Property investment loans are not too different from regular home loans. As with other loans you can choose between:
With most standard home loans your repayments are made up of interest charges plus a small repayment of the loan balance. In this way you slowly chip away at the original amount borrowed over the term of the loan.
Where an interest only period is present the loan principle remains the same unless you choose to make additional payments. You only have to pay the original amount borrowed if you sell the investment property or if the interest only period expires.
This type of loan is useful for investors because during the interest only period of the loan:
If you already own a property, a line of credit offers a way for you to tap into any equity you have built up in that property and, use it as a deposit for your investment property.
This type of loan is useful for investors because:
With so many loan options available it is important to have the loan in place that best suits your needs and investment strategy. That makes it worth speaking with your local Aussie Mortgage Broker who can look through hundreds of investment loans offered by a wide range of lenders to help you make the choice that is right for you.
Aussie does not provide any financial or investment advice. This document has been prepared as a factual guide only. It does not take account of your objectives, financial situation or needs. Aussie recommends that you seek independent financial advice and obtain your own professional legal and taxation advice before making an investment decision.