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.
My wife and I recently purchased land and built a new home. Kathy Dundas from No Fuss Home Loans was our Mortgage Broker through this process. Kathy went over and above our expectations in helping us through this process. Apart from the standard paper work Kathy spent numerous hours going through our options and running through different scenarios to ensure we were choosing a home loan that best suited our needs. As first time builders it was a little overwhelming but Kathy made sure we had all basis covered and always responded to our calls and emails in a timely fashion and courteous manner. Kathy maybe herself available coming out to our home and even spent time helping us through some urgent matters whilst she was away on a Christmas holiday break which we are truly grateful for. Kathy provides exceptional customer service and she really looks after her clients and I would not hesitate in recommending her services to anyone in need of a good mortgage broker.Daniel Malec
“I met Kathy in 2007 when I bought my first property. She took time to educate me on the process of buying and provided detailed information on different types of home loans, which made my decision making easier. She was efficient, professional, knowledgeable and friendly. Since then I have bought number of other properties for which Kathy has successfully negotiated home loans for me.”Christian – Penrith