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KEY FEATURES

Maximise Your Property Investment Portfolio

  • 1. Types of Investment Loans

    Explore loan options like principal and interest, interest-only, or split loans to suit your financial strategy.

  • 2. Qualifying for a Loan

    Meet lender criteria with good credit, stable employment, and genuine savings for more suitable approval chances.

  • 3. Understanding Loan Costs

    Be prepared for expenses like stamp duty, mortgage insurance, and ongoing property management fees.

  • 4. Tax Benefits Explained

    Claim deductions on interest, maintenance, and other costs to maximize your investment returns.

Strengthen Your Investment Game

Know where you stand before you invest. Use our calculator to check your borrowing power and build a stronger property portfolio.

Check Your Borrowing Power
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INVESTMENT LOANS

Maximize Your Borrowing Power

Discover how much you can borrow to expand your investment property portfolio.

Borrow Up to 95%

You can access up to 95% of your property’s value, though mortgage insurance may apply.

Leverage Equity or Guarantor

Using a guarantor or existing property equity could allow you to borrow over 100% of the property’s value.

TYPES OF LOANS FOR INVESTMENT PROPERTIES

Choosing the right investment loan can help maximize your returns.

Principal and interest loan

Interest-only loan

Fixed-rate loan

Line of credit loan

Genuine savings

Split loan

Why Choose US

Your Trusted Investment Loan Specialists

At Everrich Finance, we specialise in securing tailored investment property loans that align with your financial goals. Our dedicated brokers offer comprehensive guidance, through a streamlined process so that you can focus on growing your investment portfolio with confidence.

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Professional Guidance

Our experienced brokers provide personalised advice to help you make informed investment decisions.

Streamlined Process

From application to settlement, we handle the details for a transparent loan application experience.

Tailored Solutions

We customize loan options to match your unique financial goals and investment strategy.

Maximised Returns

We help structure your loan to optimise tax benefits and potential capital growth.

We compare loans from a wide range of lenders

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CORE ESSENTIALS

Home Loans For Investment Properties Explained

An investment home loan is specifically designed for purchasing property as an investment, rather than to live in for owner occupied purposes. These loans are used to purchase properties for rental purposes and take advantage of capital growth allowing investors to get rental income and gains from capital appreciation.
At Everrich Finance our advisor can help you choose the most suitable loan for you so you can make more informed decisions with your investment plans.

Investment home loan types

Choosing the right investment loan can help maximize your returns. There are five common types of investment loans to consider:
  • Principal and interest loan: This is when the borrowers make repayments for both principal and interest for the term of the loan. This type of loan is usually used by investors who want to build equity and pay down their loans over time.
  • Interest-only loan: You can choose to pay interest only for a set term to help reduce your payment in the short term. You can choose to pay interest only between 1-10 years. Investors use this strategy to help reduce cash flow pains when anticipating capital growth in the invested property. By paying interest only you will extend your loan term, because you are not paying any of the principal off during the interest-only period.
  • Fixed-rate loan: A fixed-rate loan offers certainty in your interest rates generally between 1 to 5 years. This means your repayments remain consistent during that time. After the fixed period finish, your loan will revert to variable rate offered by the bank at the time.
  • Line of credit loan: A line of credit loan is like an overdraft account which allows you to borrow up to a specified limit and pay interest only on the amount you use. A line of credit generally attracts a higher rate of interest because of its flexibility.
  • Split Loan: A split loan allows you to choose different ways to divide your loan. You might split your loan part fixed and part variable. For example, if you have a $800,000 investment property loan, you might choose to fix the interest rate on $400,000 and keep the remaining $400,000 on a variable rate.
Speak to us today on (03) 9034 5223 or enquire online.

Who can qualify for an investment home loan?

The approval criteria for investment loans can vary with different lenders offering different policies and calculations towards negative gearing.
Investment loans generally attract higher risk than standard home loans, so financiers want to make sure their applicants have a strong financial position.
The basic lending requirements for investment home loans are:
  • You should have 5%–10% in genuine savings.
  • If you already own property some lenders want to see equity in other properties that you own.
  • A good credit history.
  • An above-average credit score >550.
  • Stable employment.

