Congratulations, on making the decision to purchase an investment property. Your next decision is just as important. Tailoring the right solution is paramount to ensure the new purchase fits your investment strategy and long term investment goals.
When looking for the right investment loan, there are many other factors other than just the interest rate that should be consider in your decision.
A Mortgage Broker like Brisbane Home Loans deals with 40 lenders in Australia which allows us to provide options across a broad range of lenders, rather than being restricted to any one lender.
YOU’RE IN GOOD HANDS – Brisbane Home Loans is confident in our ability to find the right Investment Loan for your needs at the best possible rate in the market.
When Should I Consider An Investment Property
As a general guide, there are a couple of fundamental principles to contemplate when you consider buying an Investment Property:
- Do you have enough deposit, or do you have sufficient equity in another property or your principal place of residence that can be used as a deposit; and
- Can you afford the repayments.
If you have enough equity in your principal place of residence or another Investment property, you may be able to access that equity to secure an Investment property Loan and purchase your investment property.
In this instance you could potentially borrow up to 100% of the purchase price.
If you do not have equity in another property or insufficient equity, you may be able to obtain an Investment property Loan up to a maximum of 95% of the purchase price of your investment property.
Obviously, the higher the rate of borrowing against the value of the property, the more complexity will be associated with the lending.
YOU’RE IN GOOD HANDS – We understand the challenge of purchasing your First Home and work for you to simplify the process.
Types of investment loans
Investment property loans are similar to home loans, in the sense you have the option of a variable rate loan, fixed rate loan or a combination of both, commonly referred to as a split loan.
An investment property loan can be setup as interest only, where monthly all is paid is the interest, or principal and interest, where both interest and a component of principal is being paid down each month.
The structure of your loan can differ between investors as it primarily depends on your risk strategy, repayment objectives, tax objectives and cashflow strategies.
A Principal and Interest loan is one where, as mentioned above, your repayments cover the interest associated with the loan plus a component of the principal of the loan.
The repayment amount paid each month is calculated based off the loan term (i.e. 30 years, 25 years etc), the interest rate and the loan balance. Depending if the loan is fixed or variable can also affect what your repayment is month to month.
As suggested by the name, if your loan is Interest only, then each month your repayments are setup to cover the interest component of your loan. Meaning the balance of the loan is not reducing during the interest only period.
Interest only loans are usually set up to last for 1 – 5 years before they switch back to Principal and Interest.
As repayments are usually less on an interest only loan than a principal and interest loan, investors can benefit from greater cashflow from their investment.
Variable loan provides greater flexibility to investors as it allows them the ability to make additional repayments on their loans, plus also allows them to have an offset account attached as well.
Variable loans are ideal when interest rates are stable or when rates are on the downward trend. When rates are rising, some clients will consider fixing their rate to protect themselves against future increases.
Fixed rate loans are linked to a term which is generally between 1 to 5 years.
During the fixed term of the loan, the interest rate does not change irrespective of how the interest rates are moving in the market.
Choosing a fixed rate mitigates the risk of an increasing interest rate and provides certainty I the repayments each month. However, the downside is that you can also miss out if interest rates do go down during your fixed rate term.
Split rate home loans are simply a combination of a variable loan and a fixed interest loan.
This strategy is useful where you may want to manage the risk of some of your debt whilst having a Variable component which can be repaid faster if necessary.
Each lender has a cap on the maximum amount of money it will lend you versus the price of the property. As a general rule, most lenders will only lend 80% of the purchase price for a residential investment loan. This is referred to as the Loan to Value Ration or LVR.
If the amount of lending is higher than the lenders approved levels (i.e. 80%) then the lender will require you to take up Lenders Mortgage Insurance or LMI.
LMI protects the bank against any risk if you were to default on your mortgage. The insurance policy is in place to protect the lender rather than the customer.
Brisbane Home Loans can assist you in calculating how much LMI you should allow once we know the purchase price and the amount of deposit available.
Deciding when to refinance an investment loan is no different to a residential loan.
Interest rates vary over time as does the motivation of lenders. The financial markets are very competitive with new players entering the market at times targeting specific sectors of the market.
This creates competition and often new clients are offered better rates to inspire switching. Refinancing Your Investment Loan does not need to be difficult when you are aligned to a good Mortgage Broker like Brisbane Home Loan. Our Specialists will identify the right loan for you, assist you with the application and then see it through until your loan is established with the new lender.
