Our Guide to Getting the Right Mortgage for an Investment Property

Mortgage for an Investment Property |

When it comes to buying an investment property in Australia, there are a lot of things to consider. One of the most important is finding the right mortgage. There are many different types of mortgages available, and each has its own benefits and drawbacks. To get the right mortgage for your investment property, you need to understand your options and compare rates.

This guide will help you do just that. By the end of this guide, you\’ll know everything you need to get the right mortgage for your investment property.


Types of rates for investment home loans

There are three types of rates you\’ll need to consider when shopping for an investment home loan: you’ll choose between a fixed interest rate, variable interest rate, or a split loan.

A fixed interest rate means your mortgage repayments will stay the same for a set period, usually between one and five years. This could be a good option if you\’re worried about interest rates rising in the future. If you\’re looking for stability in your repayments, a fixed loan may be the right option for you. By locking in an interest rate, you\’ll have peace of mind knowing what to expect each month for the first few years after buying a property.

A variable interest rate means your mortgage repayments will go up or down depending on changes to the market interest rate.

A split loan is a mortgage that has both a fixed and variable interest rate. This could be a good option if you want the stability of a fixed interest rate but also want the flexibility to make additional repayments.

Comparing mortgage rates

Once you\’ve decided which type of mortgage is right for you, it\’s time to start comparing interest rates. There are a few things to keep in mind when doing this:

Make sure you compare apples with apples. Some lenders will offer low interest rates but then charge high fees. Others might have low fees but a higher interest rate. Make sure you compare all the features of a mortgage, not just the interest rate.

– Check the comparison rate. The comparison rate is the true cost of a mortgage and takes into account both the interest rate and any fees charged by the lender.

– Don\’t just compare the headline interest rate. Make sure you read the fine print and understand all the terms and conditions of a mortgage before you apply.

We recommend speaking to an experienced mortgage broker to find the right fit for you.

How can a mortgage broker help?

A mortgage broker is a professional who can help you compare different investment loan products from a range of lenders. They\’ll take into account your financial situation and objectives to find a loan that\’s right for you.

Mortgage brokers have access to a wide range of lenders, including banks, credit unions, and non-bank lenders. This means they can find mortgage options that aren\’t available to the general public.

A mortgage broker will also help you with the paperwork and applications, and they\’ll be there to answer any questions you have along the way.

If you\’re looking for a mortgage for your investment property, we recommend speaking to Teri Maloon, from Integr8 Finance Solutions.


About Teri Maloon (Integr8 Finance Solutions)

Teri is a mortgage broker based in Melbourne, Australia with more than eight years of foreign and Australian financial planning and broking experience. Teri has the qualifications and credentials to guide you through the appropriate strategy to secure a loan suitable to your requirements. Her priority is to help smoothly navigate the legalities and the loan process proficiently to achieve favourable outcomes for her clients. Click here to contact Teri today.

Types of repayments for investment home loans

There are two repayment types for investment mortgages: interest-only and principal-and-interest repayments.

With interest-only repayments, you\’ll only need to pay off the interest on your mortgage for a set period of time. This can be between one and five years. After this period, you\’ll need to start making principal-and-interest repayments, which means you\’ll need to start paying off both the interest and the mortgage itself.

With principal-and-interest repayments, you\’ll need to pay both the interest and the mortgage itself from the start. These repayments are usually higher than interest-only repayments but you\’ll be paying off your mortgage sooner.

Is it harder to get a mortgage for an investment property?

It can be harder to get a mortgage for an investment property than it is for an owner-occupied home. This is because lenders see investment properties as higher risk.

To offset this risk, lenders will usually require a larger deposit (usually 20% or more) and charge higher interest rates. They might also require you to have a good credit history and a stable income.

Contact Teri today to find out more about your investment mortgage options.

How much deposit do I need for an investment property Australia?

The minimum deposit you\’ll need for an investment mortgage is usually 20%, although some lenders might accept a lower deposit. This means you\’ll need to have at least $40,000 saved for a $200,000 mortgage.

If you can\’t afford a 20% deposit, there are a few other options available to you. You could:

– Apply for a low deposit loan from a lender that offers them. You\’ll probably have to pay mortgage insurance with these loans.

– Use your home equity to help you afford the deposit on your investment property. You can do this by taking out a home equity loan or line of credit.

Get in touch with Teri today to find out more about low deposit investment loans.

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Contact Teri Maloon

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This page provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances.

Teri is known for her professionalism, efficiency, honesty and integrity as a mortgage broker in Melbourne. Whether you’re a first-time home buyer, looking to upsize, or seeking an investment property, Teri can help you.Teri’s ability to make her clients feel at ease, as well as her ability to think outside the box has earned her a stellar reputation among her clientele.