Build wealth through property
We are experts in investment property loans. We understand the nuances of financing residential property investments and help you build long-term wealth.
Finding The Right Mortgage Broker
An investment property loan is a home loan specifically designed for purchasing a residential property to rent out rather than live in, with features such as interest-only repayments and flexible terms suited to investment strategies. At Gateway Finance we are experts in investment property loans. We understand the nuances of financing residential property investments. Use our borrowing power calculator to assess your investment borrowing capacity, or the loan repayment calculator to model your investment loan repayments.
A residential investment property loan is tailored specifically for investors looking to build wealth through property ownership. These loans offer a range of features to support investors, including flexibility in choosing between fixed or variable interest rates. Investors can also opt for interest-only or principal and interest repayment structures, depending on their cash flow objectives and investment strategy. Loan terms typically range from 10 to 30 years, providing investors with options to align with their long-term financial goals.
Key considerations include:
- Location: Choosing properties in high-growth areas with strong rental demand can enhance capital appreciation and rental yields.
- Property Type: Selecting the right property type, whether it's apartments, houses, townhouses, or duplexes, depends on factors such as target market demographics, rental demand, and investment objectives.
- Rental Demand: Assessing rental demand in the chosen location is crucial to ensuring a steady stream of rental income and minimising vacancy periods.
While property investment can be lucrative, it's not without risks. Market fluctuations, economic conditions, and unexpected expenses can impact investment performance. As your expert mortgage brokering firm, we can help!
Owner-occupied or investment loan: what is the difference?
The loan structure differs depending on whether you will live in the property or rent it out.
| Feature | Owner-Occupied Loan | Investment Loan |
|---|---|---|
| Purpose | Financing a property you intend to live in | Financing a property you intend to rent out |
| Interest rate | Typically lower rates as lenders see lower risk | Rates are usually slightly higher to reflect investment risk |
| Repayment type | Principal and interest is standard | Interest-only available to support cash flow and tax strategy |
| Tax treatment | Generally no tax deduction on interest | Interest may be deductible as an investment expense |
| Lender assessment | Based on your income and living expenses | Includes rental income potential and existing debt obligations |
| Best suited to | Home buyers purchasing their primary residence | Investors building a property portfolio for income and growth |
Purpose
Financing a property you intend to live in
Financing a property you intend to rent out
Interest rate
Typically lower rates as lenders see lower risk
Rates are usually slightly higher to reflect investment risk
Repayment type
Principal and interest is standard
Interest-only available to support cash flow and tax strategy
Tax treatment
Generally no tax deduction on interest
Interest may be deductible as an investment expense
Lender assessment
Based on your income and living expenses
Includes rental income potential and existing debt obligations
Best suited to
Home buyers purchasing their primary residence
Investors building a property portfolio for income and growth
Choosing the correct structure from the outset can save you thousands and avoid costly refinancing later.
Your investment finance partner
As a property investor, securing financing for your real estate investments can be a complex and time-consuming process. That's where Gateway Finance comes in. By working with our knowledgeable and experienced team, property investors can enjoy a range of benefits that can help them achieve their investment objectives.
First and foremost, we help you find the right loan product. We have access to a wide range of lenders and loan options, including traditional banks, credit unions, and private lenders. This allows us to find loan products that best fit your unique needs and requirements. Whether you're looking to purchase a rental property, or pursue another investment strategy, we can help you find the loan that works best for you.
Overall, working with us is one of the smartest moves you as a property investor can make. By providing access to a wide range of lenders, negotiating better loan terms, and offering ongoing support and guidance, we will help you achieve your real estate investment goals.
Benefits of working with a mortgage broker
Working with a mortgage broker can provide several benefits when financing your investment property.
Access to a Wide Range of Lenders
We work with a variety of lenders, including traditional banks, credit unions, and private lenders to increase your chances of finding a loan that meets your specific needs and requirements.
Tailored Loan Solutions
A broker can help you find a loan product that is specifically designed for your investment goals, whether you're looking to purchase a rental property or build a shares portfolio.
Expertise and Guidance
As experts in our field, we have a deep understanding of the mortgage industry, including the latest trends and best practices. This knowledge can be invaluable as you navigate the loan process.
Time Savings
With us doing the legwork for you, you can save significant time and energy in researching and comparing loan options.
Negotiating Power
As mortgage brokers, we can often negotiate better rates and terms on your behalf, which can save you money in the long run.
Ongoing Support
Even after your loan is approved, we love to provide ongoing support and advice to help you maximize your investment potential.
How it Works
We want to help you achieve your investment finance needs and get you in your new property sooner. Here's the process on how we get your investment loan approved quickly.
Step 1
Initial discovery call
Chat with us to discuss your specific financial goals and dreams.
Step 2
Research, Planning and Comparison
We work hard to present to you the best solution, lender and interest rate based off our initial discovery call.
Step 3
Submit your application
We will help you complete all the necessary paperwork and requirements with your chosen lender to get your application sorted.
Step 4
Ongoing Support
We will monitor your application and keep in touch along the way. We work behind the scenes to make sure everything is as smooth for you as possible.
Frequently asked questions
Common questions about investment property loans, answered by our brokers.
How much deposit do I need for an investment property?
Most lenders require a deposit of at least ten to twenty percent for an investment property, though some accept less with Lender's Mortgage Insurance. Investment loans generally require a larger deposit than owner-occupied loans. Your broker can assess your equity position and identify lenders with the most flexible deposit requirements for investors.
What is the difference between an investment loan and an owner-occupied loan?
An investment loan finances a property you intend to rent out, while an owner-occupied loan finances a property you will live in. Investment loans typically carry slightly higher interest rates and may offer interest-only repayments. Lenders assess investment loans using rental income potential alongside your existing debts and living expenses.
Can I use equity in my home to buy an investment property?
Yes, you can use equity built up in your existing home as a deposit or security for an investment property loan. Lenders typically allow you to borrow against up to eighty percent of your property's combined value. Your broker can calculate your available equity and structure the loan to protect your primary residence.
What is interest-only lending and when does it suit an investor?
Interest-only lending means your repayments cover only the interest for a set period, typically up to five years, with the principal unchanged. It suits investors who want to minimise monthly costs, maximise tax deductibility of interest and use rental income and capital growth to build wealth. Your broker can model the full impact.
Ready to grow your property portfolio?
Chat with our experienced brokers today and let us find the right investment loan solution for you.
Book a free consultation