after which you will need to renegotiate the fixed interest only term or convert to a variable rate interest loan.
A variable rate interest only loan works in a similar manner but with the interest required varying with market interest rate fluctuations. It’s important to note that a variable rate interest only loan may not have the same breadth of features that are available as one where principal and interest repayments are required.
Interest in advance
Paying interest in advance is the option to pay the interest that will accumulate on your loan over the next year before it is actually charged. This allows you to claim the costs against your tax a year earlier than you would normally be able to. Usually available on fixed rate loans, lenders may offer a discount on the interest rate if you do pay in advance. The loan term may range from one-to-five years, depending on your lender.
Paying interest in advance is only an option for those who are able to afford to pay the loan interest in a lump sum.
Our recent dealings with Kathy Dundas from No Fuss Home Loans, who secured us a home loan for our recently purchased property, were as the name suggests, no fuss. Kathy is very professional in her approach and she made the entire process easy for us. Kathy came to our home and helped us to fill out the paperwork, which took much of the stress out of the process. She kept in contact with us at all times and she was able to secure the loan for us in a timely manner. Kathy is delightful to deal with and we would highly recommend her services to anyone needing a loan.Gary and Maureen Simpson
“Kathy Dundas from Home Loans coordinated the process of arranging the mortgage for our home property purchase for us. Kathy came to our home for an initial meeting. Kathy spent time getting to know us and she was fantastic. She ensured we understood the process & all aspects of applying for a home loan. She gave different options that were available to us, and gave us all the information we needed which allowed us to make a sensible decision about what type of home loan would work for us.”Natalie & Josh - Drummoyne