Buying an investment property is a great way to help build your wealth however it does represent a large financial commitment which is why it’s important to ensure you get the right loan. With banks offering a range of investment home loan products it can be confusing trying to find the right loan to suit your needs. This is where your broker comes in, with access to hundreds of products across many different lenders your broker is able to help you find the right loan for you.
Whilst property investment loans are not too dissimilar from owner occupied loans, interest only loans tend to be more popular for investors. With most standard home loans your repayments are based on the interest you owe on the principal amount you borrowed, plus a little bit of the that principal as well. By making this principle and interest repayment you gradually repay the original amount over the term of the loan.
Interest only loans differ in that you only have to pay the interest that is charged on the loan each month. Ultimately your original loan amount is repaid when you sell the investment property and you take the properties increase in value as your profit.
Interest only loans can benefit investors in a number of ways including:
A mortgage broker will sit down with you and get a thorough understanding of your circumstances, needs and goals and by comparing a range of investment loans from a wide choice of lenders, they can help you work out the options that will suit you, giving you a clear comparison between the different loans. They will also explain all the costs involved in the loan, prepare all the paperwork for your loan application, liaise with your lender and support you throughout the entire application, approval and settlement process.
Finding the right property to help you achieve your goals vital and ensuring you have the right investment lending for this property is an important part of the process.