Investment Loans

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Investment Loans

An investment property loan is a type of home loan that someone borrows to invest. It’s a mortgage designed for those who intend to buy a property to invest – renting it out to receive income from it.

An investment loan is a risky business because if the market fluctuates you will get bigger returns on the rise and higher losses on the plummet. Investment loans (borrowing to invest) work on a similar premise to other home loans. Individuals who can’t afford to buy the property without a loan can borrow this type of mortgage. It can be used to invest in apartments, houses, lands, or commercial property.

Investment loans have strict approval conditions and features. For instance, this type of loan requires a higher loan-to-value ratio (LVR) – which means when you buy a property, you have to pay a higher deposit to the lender to get the money you need and then repay the loan with higher interest rates on average than home loans in regular installments.

If you are opting for a variable rate loan, the interest rate and payments may increase – say, by 2% to 4%. Could you still have enough money for the repayments?

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Eligibility

Before applying and affecting your credit score we review everything upfront. If you are not eligible for any reason we will let you know.?

 

Fast Approval

Our green tick review of your credit file and application mean we can lodge your loan for pre-approval

 
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Access to 35+ Lenders

With all the lenders under the 1 banner we have all the options to suit your personal circumstances

Meet George, the right expert to sort out your finance.

Once we have determined your finance needs, we will
find you the most appropriate option in conjunction
with the lowest rate, fees and charges possible for your
circumstances.

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Expenses that you incur for your investment property can be claimed as tax deductions to reduce your taxable rental income while you’re renting it out, and your capital gains tax if you sell the property. 

The tax deductions you can claim for an investment property include:

  • Interest on the investment loan
  • Home and landlord insurance 
  • Real estate agent’s commission
  • Maintenance costs
  • Council rates, maintenance, and repairs
  • A decline in value of depreciating assets
  • Construction costs (“capital works”)
  • Travel expenses to the property to do an inspection
  • Other expenses – mortgage costs without the assistance of the incoming rent if you can’t find a tenant for a period of time.
  • If tenants were to damage property or pose a financial risk you have to invest in repair and take legal action to evict them if they cause strife.

Investment home loans are higher risk loans than standard home loans and you must need to be financially strong to qualify for them. Don’t get the maximum loan amount, put some cash aside, and diversify your investment in case of a single investment falls in value.

There are many strategies available to apply for investment loan with less hassle and we’ll help you find the right investment loan depending on your financial goals. We are accredited with certified lenders. 

Talk to us today to see what the best investment home loan might work for you.