Investment Loans
A competitive investment loan will play a crucial role in maximising the returns on your investment property. And despite the reduction in the number of lenders and loan products as a result of the global financial crisis, there are still a large number of good deals around if you know who to ask. Lending criteria has tightened and considerable differences have emerged between the interest rates and product features being offered by lenders. To ensure that your investment loan is a competitive product from the start and to get finance assessment on your current investment loan, talk to an experienced mortgage broker by completing the brief enquiry form below.
More Information on Investment Loans
If you would like more information on investment loans that are in your best interest, call us on 13 LOAN (or +61 2 9249 3739 for international callers) or email us the form on this page and we will return your contact within 2 business hours.
Investment Loan Options
Home Loans – Variable Rate – Principal and Interest
You may consider variable rate home loans for your investment property as long as it is a residential property. Minimum repayments need to be met each month and are set for an agreed term which is usually 30 years. Extra repayments can be made and then redrawn at a later stage.
Home Loans – Variable Rate – Interest Only
As the name suggests, with an Interest Only Variable Rate Loan, you are only required to pay the interest each month (usually on the last business day of the month). The interest only payments will lapse after a pre-determined period (usually 5 years), and your loan will convert to a normal principal and interest loan for the remaining term. Extra repayments and redraw are usually not a feature of this type of loan. Variable rate interest only loans must be secured by residential property.
Home Loans – Fixed Rate – Principal & Interest
As with Variable Rate Loans, you may also consider most Fixed Rate Loans for your investment property. Minimum repayments need to be met each month and are set for an agreed term which is usually 30 years. Extra repayments usually cannot be made and redraw is not available. Fixed rate principal and interest home loans must be secured by residential property.
Home Loans – Fixed Rate – Interest Only – Annually in Advance
The term of these Fixed Rate Loans is also usually 1 to 5 years and interest is paid on drawdown and then annually, on the anniversary of the loan. In most cases, the facility must be secured by residential property, but some lenders allow a certain percentage of the security to be ASX listed shares or even commercial property.
Home Loans – Fixed Rate – Interest Only – Monthly in Arrears
The term of these Fixed Rate Loans is usually 1 to 5 years and interest only repayments are made monthly from a designated operating account. In most cases, the facility must be secured by residential property, but some lenders allow a certain percentage of the security to be ASX listed shares or even commercial property.
Line of Credit
Line of Credit Loans or Equity Lines are a variable rate product with a predetermined limit. The lender assigns you this limit secured against a residential property and when you need cash you draw against that limit, usually by writing a cheque or using a special debit card. These funds can then be used to finance other properties. With most lenders, as long as you remain within the designated limit, there are no set repayments. It is usually recommended that you pay the interest amount each month as a minimum.
More information and home loan help
For more information on how and where to find a better home loan deal from an extensive panel of Australian banks and secure mortgage lenders, or to speak to your local area mortgage expert, contact us on 13 LOAN (direct +61 2 9249 3739)
