Product:  Investor Loan

Introduction

This type of loan is used to fund the purchase of an investment property.

Key Features & 

Generally, lenders are not prepared to provide a loan in excess of 97% of the security value. Having said that, you could combine your home and an investment property to secure the loan and effectively use the equity in the home to make up the different between the loan amount and the value of the security.

Advantages

Investors in property are able to use "negative gearing" to maximise income tax deductions.

Considerations

Interest rates for loans secured by onwer-occupied properties are comparable to the interest rates on investment property loans.

Suitable for

Property investors

Example of product

 

Macquarie Mortgages' 100% Investor Loan

RAMS Home Loans' Investor Home Loan

Yes Home Loans' Equity Access Standard