An investment loan works like a standard home loan except that the property is not occupied by the borrower themselves. Instead, the borrower purchases the property to generate a passive income by reselling it, renting it to tenants, or both.
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Are you looking to set yourself up with rental income, capital growth, or a retirement nest egg? We have investment property loans with competitive interest rates, interest only repayment options, and redraw facilities to give you the freedom you need.
Use our home loan repayment calculator to get an estimate of how much your principal and interest repayments will be on your investment property loan.
Get started by entering your property value and loan amount and click 'show my repayments'. Select 'investment' as your preferred loan type and you'll be able to choose from our available loan products.
Use our home loan comparison calculator to see a side by side comparison of our different investment loan products and find out how much you could save.
Alternatively, if you want to find out how much you could save over the life of your loan by making extra repayments or find out how much you could borrow, then take a look at our other home loan calculators.
Building an investment portfolio is both exciting and challenging, and if done right, it can really benefit you in the long run. Investment loans can give you the capital you need to purchase a great investment property and build the passive income you need to enjoy true financial freedom.
If you’re interested in applying for an investment property loan, our Home Loan Specialists will be able to answer any questions you may have, and our mobile lenders can even come to you to help get you started.
No matter what stage you're at when it comes to buying a home, we're here to help you from application to settlement, as well as answer any questions that come up along the way.
Are you after more information? One of our experienced home lenders will get in touch with you to answer any questions you may have.
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An investment loan works like a standard home loan except that the property is not occupied by the borrower themselves. Instead, the borrower purchases the property to generate a passive income by reselling it, renting it to tenants, or both.
Principal and interest repayments mean that your mortgage repayments are split between paying off the principal amount you borrowed, and the interest owed.
On the other hand, interest only loan repayments mean that 100% of your repayments are going towards paying off the interest on your mortgage and no debt reduction during the interest only period. Interest only repayments go on for a set period before the loan will automatically change to principal and interest repayments.
Interest only repayments allow you to pay down your interest owed quickly and enjoy a lower monthly repayment for the first few years after buying the property. For your first investment property, interest only repayments may give you the breathing room you need to get tenants or start working on renovations to your future investment property.
Whether or not investment property loans are harder to get than home loans for owner-occupiers depends on the buyer’s financial situation. Generally, loans for a property investment have tougher lending criteria because they carry more risk.
For example, if the buyer is planning to rely on rental income to honour their repayments, there is the risk that they won’t be able to find or keep tenants. This is why for some investment loans, buyers are required to provide evidence of their prior success owning an investment property.
Yes, it may be possible to use the existing equity you have accumulated in your home to finance an investment property. Contact us to discuss how much equity you can leverage when applying for one of our investment loans.
Buying an investment property can be a great way to set up a passive income for yourself, either by renting it to tenants or strategically selling it for a higher price at a later time. As with any financial product, there is always a trade-off, and property investors need to carefully consider their options and have a solid investment strategy.
For example, a popular strategy for property investors is to purchase a property they predict will increase in value over time, either due to outside factors like nearby infrastructure development or because they will invest in renovations. They may then be able to sell the property for a much higher price than they bought it for later on, giving them a significant return on investment.
It’s always a good idea to seek professional advice from a property investment consultant to weigh up your options and reduce your risk.
You will usually be required to pay Lenders Mortgage Insurance on some loans when you borrow more than 80% of the property’s value (loan to value ratio). This insurance is a form of security deposit that protects the lender if the borrower is unable to make their home loan repayments.
Disclaimer
Credit products issued by Police & Nurses Limited (P&N Bank) ABN 69 087 651 876 AFSL/Australian Credit Licence 240701. Lending criteria, terms & conditions, fees & charges apply. Rates subject to change. Target Market Determinations (TMDs) are available for products.
Comparison rate calculated on a loan amount of $150,000 over a term of 25 years based on monthly repayments. For variable Interest Only loans, comparison rates are based on an initial 3 year Interest Only period. For fixed Interest Only loans, comparison rates are based on an initial Interest Only period equal in length to the fixed period. During an Interest Only period, your Interest Only payments will not reduce your loan balance. This may mean you pay more interest over the life of the loan.
WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.
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