Investment loans
The range of investment loans and loan features available to suit both new and experienced investors is now quite extraordinary, ranging from simple home loans to more complex loans that are allow you to manage tax, gearing and repayments.
Which investment finance method you choose will depend on a number of factors, including whether or not you are carrying existing personal debt in the form of an owner-occupier mortgage or personal loans and other debt. Generally speaking, it is better to pay of personal debt first, minimising investment debt as much as possible during this period.
Get a free investment finance assessment
For a free investment finance assessment to examine the options available to suit your personal investment position and strategy, fill in the form below to talk to an experienced investment finance mortgage broker, or call us on 13 LOAN (direct +61 2 9249 3739).
Always seek advice from your accountant on investment and taxation rules for your particular situation prior to making a decision on investment methods. This is particularly important when you are considering investment relating to your superannuation.
Residential property investment loans
Borrowing options available to investors are now very similar to loans for owner-occupier purchases and include both variable and fixed rate home loans with the option to make principal and interest or interest only repayments.
Two options that may particularly appeal to property investors are the Line of credit loan, and the opportunity to make Interest only repayments. Paying the interest in advance on your investment loan may also be suitable and cost-effective.
Other loan types – personal loans and fully drawn advances
If the other types of loans mentioned don’t suit you, there are a few alternatives that are not often known or advertised.
If you don’t want to use your residential property as security, don’t have residential security available or aren’t comfortable with margin lending, you may be able to finance your investment through a personal loan. This can be a great way to start a share portfolio in particular.
Many lenders also offer a facility known as a Fully drawn advance. This is a type of loan that may be offered on an interest only or principle and interest basis, which is generally used for business or investment purchases, and may be either unsecured or secured.
For more information on investment loans
Talk to your local mortgage broker, or call us at any time on 13LOAN or direct on +61 2 9249 3739.
