Investment Home Loans
Investing in property is a great way of nurturing your nest egg. Not only can the rent serve as a regular source of income, but the long-term growth in value can also mean more money in your pocket when it comes time to sell your investment property.
Here at Real Simple Home Loans, we aim to deliver the best investment home loan rates in Australia to help you grow your wealth through residential real estate.
What investment home loan rates do we offer?
Whether you’re an experienced property investor or this is your very first time borrowing for an investment property, we’re dedicated to helping you get into residential real estate faster.
Learn more about our highly competitive investment home loan rates below.
Why investment loans are different to traditional home loans
The terms ‘investment loan’ and ‘owner-occupied loan’ both refer to the amounts of money you can borrow to purchase a property. But whether you choose to live in the house yourself, rent it to tenants, or flip it can have a big impact on the loan you’ll be able to access.
Investor loans are generally considered riskier than owner-occupied loans because the rental market can be uncertain, with some investment properties sitting vacant for months or even years without generating income. This higher level of risk can mean loans often come with:
- Stricter conditions
- Higher interest rates
- Lower loan-to-value ratios
- Larger deposits
The good news is lenders may take additional factors into consideration when calculating your borrowing power, including expected rental income and how likely the property is to appreciate in value. However, they may take the extra costs into consideration as well, such as landlord insurance and property management fees.
Before you buy
Investing in property is a big decision and an exciting step in nurturing long-term wealth. Here are a couple of questions that people often ask before applying for an investor home loan.
Depending on your circumstances, you can use the equity in a property you already own to buy an investment property (rather than paying a cash deposit).
One of the most common ways of borrowing against the equity in your home is to get a home loan top-up. This allows you to increase your current home loan limit, giving you the extra funds you need to secure your investment property.
Leveraging the equity of an existing property in order to access an investor home loan can come with risks, so we recommend speaking to one of our investment property home loan specialists before taking the plunge.
Generally speaking, lenders prefer not to lend more than 80% of a residential property’s price. Loans that borrow more than the standard 80% will attract lender’s mortgage insurance to cover the lender in case you fail to make repayments.
Lenders will take a number of factors into consideration when determining your borrowing power, including:
Applying for a loan for your investment property can feel like a huge step, but the whole process will go along much smoother if you have all the correct documentation ready to go. For your loan to progress, you will need to supply documentation on your assets, income, expenses, and liabilities so that we can get a clear picture of your financial situation.
Documents you’ll need include:
Why choose us?
After many years of working together in the home finance market, we’ve gleaned a few insights. Prospective clients like to work with decision-makers, they don’t like being handed down the line. (In our case, that’s impossible because there is no “down the line”). They really dislike excessive time-wasting and cost. They want answers, real simple and real fast.
So, we decided to pool our expertise and offer the home loan market a refreshing new approach, where we do all the hard work, and you enjoy the rewards.
We have your best interests at heart, our expert team negotiates on your behalf to find you the best deals possible.
Happy days!
Who we’ve helped
Looking for Something Else?
Real Simple Home Loans is committed to taking the uncertainty out of applying for a loan. We have plenty of additional resources and useful articles for you to explore, as well as a range of home loan investor rates to compare.