Over a 10-year investment, it is not unreasonable for an investor to mover their loan to 2 or 3 lenders.
*Terms and Conditions apply for Rebate and Interest Rate Offering. Comparison Rate 4.51%. Limited time only. Terms & Conditions Apply. This offer is subject to standard lending criteria. All rates are effective 11 October 2018. Comparison is based on $150,000.00 over 25 years. This Comparison rates apply only to the given example.
Make an Online Application and See If You Qualify for A Loan
We have been working with Daniel and the team at Brisbane Home Loans for the purchase of our first home, being first home buyers it has been great having the knowledge of Daniel & the team at Brisbane Home Loans to support us. We can’t thank them enough for their support and making themselves available to answer all of our questions. I’d highly recommend Brisbane Home Loans.
Christina Perry
Finance & Mortgage Brokers You Can Trust & Rely On
Our motto is simple “Clients come first.” Whether you are a first home buyer or an experienced property investor, our team of first home loan brokers in Brisbane will go out of their way to get you a deal that offers you the best rate at the lowest possible cost.
Why Clients Choose Brisbane Home Loans?
- Impressive Customer Ratings
- We Do All The Hard Work for You
- Our Experienced Mortgage Brokers Get You Rates Lower Than What is Published by Lenders
- We Work For You Not The Lender
- We Can Meet You Wherever It is Convenient To You
Talk to Our Mortgage Experts & See How We Can Help You!
At Brisbane Home Loans, we guarantee 100% transparency and clear communication. From the moment you call us, we will work round the clock and ensure your home loan application is prepared, lodged and approved quickly and effortlessly. Call us at 3889 9250 and put us to the test.
We Offer More Choice to Our Clients
In this day and age of diversity and choice, why limit yourself to the options being provided by one lender?
Brisbane Home Loans has access to over 40 lenders, with more than 100 different products that could better suit your needs.
We don’t just focus on one bank to resolve your Financing needs. Our approach is to shop around our panel of lenders, secure the finance you need and ensure it is the best possible deal for your specific circumstance.
Brisbane Home Loans Finance Specialist have the expertise and the proven track record to advise you on your Finance needs.
"Good Old Fashion Service" - Every Day
Why Choose Brisbane Home Loans
You're In Good Hands
Brisbane Home Loans is all about good old fashioned personal service without exception.
We Find The Right Deal For You
We take the time to listen to your needs and then search the market for the best products that satisfies your needs at the lowest possible cost to you.
Ongoing Comittment
We continue to work for you after the deal is finished, ensuring that we asess any new offers that become available which may improve your current deal.
One Stop Lending
We give our clients access to Personal Loans, Home Loans, Investment Property Loans and Commercial Loans. You always only deal with on person for all your lending services.
How We Work With Our Clients
We can meet clients in our office, in their home, their office or the local coffee shop. Our initial interview will helps us understand the clients needs in the short, medium and long term so that we can find the best possible lender for your loan.
The world of financing continues to be more and more complicated. Our Lenders have experience in finding the right product to meet the specific needs of each of our clients. During this phase, we identify two to three options that may be suitable.
Our Lending Specialists will present to you a number of options available outlining the differences, benefits and downfalls of each option presented. Our preferred option and reasons why, we consider this the best fit for you will be clearly explained.
Our Lending Specialists work with our clients to have all documentsation signed, submitted to the lending institution and processed through to approval.
We pride outselves on client service which is why our Lending Specialists establish a reasonable review timeframe where they touch base with our Clients to ensure everything is working as planned. During this review, the client is made aware of any new financing options in the market.
Brisbane Home Loans is not about one off loans. We truly care about our clients, which is why we stand by their side beyond the completion of the loan.
Testimonials
Being Our First Home It Was Great Having The Knowledge of Daniel & The team at Brisbane Home
We have been working with Daniel and the team at Brisbane Home Loans for the purchase of our first home, being first home buyers it has been great having the knowledge of Daniel & the team at Brisbane Home Loans to support us. We can’t thank them enough for their support and making themselves available to answer all of our questions. I’d highly recommend Brisbane Home Loans.
Christina Perry
We Saved More Than 1% On Our Existing Home Loans
We didn’t realize how important it was to review our home load until we engaged with Daniel and Jordan at Brisbane Home Loans. They helped in submitting our application which resulted in a saving of over 1% in interest on our loans, plus a reduction in our on going bank fees. I would recommend this business and thank Daniel and Jordan for making the process so easy.
