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Investment Property Loans

Understanding investment property loans

An investment property loan is a mortgage that can also be secured by your primary residence. The difference between investment property loans and owner-occupied loan lies in its purpose — this form of loan is intended for investing in land, houses, apartments or commercial property, while an owner-occupied loan is offered to borrowers who intend to live in the property.

Unlike a traditional mortgage, an investment property loan typically has a higher interest rate and deposit requirement. This is because lenders perceive investment properties to be riskier than primary residences. Factors such as volatility in the rental market and the risk of ongoing vacancy rates could mean the borrower does not receive a steady income from their rental property. As a result, borrowers should carefully consider their financial goals and whether an investment property loan is a good choice before taking out this type of financing.

At Capta Financial, we understand that investment property loans can be difficult to obtain — that’s why we help borrowers explore their available options and guide them throughout the entire process. Whether you’re looking to purchase a multi-unit property or refurbish an existing one to rent out, we can help you choose the loan that’s right for you. 

The professional team at Capta Financial have access to a range of competitive investment property loans from diverse lenders and financial institutions, ensuring you get the best investment property loan deal available.

What are the benefits of owning a property for investment? 

One of the biggest financial milestones in life is purchasing a property. It’s a considerable investment and one that can reap many rewards if done correctly. Not only will you have a place to call your own, but you’ll also be able to build equity to tap into later in life to fund the purchase of another property or a different financial goal. Investment properties also allow you to earn rental income and enjoy the potential for capital appreciation. Property investors also have potential tax benefits that can provide cost savings.

At Capta Financial, we understand the unique challenges and opportunities that come with investing in property, and we’re here to help you navigate the financing process and source the most competitive investment property loan for you. Of course, there are risks involved with any investment, but with careful planning and research, funding your purchase with an investment property loan can be an intelligent way to secure your financial future. 

What should I keep in mind when applying for an investment property loan? 

If you’re thinking of applying for an investment property loan, there are a few things you’ll need to keep in mind:

  • A good credit history is likely to improve your chances of getting approved for an investment property loan.
  • Lenders tend to look for investment property loan applicants with a steady income and a healthy debt-to-income ratio.
  • To avoid any surprises, ensure you understand all the terms and conditions of the investment property loan before you sign on the dotted line. 

By doing your homework upfront, you can ensure that you get the best possible terms on your investment property loan. And if you have any questions about the investment property loan process, don’t hesitate to reach out — Capta Financial is here to help you make your investment goals a reality.

How can I save money on an investment property loan?

When it comes to investment property loans, there are a few things you can do to ensure you get a good deal and save a few bucks down the line:

  • Opt for a higher deposit so that you can potentially lower your interest rate and the amount you need to borrow. 
  • Work on maintaining good credit conduct on all existing liabilities. Getting debt-free is a great way to show you can manage the responsibility of an investment property loan.
  • Consider making extra repayments on your investment property loan. This will help you pay off the loan sooner and save money in the long run. 

Compare investment property loans in Australia with Capta Financial

At Capta Financial, we understand that every client’s needs are different. Whether you’re a first-time investor or an experienced property owner, we can help you find the right investment property loan for your needs. Contact us to learn more about our services and take the first step towards owning an investment property today!

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