Investment property loans
Finance for residential investment property, from your first investment to a growing portfolio. Structured with an eye on your next purchase.
Common uses
First investment
Buy your first investment property.
Portfolio growth
Structure loans so you can keep buying.
Using equity
Use equity in your home as the deposit.
Interest-only options
Where suitable for your strategy.
How lenders assess an investment loan
Investment loans are assessed on your income, the rental income and your existing commitments, with some differences from owner-occupied lending.
Rental income
Most lenders count 80% of the expected rent to allow for vacancies and costs, and some count up to 90%.
Existing debts
All your loans, including other investment loans, are assessed at a higher rate to test your capacity.
Deposit and equity
You can use savings or equity in your home. Investment loans can have higher rates than owner-occupied loans.
Loan structure
Interest-only terms, offset accounts and separate splits for each property affect cash flow and tax. Ask your accountant about structure.
Ownership
Buying in your own name, jointly, through a trust or through a company changes how lenders assess the loan.
The property
Location, type and expected rent affect the valuation and the maximum LVR.
WHO IT SUITS
Four steps, one point of contact
Tell us the plan
What you are trying to do and the approximate amount.
Get a straight answer
Whether it is fundable and which lenders suit it.
Compare the options
Rates, structure, fees and conditions side by side.
Through to settlement
Application prepared, submitted and managed.
Fix these first
These are the issues that most often slow an application down, and what to do about each one.
- Cross-securing properties
Avoid using one property as security for another loan without a good reason, as it can make selling or refinancing harder.
- Personal and investment debt mixed
Keep investment borrowing in separate loan splits so you can track the interest for tax.
- No rental appraisal
Get a written rental appraisal from a property manager to support the expected rent.
- Holding costs underestimated
Budget for rates, insurance, strata, maintenance, land tax and vacancies.
- Structure decided too late
Decide with your accountant how the property will be owned before you sign the contract.
Can I use equity in my home to invest?
Often, yes. Equity can be used as a deposit, subject to valuation and serviceability.
Should investment loans be interest-only?
It depends on your goals and cash flow. Speak with your accountant about tax implications.
Why do lenders assess investors differently?
Policies on rental income, existing debts and interest rate buffers vary by lender, which affects how much you can borrow.
Tell us what you need.
No documents needed to start. Call (02) 7822 0255 or 0481 877 727, or answer a few quick questions.