Investment loans are designed for property investors, offering features than can be attractive for borrowers with an investment property. On a basic level, investment loans work in much the same way as standard home loans, with fixed rate and variable rate options available, and features such as redraw available.
However, there are other types of loan that can also be attractive to investors. These include line of credit loans and interest-only loans.
Line of Credit Loan
With a line of credit loan, the borrower can withdraw up to a certain amount on a line of revolving credit secured against their property. The line of credit is available up to a fixed amount, and the borrower can withdraw up to that amount at any time for any purpose.
It works in a similar way to a credit card, allowing borrowers to use their funds however they want, up to a certain credit limit, while paying interest on the amount owing. Unlike a credit card though, a line of credit loan is secured against property and will usually have a much higher limit.
Interest Only Loan
Unlike a standard home that allows you to pay off the principal amount borrowed as well the interest on the loan, repayments on an interest-only loan cover just the interest, not the principal. That means with an interest-only loan, the principal remains the same.
This can be a popular choice for investors as interest-only home loans generally have cheaper repayments, and the interest paid on the loan can be tax deductible.
Why choose Lend Me?
When you choose Lend Me, you are not alone. We make it our business to make the investment loan process as easy as possible, helping you to work out what you need, compare property investment loans and complete the application process so you can focus on more important things.
When we search for property investment loans, we cut out that time-consuming work for you. We will provide you with a range of loan products, from smaller lenders all the way through to the big banks. Each lender has its own way of doing things, so we make sure you do it their way, increasing your chances of getting the home loan you want.
When you choose a Lend Me Mortgage Broker, we come to you, any time anywhere in Perth! We provide for all your lending questions, and will happily guide you through each step – from application to approval.
For more exact expert advice, please get in touch with our team today.