Investment Loans

Investment loans are very similar to home loans and suitable for people interested in purchasing an investment property and renting it out to someone to receive income from it. You can maximize your potential return in the long run. The main benefit is that the amount of interest you pay on your investment loan is tax deductible. 

Generally investment loans are more flexible than loans for owner-occupiers to help investors achieve their financial goals for the property, thus attract slightly higher interest rates and fees.

Some salient features of investment loans include:

· Interest only repayments

· Fixed Interest rates

· Extra repayments

· Redraw facility

· Offset account

Using equity to purchase a second property:

Equity is the difference between the value of your property and the amount of loan owned. This gives you available equity in your property but the lender determines your accessible equity considering 80% LVR. You can use equity in your existing property to fund deposit for your next investment property and even to build property portfolio.