Investment Property Loans

So you’re looking to buy an investment property and you want to know what options you have. Well, you’re in the right place.

Buying a property for investment purposes can seem overwhelming, but in Australia in particular, it’s one of the most popular forms of long-term investment due to the ever-rising property market and the opportunity for long-term, sustainable income.

What do you need to know about buying an investment property?

Ultimately, buying an investment property is about your ROI (return on investment). There are many factors that’ll affect this including the type of property you purchase (is it a house or an apartment?), the area in which it is situated (is it metropolitan or regional?), whether it is a new or an established property, and the state of the property market at the time you buy. The burning question is always: is now the time to buy?

At MortgageWorks we can help you navigate this, as well as walk you through any typical questions you might have around residential investment loans, like:

  • Is it hard to finance an investment property
  • What type of mortgage is best for an investment property?
  • What is the lowest deposit needed for an investment property?
  • Will banks lend money for an investment property
  • How much can I borrow for an investment property?

Our aim is to equip you with all the information you need to purchase an investment property, including all the costs associated with it. These costs can include mortgage registration fees, home loan fees, lender’s mortgage insurance fees, stamp duty fees, buyer’s agent fees, insurance and more.

Interest rates for investment properties

The predictions for investment interest rates are endless. But whether they’re expected to dramatically increase, stay low, or plateau, our aim is to help you find the best options for your investment strategy, and with that, the best interest rate. The lower the rate, the more you’ll be able to save over the life of your loan, and the period in which you own the property.

Generally speaking, the interest rate for investment properties is higher than for owner-occupied properties. Why? Because it provides more risk for the lender. Historically, home owners are more likely to default on an investment property loan, than a loan for their primary residence.

Deposits for investment properties

At MortgageWorks, we want to prevent our clients from getting caught out by the costs of buying an investment property.

While the general sentiment is that you need a large deposit for an investment property, it is possible to leverage the equity in your home to lock down the entire cost of your investment property. This will depend on the type of bank you’re borrowing from and the value of your primary residence. We can help you work through this.

Ready to take the leap into buying an investment property ? We can help.