Your trusted advisors for investment property loans

At Everrich Finance we specialize in securing investment property loans. Our experienced brokers are dedicated to making your application process as convenient and easier to navigate as possible, by guiding you at every step of the way.
Simply give us a call on Contact us: (03) 9034 5223 or enquire online for free and we’ll sort out the rest so you can focus on your investments.

How much can I borrow for an investment property?

You can borrow up to 95% of a property’s value for an investment property. But this will usually mean you will have to pay for mortgage insurance.
If you have a guarantor or own other property, you might be able to borrow over 100% of the property’s value.

Approval process

Here is a brief overview of the investment home loan approval process:
  • Pre-approval: Before you start looking for property we recommend you to get a pre-approval first. This is when you provide us with your financial details so we can find out your borrowing capacity. Pre-approval also strengthens your offer when buying a property so you can purchase with more confidence.
  • Documentation: Once you have chosen a property, gather and submit necessary documents to us, such as proof of identity, income and details of current debts.
  • Loan application: Submit your loan application, including all your financial details and the property information.
  • Property valuation: The lender will assess the property value to ensure it meets the bank's criteria.
  • Assessment and approval: The lender reviews your application and the valuation. If everything is in order, you will get a formal loan offer.
  • Conditional approval: Sometimes, approval comes with some conditions that must be met before finalizing the loan approval. This could involve providing additional documentation to support your application.
  • Loan offer: Review the loan offer carefully. The loan offer includes the loan amount, interest rate, and terms. Once you are happy with the loan, accept the loan offer.
  • Settlement: The lender will transfer the funds to complete the property purchase. Your solicitor will finalize any legal and administrative tasks to finalize the property transfer.
Simply give us a call on Contact us: (03) 9034 5223 or enquire online for free and we can walk you through this process.

What kind of fees can I expect with purchasing an investment property?

Below is a rundown of the key expenses you should anticipate:
  • Lenders Mortgage Insurance: This is only required if you borrow more than 80% of the purchase value assuming you do not have a parental guarantor or equity from other properties.
  • Stamp Duty: A state government tax based on the property’s price or value. The cost of stamp duty varies between each state.
  • Legal and Conveyancing Fees: Costs for a solicitor or conveyancer to handle legal work to assist with your property transfer.
  • Settlement Costs: Administrative fees for registering the property and transferring ownership.
  • Inspection Costs: Fees for building and pest inspections to make sure there are no unexpected repair and maintenance issues.
  • Ongoing Costs: Once you own the property, there are ongoing costs such as property management fees, insurance, maintenance, land tax and council rates. Understanding these costs helps you plan and budget for your property investment.

Taxes associated with owning an investment property

Owning investment properties in Australia attracts different taxes. Here’s a summary of different taxes to consider:
1. Rental Income: Income earned from renting out your property must be declared on your tax return.
2. Capital Gains Tax (CGT): When you sell the property, any profit made is subject to Capital Gains Tax. However, if you hold the property for more than 12 months, you may be eligible for a 50% discount on the capital gain.
3. Deductible Expenses: You can reduce your taxable income by claiming deductions for various expenses related to your property, including:
  • Interest on mortgage
  • Property management fee
  • Maintenance and repairs
  • Body corporate fees
  • Land tax
  • Council and water rates
  • and insurance
4. Capital Works Deduction: You can claim deductions for the cost of constructing or renovating the property. This includes structural improvements and repairs that extend the property’s useful life. We suggest getting a quantity surveyor to arrange a depreciation schedule for you so that you can maximize the deductions against your property.
5. Negative Gearing: Is when the rental income is less than the holding costs of owning the property (such as mortgage interest, management fees, insurance, land tax, council rates and maintenance).
Understanding the tax implications and leveraging available deductions and concessions can greatly impact your investment returns. We suggest that you get financial advice specific to your situation to ensure that you get a solution suitable to your financial needs.

How to make an offer to purchase an investment property?

