Investor Mortgages

Are you looking to expand your investment portfolio by delving into real estate? There are a variety of options to achieve your investment goals and start earning a return. You could either receive rental income or earn a profit on the future resale of the property, or both.

Taking out an investor mortgage is slightly different to acquiring a regular residential mortgage. The interest rates tend to be slightly higher for both variable and fixed rate investor loans. You may also find that comparison rates and fees will be higher as well. However, as with residential loans you will be looking both fixed and variable rates, but investors tend to elect interest only loans. Your mortgage broker can help with choosing the best option for you.

Buying an investment property can help you create the wealth you desire for yourself and for your future generations. However, qualifying for an investment loan can be quite complicated. As they are considered a generally high-risk loan, you must be in a very secure and strong financial position. Before applying for the loan, just like a regular residential loan, you should have a deposit genuinely saved. You will need a minimum of  5%.. But you should keep in mind that if you’re borrowing more than 90% of the total amount you need, you may find some lenders require equity in other properties or evidence of other wealth. Other things that could affect your application include: your credit history and score and what kind of employment you currently hold.

Using a mortgage broker is imperative to finding the right investor mortgage for you. Brokers can help with understanding tax rebates and how to further your wealth within your investment. They can assist with comparing loans from the best lenders and how you can select the most appropriate one for you.

Mortgage brokers are professionals who understand the – sometimes – complicated world of finance and investment. They can help you comprehend negative gearing, capital gains tax and depreciation. Also, there are quite a few lenders that prefer to work with investors and despite the fact that investment loans are typically higher risk, they will encourage investors to apply with them. This is another reason brokers are important as they know exactly which banks to recommend for your goals and desires.