Buying an investment property can be exciting but also confusing, as it is slightly different to an owner-occupied home loan. But not to stress, we will do all the work for you, so it is a smooth process!
There is a range of different loan products that are available when purchasing an investment property, and they vary from lender to lender, so using a mortgage broker for your investment property purchase can allow you access to a larger panel of lenders with different loan options & rates. We are able to help you understand how an investment loan works, along with the different payment options based on your individual circumstances & financial advice that you may have received
You are able to use the equity in your own home to assist with the purchase, as it limits the deposit that is required to contribute towards this purchase. Basically, if you have enough equity in your own home then you may not need to pay any deposit at all towards the investment purchase & can actually borrow the full purchase price plus any stamp duty & legal costs.
It can help you to build wealth as the investment property will hopefully appreciate in value over time and you will also be reducing the loan balance as well with the goal of owning this property which then will be an income stream for you in the future.
An investment loan has the option to make Principal & Interest repayments, where you pay the interest but also a portion of the loan balance off each repayment cycle, or Interest Only repayments where you are only required to pay the interest payable each repayment cycle. With the interest Only option your loan balance does not decrease but this reduces the payments that you must make as well. This can give you some flexibility due to changing circumstances, however, it can result in setting back the loan and resulting in more interest paid if interest only is selected.
If you would like us to assist you in easing the stresses that come with buying a home, give us a call or leave an enquiry and we will get back to you!