Mortgage Minute: Buying your first rental property
In this mortgage minute we look at what's important when buying your first rental property
Reserve Bank rules mean you require a minimum 30% deposit when purchasing an existing property and generally 20% to build or buy off the plan. Less than 20% deposit can be considered for new builds, but at higher rates.
We also work with non bank lenders, this means we can work around the Reserve Bank deposit rules, with options as low as 20% deposit for existing properties. You can use your current property to provide leverage to purchase a rental property.
Remember no two banks are the same in how they assess your application for example rental or boarder income, commissions and child support may be assessed differently between banks.
Existing short term rental income can be considered with some of the banks and this is where our large panel of lenders gives you an advantage, as we match you with the best lender for your position.
So give Loan Market a call today on 03 441 1307 and we can hatch a plan to get you into your first rental property.