Investment loans

Investment loans in Australia are like planting a money tree in your backyard—except instead of waiting for years, you're nurturing your financial garden with the help of a savvy loan. It's like being the captain of your own financial ship, setting sail towards a horizon of potential profits. Picture yourself as a modern-day property tycoon, navigating the seas of real estate opportunities with an investment loan as your trusty anchor.

Investing in properties Down Under isn't just about bricks and mortar; it's about building a diverse portfolio that resembles a box of assorted Tim Tams. With an investment loan, you can dip your biscuit into various properties—residential, commercial, or maybe even a beachside bungalow—to create a sweet mix of income streams. It's like curating a gallery of financial artworks, each property adding its unique brushstroke to your growing portfolio masterpiece.

And just like a game of Monopoly, where you strategically acquire properties to maximize your returns, an investment loan lets you expand your empire. You're not just buying houses; you're building a financial fortress, one investment at a time. With each addition to your portfolio, you're not only aiming for profits but also diversifying your risks—because in this game of real estate, having a well-balanced portfolio is like having hotels on Boardwalk and Park Place.

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The process

Whether it’s your first time or you’ve done this before, familiarise yourself with the ins and outs of investment borrowing.
  • 1

    Say hello

    Your next investment starts by taking one minute to answer a few questions right here. After that, we’ll meet to discuss your goals, in person or online.

  • 2

    The hunt begins

    To find the most suited lenders, we’ll discuss your options and borrowing power. An existing property can be used as equity, which means you may not need as much deposit as you first thought.
  • 3

    Down to business

    Found a lender? Great stuff. We’ll do the paperwork to package, sign and lodge your documents.
  • 4

    The go ahead

    Once pre-approved, your borrowing power will be revealed. Now you can make an offer on your next investment.
  • 5

    The hard yards

    You’ve made your move and have just secured a property, all that’s left is the paperwork, which you can leave to us. We will work overtime to ensure your property is accepted by the bank. Grab a sharpie, because a settlement date will then be set in place.
  • 6

    It doesn’t get bigger than this

    It’s settlement time! We’ll coordinate with your solicitor or conveyancer and the lender, in line with the date on the contract. Once the settlement takes place, pop the champagne because you’ve just won the property game.

Variable rate loan

As the name suggests, the interest rate can change over the life of the loan. This gives you flexibility, but can also leave you open to rate rises. These loans offer more flexible features like unlimited additional repayments, redraw, and offset accounts.

Fixed rate loan

Basically, 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. So no surprises.

Split loan

You’re able to fix part of your loan, while leaving the rest variable.

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.

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.

Interest only loans

As the name suggests, you only pay the interest on the principal balance for a set term, with the principal balance unchanged.

Guarantor Home Loans

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 or a step parent or grandparents.

Loan types and features

There are a number of loan types available to you; variable rates, fixed rates, packaged loans and more, scroll through some of the options below to get a better understanding of what the differences are. We’re here to answer your questions when you’re ready.
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Investment strategies

Let's make the complicated, uncomplicated. An investment strategy is just the way you want to invest your money. Still not crystal clear?

  • 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.

Calculators

Use these calculators to help you understand your borrowing power and calculate how much stamp duty you might need to pay.

How much can I borrow?

Your borrowing power is a critical number to know because it helps you understand how much you can spend on a property. Find out how much you can borrow now.

How much is Stamp Duty?

Find out how much budget you need to set aside to cover Stamp Duty costs and what the requirements are in your state or territory.

FAQs about
investment loans

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.

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