Investment property loans
Your investment loan, structured with the next property, and the one after it, in mind.
Reviewed by Anita Callaghan, Director and Principal Broker of Anita Finance, Credit Representative 557021.
Last updated .
Built for the portfolio you're growing
The way your first investment loan is set up shapes what you can do next.
Anita looks at your home loan, your equity and your plans together before recommending a structure.
That can mean separate loan splits for your home and your investment, so each one stays separate and clear.
The costs of owning an investment property
Moneysmart lists the ongoing costs of owning an investment property, including: (Moneysmart)
- council and water rates
- building and landlord insurance
- body corporate fees and land tax
- property management fees, if you use an agent
- repairs and maintenance
There are also entry and exit costs, such as stamp duty, conveyancing and legal fees, and agent's fees when you sell. (Moneysmart)
You may also have to pay capital gains tax if the property has increased in value. (Moneysmart)
Moneysmart also suggests planning for times the property is empty, rather than counting on rent to cover the mortgage.
How an investment loan runs with Anita
Your whole position
Your home, your equity, your income and your goals, looked at together.
The structure
Loan splits, repayment type and features chosen to suit your plans and your accountant's advice.
Lenders that fit
A shortlist of lenders whose investment policy may suit you, with Anita's reasoning for each.
Reviewed over time
As your portfolio grows, Anita reviews your loans so they keep working for the next purchase.
Using the equity in your home
The equity in your own home can go towards the deposit on an investment property.
See cash out refinancing for how that works, and LMI waivers if you work in an eligible profession.
Investment loan questions
What's the difference between an investment loan and a home loan?
An investment loan is a home loan used to buy a property you rent out rather than live in.
Lenders often price and assess investment lending differently from owner-occupied lending, so it's worth comparing them separately.
Should I choose interest-only or principal and interest?
It depends on your plans, your cash flow and your tax position, which is a question for your accountant as well as for Anita.
Moneysmart notes that when an interest-only period ends, your repayments increase to cover the amount borrowed as well as the interest.
Can I use the equity in my home for an investment property?
Yes, many investors use the equity in their own home towards the deposit on an investment.
Anita can set this up as its own loan split, which keeps your investment borrowing separate and clear.
What costs should I plan for?
Beyond the loan, Moneysmart lists costs such as council and water rates, insurance, land tax, property management fees and repairs.
There are also entry and exit costs, such as stamp duty, legal fees and agent's fees, and capital gains tax may apply if you sell at a profit.
Does Anita give tax advice on investment property?
Anita is a mortgage broker, so she looks after the lending side of your investment.
Your accountant is the right person for advice on negative gearing, deductions and capital gains tax, and Anita is happy to work alongside them.
Other ways Anita can help
Cash out to renovate or upgrade
The equity you've built, put to work on a renovation or your next home.
Read moreLMI waivers for professionals
Lenders that waive mortgage insurance for eligible medical, legal and other professionals.
Read moreSelf-employed, low doc and alt doc loans
Home loans for business owners and sole traders whose income comes in its own shape.
Read moreAbout Anita
Bank trained, now broking for families and business owners across Sydney and Australia.
Meet AnitaPlan your next investment.
Tell Anita about your current loans and what you'd like to buy next, and she'll come back to you with a structure that fits.
The first conversation usually takes about 20 minutes, and it gives you a clearer picture of your options.
Monday to Friday, and after hours when needed.