Investor Loans.

This mortgage category is for a property purchase that you will not use as your principle place of residence.

A number of investment strategies will require an investor home loan to fund the purchase. These can include:

• Rentvesting
• Equity release
• Positive and negative gearing
• Buy, renovate, hold or sell
• Development to hold or sell

Our brokers will discuss your overall strategy in the initial consultation so we can best understand your short and long term objectives.

Most lenders require at least a 5% deposit, but this may be higher in some circumstances. 

If your deposit is less than 20% then you may be required to pay Lenders Mortgage Insurance (LMI). Some lenders have exemptions for this for certain professions. Our brokers can discuss this with you if you qualify, and if the loan product suits your requirements and objectives.

In addition to your deposit, you will also need to cover closing costs which will include stamp duty, conveyancer fees, and various other adjustments as part of a property settlement.

As a rule of thumb, you should budget 5% of the purchase price for these costs.

You can fund this from either savings, or equity in other properties in your portfolio.

The rate of stamp duty varies from state to state, the value of the transaction, and who the buyer is. For residential property expect to pay between 1.2% and 7%. 

In some cases, investors are charged a higher tax rate than an owner occupier.

We will calculate these costs once we know your budget so you have an indication before moving ahead, and once you have agreed on a purchase we can calculate the exact figure for you.

Your borrowing limit will be determined by your income, expenses, and current debts. 

We can also include your projected rental income from your future investment in most cases. 

As part of the initial consultation, our brokers will assess your borrowing power so you know where you stand prior to committing to a mortgage application for pre-approval. 

Following the initial consultation, we will propose a number of suitable loan options shortly after along with a recommendation. 

Once you are comfortable with the selected loan product we can prepare your application. Once all documents are completed a pre-approval can usually be obtained within 24–48 hours.

If you have built up enough equity by either paying down your other home loans, or an increase in the value of the property, then you may be able to release this equity to fund further property acquisitions.

Some additional issues to consider are:

• Your capacity to repay the additional debt (rental income will help!).
• Your total borrowings vs your income.
• Whether the additional borrowings will trigger another LMI fee.

Our brokers will consider all of these questions in the initial consultation. So you know exactly where you stand.

We have access to a number of lenders who offer interest only investment loans, usually up to a maximum of 5 years before principal and interest payments are required. However, some banks are now considering longer interest only terms.

In some cases, an interest only loan may attract a higher interest rate than principal and interest. You should seek specific advice from a tax professional on whether this is the best overall outcome for your circumstances.

Once you have exchanged contracts on a property it usually takes 3-6 weeks to settlement, depending on the state or any non-standard terms that have been negotiated as part of the purchase. 

The most important step is securing unconditional loan approval within agreed timeframes. 

Followed by ensuring settlement takes place by the due date. 

We conduct all of our business online. You can submit an enquiry online in just a few minutes and we will be in touch in no time.

In the digital age we can accomplish most things via video calls, phone, email, and electronic signature platforms.

Our brokers have access to a panel of over 20 mortgage lenders. 

This allows us to quickly compare home loans and find the best mortgage rates suitable for you. 

The best part is that it is a free service for you! We earn our money from the lender in the form of a commission.

Details of this are provided to you in every case for full transparency. 

The short answer is no, and there are two main reasons for this. 

The first is that your property journey is only beginning and we intend to serve you over the long term. 

We can only do this if you are thrilled with our service. This includes finding the most suitable deal for you now, but also monitoring the market into the future for when things change. 

The second is that there is a legal requirement for mortgage brokers to act in the best interests of their clients. This regulation was introduced to limit the potential for bad actors in the industry. Giving some peace of mind for those unsure about using a broker. 

But our first reason, is our motivation regardless of the regulations. 

There are various degrees of bad credit and the overall answer is that it depends. 

We have access to a large selection of mortgage lenders and our brokers know their criteria inside out. 

Book a free consultation today so we can better understand your credit history and can assess what options you have for a home loan.