There’s a lot to know about investments, such as how to choose the best investment loan that meets your needs and goals. A good investment loan can make property investment a much smoother process.
Investment loans vary depending on what you’re looking to achieve, and can be either very simple (like your standard home loan), or something more complex that helps you make effective use of tax, gearing and repayments. You can also make good use of loan features such as redraw, offset and additional repayments to help manage your investment loan.
Investor borrowers are the most sought after customer by banks and lenders due to their equity position and borrowing history. It’s important that you use this position to secure the right loan for your finance needs at the most competitive offer.
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 allow you to manage tax 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’s better to pay off personal debt first, minimising investment debt as much as possible during this period.
Get an investment finance package tailored to your situation
For an investment finance package tailored to your personal investment position and strategy, talk to an experienced investment finance Loan Market mortgage adviser. Always seek advice from your accountant on investment and taxation rules for your particular situation prior to making a decision on investment methods.
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.