Steps to consider:
  • Research the Market: Start by investigating market trends. Review recent sales data and current market conditions. Use online tools, speak to local agents, review property reports. When comparing recent sale history, compare properties based on size, location and proximity to amenities.
  • Determine Your Offer Price: Based on your research make a competitive offer. You may decide to engage in a property advisor to help review your offer.
  • Prepare Your Offer: Draft a formal, written offer; normally this is prepared by the real-estate agent. Your offer should include the proposed purchase price, deposit amount that you are paying, and any conditions (such as subject to a building inspection or finance approval).
  • Submit and negotiate: Submit your offer to the vendor or their agent. Be ready for negotiations, as other purchasers may offer counter-offer. There may be a few back and forth before reaching the final price that both parties are willing to accept.
  • Sign the contract: Once an offer is accepted, review the formal contract to ensure all special conditions are included in the contract. If you are unsure, seek advice from your legal professional.
  • Final Steps: Before finalizing the purchase, you should arrange property inspections (such as for the building or pests) and formalize your loan approval.
These steps will help you be more prepared and secure your investment property. If you have any specific questions please reach out to Everrich Finance and our team can help out.

Staying on top of your investments

  • Use resources like the Australian Bureau of Statistics and property tools to understand local demographic and economic trends.
  • Connect with professionals like real-estate agents, accountants, financial planners and property advisors who specialize in property investments.
  • Be prepared for market fluctuations and be in a position to weather the storm.
  • Always have a back up plan and be ready to sell the property. So that means that you maintain the property so that it remains attractive to future buyers or investors.
Work with a tax adviser to claim all possible deductions like depreciation, maintenance, rates, insurance and interest deductions. This is important so that you can maximize your investment’s financial performance, as they affect both capital gains and rental.
INVESTMENT PROPERTY LOAN FAQ

Home Loans For Investment Properties: Your Questions Answered

  • 1. What is the difference between investment loan and home loan

    Investment loans are for properties intended to generate income or profit. These loans generally have higher interest rates and stricter lending criteria than home loans used for owner-occupied purposes.

  • 2. Can I use equity in other property to buy an investment property?

    Yes, you can use the equity built up in your current home or another property as a deposit to buy an investment property. This is when you borrow against equity in other properties that you own.

  • 3. What is the benefit of investing in property?

    The benefits of investing in property can assist build wealth by:
    1. Potential capital growth in the property
    2. Rental income
    3. Tax deductions on loan interest and related property holding expenses
    4. The ability to leverage equity in the property to invest in more properties.

  • 4. Can I borrow 100% of the property value?

    Yes, you can borrow 100% of the property value to purchase an investment property by either using a guarantor or leveraging equity in other properties that you already own. A guarantor, such as a parent or sibling, can offer their property as security, allowing you to borrow up to 105% of the property's value. Alternatively, you can use the equity from an existing property as a deposit, which may also allow you to borrow up to 105%..
    Without these options, the maximum you can borrow is 97% of the property's value including lenders mortgage insurance.

  • 5. Can I get an investment property loan with bad credit?

    Yes it is possible to get an investment loan even if you have bad credit. But it will attract higher interest, higher fees and be subject to stricter lending conditions.

  • 6. Can I refinance my investment property?

    Yes, we can assist with refinancing an investment property and it can help you secure more suitable rates, more suitable fees, more suitable terms and allow you to access equity.

Testimonials

Love from Clients

James and his team offered outstanding service for my needs. Their expertise and professionalism made the process incredibly smooth. They provided personalized guidance, ensuring I understood all my options. Their…

Kim-pan Lau
Property Investor

We applied for a home-loan for our investment property and were very happy with the assistance we received from Murray Kha at Everrich Finance Melbourne. His knowledge and attention to detail made…

Khyati Dedhia
Property Investor

When searching for a home loan you need to be able to rely on someone you can trust to be able to present all the options available and give you…

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Find Out Your Eligibility Today

Unsure if you qualify? Let us assess your situation and explore the home loan options available to you for your investment property.

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