Oak Laurel | Investment loans
Do you want to talk to a finance professional about getting a investment loan? We can help.
Investment property loans: Loans for property investors
Are you a property investor?
Property investors use credit differently than non-investors. Often property investors want to maximise their borrowing power to maximise their exposure to capital gains in the property market. This can mean that the lender needs to be selected carefully and not just on price (interest rate and fee costs) or loan features. Certain lenders allow greater amount of rental income or other income types for serviceability, others have lower assessment interest rates. Certain lenders also have delegated underwriting authority for loan to value ratios above 80%, this can make them more flexible in assessing your loan application than if it also needs to also be approved by the lenders mortgage insurer.
Make sure that you match the correct lender and loan for your investment strategy.
Contact us about an investment loan
An Oak Laurel mortgage broker will go situation and objectives with you to ascertain the best way forward.
Already have one or more investment loans? Ask us for a free investment loan review.
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If your bank or another broker set up your loan structure incorrectly you can spend a lot of extra money whenever you want to borrow more, or sell a property or spend a lot of time and effort trying to untangle you loan portfolio.
Ask one of our investment property loan brokers to set up your loan property from the start or untangle your loans that have been set up incorrectly.
Note: this is not to be considered as tax or financial advice. Speak to your qualified professional for advice to meet your specific circumstances.
- Having enough deposit for the next purchase; and
- Demonstrating to the lender that you can afford to make the payments on the loan.
Your deposit can come from cash (from of savings or sale of assets) or borrowing against equity in existing property that you still own.
Property investors often want to maximise their valuations to release equity from property they already own. Different lenders use different valuation processes and companies, this can have a large impact on the valuation of your property and the amount of equity that you can release to fund further investment property purchases. Different lenders will also lend at higher loan to value ratios and or capitalise lenders mortgage insurance. This can mean the purchasing sooner instead of waiting for a larger deposit, which can mean paying a high purchase price in a rising market.
Aggressive property investors typically also want to maximise their loan serviceability. Different lenders calculate borrowing power differently. Of particular importance is the lender’s consideration of rental income (as some lenders discount rental income and others do not) and the lenders stress testing of interest rates of your existing investment property loans when calculating serviceability for your next investment property loan. These are some of the factors that need to be considered so that you can continue to grow your property portfolio.
Knowing which lenders to use and the order to use them in can make a big difference in your borrowing power. If you are planning more than one property purchase in the near future you may want to use a lender that allows you a greater borrowing power for future purchases when it is needed.
Contact a mortgage broker from Oak Laurel to find out what we can do for you.
Oak Laurel Mortgage Brokers – Investment property loans made easy!