Need to Know Investment Loans
From a bank perspective, investors who have investment properties tend to be a higher value client. On the other hand however, a typical investment loan is at a higher risk to banks. Since this is true, lenders tend to have lower LVRs (Lend less as a percentage of property value) and they also tend to have very strict guidelines for lending money for investment properties. The trick is to find banks that encourage investment rather than lenders who are conservative about giving out money for investing.
Which lenders can help?
Bank or Non-bank lenders can both help with home investment loans on a case by case basis. The difference in choosing what's best is learning the strengths and weaknesses of individual lenders.
Which loan types are available?
All loan types: Professional packages, basic loans, lines of credit, fixed rates.
How much can I borrow?
100% of the homes property value can be borrowed against in most cases. However, without having more than one property, additional assets may be required. Another exception to this rule is first time home buyers, many banks require an individual with some buying experience to guarantee a loan.
There are also 106% LVR loans for investments. These can help new buyers enter the property market sooner than they ever expected. These loans are also more expensive however than 100% LVR.
What can I use the loan for?
All investment purposes that are not illegal are acceptable to our lenders. Investment loans can be used to invest in property, shares, managed funds, options or business.
Who this loan is for?
Investment Property Loans are for anyone looking to invest and make extra money. While it's not required, a good business sense is helpful if you are looking to make a profit off of any investment. It is also for those that have done their research and know what the risks are.
Who this loan is not for?
Many banks will not give investment property loans to those who have obtained bad credit over the years. If a lender feels as though someone will not make a return on an investment, they may be weary about giving them money.
Loan Discounts:
Investment professional package and Investment basic investment property loan discounts are sometimes available.
Types of Loan Features:
Interest only, fixed rate, line of credit, 100% offset, redraw, and extra repayments. Get the right investment advice.