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We sat down with bcu's Sunshine Coast Lender David Cawthorne to discuss investment home loans.

 

1. How is an investment loan different to an owner occupied loan?

An Investment loan is for buying/refinancing of rental properties whereas owner occupied you live in.

The features are very similar with owner occupied and investment loans, so long as it is residential. Interest rates are slightly higher due to the government regulative authorities' pressure on financial institutions to slow the investment market down.

2. What can I use an investment loan for?

Purchase, construct a home or refinance a property used as an investment.

3. Is it possible to use equity from another property as a deposit when taking out an investment loan?

Yes, this is quite common practice. From a taxation point of view, people borrow 100% of the P/P plus stamp duty/legals and use the equity they have in their family home.

4. How long does the investment loan process take?

An interview could take 30 mins & then providing I have everything, I can have an approval within 48 hours.

5. Is a fixed rate better for investment loans?

All depends on your plan for the future. If you plan to hold on to the property for some time and you think rates are at their lowest, you would fix.


Important information

Information on this website is general and has been prepared without taking into account your objectives, financial situation or needs. You should consider whether this information is suitable for your objectives, financial situation and needs before acting on the information provided.