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Investment Property Loans

Are you thinking about diving into the exciting world of property investment? It can be a cracking way to build wealth and secure your financial future. But before you jump in headfirst, you need to sort out your finances. That’s where investment property loans come in.

Now, investment property loans are slightly different from your regular home loan. They usually come with different interest rates, fees, and lending criteria. Don’t worry, though, because I’m here to help you navigate the ins and outs of these loans and show you how to snag the best deal possible for you. 

Why use an investment property loan?

The current property market is as diverse as the country itself. From bustling city apartments to quiet suburban homes and sprawling rural estates, there’s a wide array of choices for prospective homeowners. This diversity means that finding the right home loan requires a nuanced approach, one that takes into account individual circumstances and property types. REMC Finance understands this diversity and offers a range of home loans to match. 
  • Tax benefits: You can often claim tax deductions on your investment property loan’s interest and other expenses, which can help reduce your taxable income.
  • Build wealth: Property investment can be a great way to build long-term wealth through capital growth and rental income.
  • Diversify your portfolio: Adding property to your investment portfolio can help spread your risk and increase your returns.

Investment Property Loan Features: Making Your Investment Work Harder

Not all investment property loans are created equal, mate. Like choosing the right property, you must choose the right loan features to maximise your investment. These features can make a big difference to your cash flow and your long-term returns. Let’s have a squiz at some of the handy features you might find: 

Offset Accounts
Consider an offset account a regular transaction account linked to your home loan. The magic happens because the balance of your offset account is ‘offset’ against your loan balance, reducing the interest you’re charged. So, if your investment property loan is $500,000 and you have $50,000 in your offset account, you’ll only be charged interest on $450,000. This can be a real game-changer for investors, helping you pay off your loan faster and save thousands in interest.
Have you ever made extra repayments on your loan and then wished you could get your hands back on that cash? With a redraw facility, you can! This feature allows you to withdraw any extra repayments you’ve made, giving you access to those funds if you need them for renovations, emergencies, or even another investment opportunity. Just remember, redrawing those funds will increase your loan balance and the amount of interest you pay over the life of the loan.
Planning on upgrading your investment property down the track? Loan portability lets you transfer your existing loan to a new property, saving you time and money on application fees and other charges. This can be a handy feature for investors who are always on the lookout for their next opportunity.

What to consider when comparing investment property loans

Now, when you’re comparing investment property loans, there are a few key things you need to keep in mind:

Interest rates

Obviously, you want to find a loan with a competitive interest rate to minimise your repayments and maximise your returns. Look for variable and fixed-rate home loans and compare the home loan rates across different lenders.

Fees and charges

Don’t forget about those pesky fees! Lenders can charge various fees, such as application, valuation, and ongoing service fees. Make sure you factor these into your home loan comparison to get a true cost picture.

Loan features

Different loans come with different features, such as offset accounts, redraw facilities, and the ability to make extra repayments. Consider your important features and choose a loan that meets your needs.

Lending criteria

Lenders will assess your financial situation, including your income, expenses, and credit history, to determine whether you qualify for a loan. Make sure you understand the lending criteria before you apply.

How to find the best investment property loan for you with REMC Finance

With so many different investment property loans on the market, it can be tricky to know where to start. Here are a few tips to help you find the right deal:
  • Do your research: Jump online and use a home loan rate comparison tool to compare interest rates, fees, and features from different lenders.
  • Talk to a mortgage broker: A mortgage broker can help you navigate the home loan comparison process, find suitable loans, and negotiate with lenders on your behalf. They can be a valuable resource, especially if you’re new to property investment.
  • Consider your investment strategy: Consider your long-term investment goals and choose a loan that aligns with your strategy. For example, if you plan to hold the property long-term, consider a fixed-rate home loan to provide certainty with your repayments.
  • Get pre-approval: Getting pre-approval for an investment property loan can give you a clear idea of how much you can borrow and strengthen your position when making an offer on a property.

REMC Finance - Your Trusted Partner in Property Investment

Navigating the world of investment property loans can be like bushwalking through the Blue Mountains – plenty of twists turns, and unexpected obstacles exist. That’s where REMC Finance comes in, mate. We’re not just another mortgage broker; we’re your local experts in property investment, dedicated to helping you achieve your financial goals.

Here’s why you should choose REMC Finance for your investment property loan: 

Local Expertise

We know the Gunnedah area like the back of our hand. We understand the local property market, the rental yields, and the investment opportunities that can help you make the most of your money.

Personalised Service

At REMC Finance, you’re not just a number. We take the time to understand your individual needs and investment goals and tailor our solutions to fit you like a pair of RM Williams boots.

Access to a Wide Range of Lenders and Products

We’re not tied to any one lender, which means we can compare thousands of loan products from over 40 lenders, including the big banks and smaller lenders you might not have heard of. This gives you the best chance of finding the perfect loan with the most competitive interest rates and features.

Ongoing Support

We’re not just here for the initial loan application. We’re with you every step of the way, from property purchase to settlement and beyond. We’ll provide ongoing support and advice to help you manage your investment property and achieve your long-term financial goals.

So, if you’re ready to plunge into property investment, give us a bell at REMC Finance. We’ll help you navigate the investment property loan process, find the perfect loan to suit your needs and ensure you’re on the right track to building a brighter financial future.

FAQs about Investment Property Loans

1. What is the difference between investment property and home loans?
While both loans are used to purchase property, an investment property loan is for a property you intend to rent out or sell for profit, while a home loan is for an owner-occupied property. Investment property loans often have different interest rates, fees, and lending criteria than home loans.
It’s possible to use equity in your existing home to purchase an investment property. This is often referred to as a mortgage refinancing loan or a home refinance loan. However, it’s important to consider the implications for your finances and seek professional advice before making a decision.
LMI is insurance that protects the lender if you default on your loan. It usually applies when you deposit less than 20% of the property value. LMI can be a significant cost, so it’s worth factoring it into your calculations when comparing mortgage interest rates comparison.
While getting approved for an investment property loan with a larger deposit (20% or more) is generally easier, options are still available for those with smaller deposits. You may need to pay LMI or consider alternative loan products, such as guarantor loans.
REMC Finance is an expert in investment loans and can help you navigate the entire process, from finding the most suitable home loan rate comparison to settlement. We have access to a wide range of lenders and products, and we’ll work with you to find the perfect loan to suit your needs and investment goals.

Ready to make your investment dreams a reality?

Investing in property can be a rewarding experience, but ensuring you have the right financing in place is important. By researching, comparing investment property loans, and seeking expert advice, you can increase your chances of securing a great deal and achieving your investment goals. Call us today!
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