Strategic Financing for Your Investment Ambitions

Expand Your Wealth through Property Investment

Investing in property remains a cornerstone of wealth building in Australia. With the landscape of investment loans continually evolving, having a dedicated mortgage broker to navigate through the complexities is invaluable.

Contact us today, we are ready to offer tailored finance solutions for your investment strategy. Whether facing borrowing challenges with current lenders or exploring new opportunities, our extensive network of 40 lenders ensures we have access to flexible and favourable financing options.

aPPLY ONLINE CALL: 1300 66 12 11
Select the Right Investment Loan for Your Portfolio

Your Pathway to Property Investment Success

Choosing the correct finance structure is as crucial as selecting the right property. With the investment lending landscape more complex than ever, Mortgage World Australia is your ally. We offer a variety of loan options for both residential and commercial investments, tailored to fit your long-term wealth-building strategy. Our expertise can illuminate your path, ensuring you make informed decisions to maximise your investment potential.

Types of investment loans

Investment loans can be broadly placed in one of the following two categories

Residential Investment Loans

Ideal for investors looking to enter or expand within the residential property market, these loans are designed to cater to the purchase of rental properties, ensuring competitive rates and flexible terms.

Commercial Investment Loan

Suited for those aiming to invest in retail, office spaces, warehouses, or other commercial properties. Leverage our commercial loan options to fuel your business growth or diversify your investment portfolio.

Residential investment loan

Mortgage secured by a residential investment property (e.g. house, townhouse or unit)

▪ If you have no other security to offer a maximum loan of 95% of the purchase price may be available.
▪ If you own other property you may be able to borrow 100% of the purchase price plus costs.

Commercial investment loan

Mortgage secured by a commercial investment property (e.g. retail shop, office, factory etc.)

▪ Generally the maximum loan is 60-80% of the value, depending on the type of security.
▪ If you own other property you may be able to borrow 100% of the purchase price plus costs.

FAQs

Not sure? Have additional questions? Try here 

The short answer is no. If you have a lot of equity in your current home you can borrow against that equity to fund the deposit and purchase costs on an investment property purchase.

Most lenders require a minimum internal unit size of somewhere from 40-50sqm. This doesn’t include balconies and car spaces. If you can contribute a 20% deposit we have options that will allow smaller units and even studio apartments.

This is when more than one property (collateral) is used to secure a loan or multiple loans. This is a method used by investors to borrow 100% of the purchase price of an investment property plus the purchase costs such as stamp duty. Structuring your investment purchases like this can hinder your future investment goals and puts your lender in an avoidable position of power. It makes it more difficult and costly to change lenders and to access your equity down the track. Also if one of the properties decreases in value it may impact your ability to borrow funds for further investment.

We always recommend that you offer only one property as security for each loan. This gives you much greater flexibility.

An interest only loan is where you are only required to pay the interest each month and there is no requirement to pay down the principal balance of the loan until the interest only period finishes. Interest only period can range from 1 year to 15 years.

Interest only loans are very commonly used by investors since it maximises the interest tax deductions they can claim and minimises the required repayment which helps the monthly cash flow.

In March 2017 the Australian Prudential Regulation Authority (APRA) imposed a cap on lenders restricting them to lending no more than 30% of new residential loans as loans with interest only repayments. This has resulted in the interest rates on interest only loans being higher than principal and interest rates by up to 0.50% p.a.

Why not give us a call, or send us an email and get a direct response from one of our finance experts. We’d be happy to give you a hand and help point you in the right direction.

TALK TO A BROKER TODAY

Helping you find the right loan product for your needs.
aPPLY ONLINE CALL: 1300 66 12 11