Buying an investment property is different to buying owner-occupied property, which can bring some additional confusion, but we are here to help make the process easy and educate you!
We have a large panel of lenders who have products available for investment purchases, but as the interest rate, repayment option and products are not the same of an owner-occupied loan, using a mortgage broker can make it easier to understand your requirements by comparing lender to lender. An investment loan will require you to pay stamp duty along with the legal fees you will already incur.
The major advantage that an investment loan gives you, is that you can use the equity in your existing property as extra security and this will result in a smaller deposit required. If you have a lot of equity in your home, you may not even need a deposit! This allows you to continue to build equity in your investment, whilst decreasing the balance of your loan at the same time.
There is the option for the repayment type to be Principal & Interest, where you pay a portion of the loan balance and the interest incurred for the period of repayment, which is available in owner-occupied home loan. An investment loan is also able to have Interest Only repayments, where the loan is locked in for a period of time to only pay the interest of the loan, however the loan balance doesn’t decrease. It can help to provide some flexibility for different circumstances, but it can result in paying more than a principal & interest loan.
We are here to help you understand and navigate your way through an investment loan, so leave an enquiry or give us a call!