Sam and Nicky
It was Our First Home and We had No Idea. Thanks to The Team From Brisbane Home Loans
Daniel and the team at Brisbane Home Loans were super helpful and friendly to me as it was my first home loan and I had no idea! They answered all my questions and were very hardworking. Would definitely recommend to a friend.
Tom Harvey
They Made Buying Our First Home Easy and Fun. Thanks
The team at Brisbane Home loans have been super helpful and extremely professional to assist us with all our first home questions.
will be recommending them to everyone I know looking to buy!
Nathan Cook
Thanks for Helping me Turn my Dream into a Reality
Service was great, very informative and kept me up to date on all progress and all steps. Follow up after it was all done and dusted was also great. Took the stress out of it which was a great help for my busy life. I would totally recommend Dan and Jordan to anyone.
Thanks for helping me get my dream into a reality.
Emma Schefe
Car Loan Approved In Less Than 3 Hours – So Wrapped
I could not believe how quickly Jordan was able to organise my car loan. He was so helpfull and I am truly greatfull.
Dan Mutters
Honest, Hardworking And There When You Need Him.
Honest, hardworking, and is there when you need him. Always answered our questions in a way that we can understand, since we knew nothing about house loans!
Shonelle Wang
Nothing Was Too Hard Despite My Efforts To Make It Hard!
Dynamic, dedicated and always available – highly recommend to anyone buying a new home or looking to shop around. Nothing was too hard despite my best efforts to make it hard 🙂
Brenton Dunn
They Also Do Car Loans and Get Them Approved Quickly
I was told about Brisbane Home Loans by a friend and did not know they did car loans. They were really great, explained things really well and had the loan approved in just a few hours even though the loan was for more than $100,000. Got in my car a lot faster than I thought.
Thanks Jordan and Dan
Brisbane Home Loans Helped Us Build Our Dream Home
Daniel and the team helped us build our dream home. Really made the process very simple and got us a great deal.
Julia Pearce
Impeccable Service and A Dream To Work With
Brisbane Home Loans have been an absolute dream to work with. All the stress of buying our first home was swept away once we stepped foot in their office. They have a wealth of knowledge and have gone above and beyond to make the process as easy as possible for us. Impeccable service. Would highly recommend their team!
Chanea Ellis
Brisbane Home Loans Were Passionate About Getting Our Dream Financed
Daniel and Jordan showed us they are knowledgeable, professional, committed to the deal and passionate about getting our dream financed. We were kept informed through the whole process, we had loads of questions answered, and they went above and beyond. Infinitely grateful we were introduced to Brisbane Home Loans.
Lauren Bayliss
They Made The Process Easy And Hassle Free
“Brisbane Home Loans is marvellous. I sincerely want to thank Daniel for his hard work patience and professionalism. Right from the beginning Daniel made the whole process easy and hassle free. I am going to recommend to all of my friends. Keep it up Daniel
Thanks” Vinod
Jordan is an Absolute Professional in all Areas of his Business,
Jordan is an absolute professional in all areas of his business, he is reliable, hardworking, he provides an outstanding service and has always been an absolute pleasure to work with. I would not hesitate to recommend his services to anyone seeking any form of loan.
Sue
Being My First Home Loan I had No Idea. Daniel Saved Us
“Daniel and the team at Brisbane Home Loans were super helpful and friendly to me as it was my first home loan and I had no idea! They answered all my questions and were very hardworking. Would definitely recommend to a friend.”
Tom
We Can’t Recommend Brisbane Home Loans Enough!
“We can’t recommend Brisbane Home Loans enough. From beginning to end, Dan has been very professional, friendly and polite. He kept us fully informed all throughout the process and made us feel comfortable to deal with him. Very helpful indeed!”
Ashni
Brisbane Home Loans Got Me a Better Rate Than I was Expecting
“The team at Brisbane home loans have been such a good help. I told them exactly what I wanted and they made it happen. The rate they got for me was way better than what I was expecting. If you’re looking for low rates and a quick and easy loan, these guys are highly recommended”
Adrian
Brisbane Home Loans are sincere when they speak of “old fashioned service”
Brisbane Home Loans are sincere when they speak of “old fashioned service”. They were faultless and saved us a lot of money. I would highly recommend Jordan and Dan to anyone looking for any loan.
John