Investment Loans
Looking for your next property? Adding to your self-managed fund? Considering between cash flow and capital growth? Whatever your next step, we’re here to take out the hurdles.
The process is easy!
1
Start Your Application
Once you’ve started an application with us, I’ll be in touch to assist you through the process.
You’ll enjoy the ease and flexibility of our secure online portal to assist in providing the required documents.
2
Receive Personalised Advice
Once I’ve assessed your situation, I’ll provide you with a few options to consider personalised to your situation and goals.
3
Select Your Preferred Loan
I’ll guide you through the options and assist you in selecting the right loan product. Then I’ll do the legwork for you with the lender and process the application through to approval.
4
Receive Your Funds
I’ll keep in touch with you in the lead up to your loan settlement day and ensure you receive your funds to facilitate your exciting next move!
Loan types and features
There are a number of loan types available to you; variable rates, fixed rates, guarantor loans and more. Scroll through some of the options below to get a better understanding of what the differences are. I’m here to answer your questions when you’re ready.
Variable Rate Loan
The interest rate can change over the life of the loan. This gives you flexibility but can also leave you open to rate rises. Variable loans offer more flexible features like unlimited additional repayments, redraw, and offset accounts.
Fixed Rate Loan
This is the opposite of a variable rate loan. Your interest rate and repayments will stay the same during the fixed term, no matter what.
Interest Only Loan
As the name suggests, you only pay the interest on the principal balance for a set term, with the principal balance unchanged.
Packaged Loan
Professional packages offer discounts on standard variable and fixed rates, the waiving of fees and, in some cases, great deals on other products from the same lender. A packaged loan usually comes with one annual fee for the bundled products.
Split Loan
You’re able to fix part of your loan, while leaving the rest variable.
Introductory Rate Loan
Also known as ‘honeymoon’ loans, these offer a low interest rate for a short period (eg. a year), after which the rate moves to the standard variable rate.
Guarantor Loan
A guarantor uses the equity they’ve built up in an existing property to help you purchase your property sooner. Guarantors could be your parents, parent-in-law, stepparent or grandparents.
Investment Strategies
Let’s make the complicated, uncomplicated. An investment strategy is just the way you want to invest your money.
'Rentvesting'
The freedom of renting meets the stability of owning. ‘Rentvesting’ is a popular strategy for first time investors. Basically, you’re investing while you rent. Stay in the suburb you want, while owning an investment somewhere else.
Use your home to buy another
If you already have a home, you can use its equity to top up your deposit. Don’t forget, equity is not free money. When you access your equity your loan balance will increase and so will your repayments.
Positive and negative gearing
What’s the difference between the two, and which is right for your investment property?
Positive gearing is when your total rental income is MORE than the cost of owning and managing the investment property (loan repayments, interest, maintenance, management fees, etc). To put it simply, your property props up finances.
Negative gearing is the opposite. It’s when your total rental income is LESS than the cost of owning and managing the investment property, leaving you to make up the difference in payments.
Positive gearing allows you to have an increased income and generally won’t put you out of pocket. However, you will be taxed on any additional cash from your investment.
With negative gearing you can claim tax deductions on expenses related to owning your investment property. The capital growth on the property will also eventually outweigh the expenses as the property grows in value overtime.
Like the names suggest, there are pros and cons for both situations, so it’s important to get the right advice on which one is better suited to you.
FAQs about refinancing
We’ve got your questions covered.
There are several fees that often aren’t discussed in length when buying a property. These include stamp duty, pest and building inspections and mortgage registration and transfer fees. Get in touch with me today for an up-front conversation about all the hidden fees.
Absolutely! You can use your existing home to buy your investment without needing to dive into your savings. This equity can be used for various different reasons, such as a deposit, bonds, renovations or to take out a line of credit.
The ideal loan should maximise your goals for cash-flow and capital growth. One of the first considerations for your loan is will it have a fixed or variable interest rate? Different lenders also play a part as they all offer different loan options. I can help you understand your options and find the right loan with the right features to save you both time and money.
There is no cost to you. A mortgage broker acts as the middleman between you and the lenders/banks. We work for you, but get paid by the lender or bank of your choosing.