There are few differences between what you need to do to borrow for a property you’ll live in and for one you’ll rent out. Some lenders charge a higher interest rate for investment properties because their risk may be higher.
There are few differences between what you need to do to borrow for a property you’ll live in and for one you’ll rent out. Some lenders charge a higher interest rate for investment properties because their risk may be higher.
Equity is the value of your home, less any money owed on it. For example, if your house is valued at $600,000 and the current debt is $250,000, the equity in the home would be $350,000.
You can leverage the equity in your home to cover the deposit on a new property, using your existing property as collateral. It’s great to make the first step to enter the property market because once you’re in, using equity is generally much easier than saving for another deposit. Find out more about using equity to buy another home.
An investment loan can have interest-only repayments for up to 5 years from the settlement date.
Want to save money on your investment with lower interest rates? Like more flexibility from an investment loan? Need to access equity in your property to purchase an investment property? Talk to our team about your investment loan needs today.
At Brokered Financial Services, we help property investors get a better deal by accessing products suited to investors and providing expert support every step of the way for even the most complex of investment scenarios.
