Investment Property Mortgage Broker Melbourne
If you need finance for residential property investment, contact our experienced Investment Property Mortgage Broker, Melbourne.
According to the Australian Bureau of Statistics, 2.02m households in Australia owned a residential investment property in 2020.
Many investors like the tangible nature of property investment. Historically, it has also been more stable than some other forms of investment.
While prices are softening due to rising interest rates, investors have enjoyed strong returns over the past decade. Despite the current cycle, residential property investment is likely to remain a popular choice for many Australians.
Investment Property Mortgage Broker - Get in touch
Investment Property Mortgage Broker
What can be financed
Lenders will approve finance for a wide range of residential investment property investments such as:
If you need guidance around what Lenders look for, and what they will lend against types of properties – get in touch with our Investment Property Mortgage Broker Melbourne.
What equity is required?
“How much do I need to contribute to the purchase?”, is one of the most common questions our Investment Property Mortgage Broker is asked.
The amount of equity will depend on several factors including:
However, as a guide, most Lenders currently require an equity contribution of at least 20%. This can be in the form of savings, or equity held in other properties.
What other costs will I need to cover?
In addition to your equity contribution, you will also need to show you can cover:
Lenders will also want to see you can also cover ongoing costs associated with owning the property such as:
What Interest Rate Will Apply?
Again, this is a question our Investment Property Mortgage Broker is frequently asked.
The interest rate will depend on a number of factors including:
Generally residential investment property rates tend to be approximately 0.50% to 0.75% above the occupied housing rate.
Both fixed and variable interest rates (and/or a split of both) are available, as are Offset Accounts.
Interest Only Loans
Historically property investors have preferred interest only loans to maximise interest deductibility and to minimise cash flow drain.
However, until recently, we have seen many investors take advantage of historic low interest rates to repay borrowings, thereby converting negatively geared properties to positive geared.
Most Lenders are prepared to approve interest only terms up to 5 years. (Some will do 10 years, but there are conditions)
However, you need to demonstrate:
Can I borrow money through my Self-Managed Super Fund?
The answer to this is yes, you can buy an investment property and obtain finance through your SMSF:
Why use our Investment Property Mortgage Broker
As Finance Brokers we have access to more than 50 Lenders. This includes the major Banks, smaller Banks, Specialist Property Lenders, and Private Lenders.
By using our Investment Property Mortgage Broker Melbourne, you enjoy:
Our market access increases competition, which invariably leads to better outcomes for our clients.
Importantly, we will ensure the finance we source compliments any other personal, or business borrowings you may have.
If you are need Investment Property Finance, or would like to learn more, don’t hesitate to get in touch.