Services – Investment Loans

INVESTMENT
LOANS

Investment Loans are directed at the property investor market and are used to purchase investment properties and refinance existing investment debt.

Investment home loans currently have a higher interest rate compared to regular home loans in order to slow down investment lending. The two broad types of investment home loans are the same structure as regular home loans, a “Basic” investment loans and a “Professional Package” investment loans.

A basic investment home loan

is a low-cost option with no ongoing fee’s and doesn’t have an offset account, but it does allow you to pay extra off the loan. Any overpayments can then be redrawn later, should you require the funds.

A professional package home loan

will most likely have an annual package fee of between $199 and $395 and allows you to redraw, have an offset account, free credit card and quite often discounts on interest rates and insurance

There are several options available with both loans, which include selecting between fixed or variable interest rates, or a combination with a split loan, as well as choosing your repayment type, you can pick between paying principal & interest or interest only.

Please bear in mind that paying extra off an investment loan and redrawing it may have unintended tax implications, so it is advisable to consult with a tax professional in advance. Proper loan structuring is crucial with investment loans, the type of loan you choose, and the options selected will depend on your personal circumstances and should be carefully considered before a decision is made.

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