Investment loans
Start or expand your investment portfolio today.
Investment loans are financial products designed for individuals looking to invest in assets such as property, shares, or managed funds. These loans provide the capital required to make such investments with the aim of generating income or capital growth over time.
Key Features:
- Purpose-Specific: Investment loans are tailored to fund investment ventures, offering a means to leverage your capital and potentially increase your investment returns.
- Loan Security: They can be secured against the investment asset itself or other forms of collateral, which may influence the terms and interest rates offered.
- Interest Options: Borrowers can choose between interest-only payments, which minimise initial outlays and maximise cash flow, or principal and interest payments that gradually reduce the loan balance.
- Loan-to-Value Ratio (LVR): The LVR determines how much you can borrow relative to the value of the investment asset, influencing both the loan amount and the need for Lenders Mortgage Insurance (LMI).
Considerations:
- Risk Assessment: Investing carries inherent risks, and it’s crucial to consider the potential for both gain and loss, as well as your risk tolerance.
- Interest Rates and Fees: Evaluate the interest rates and associated costs, as these will impact the overall expense of the loan and the net return on your investment.
- Repayment Capacity: Ensure you have the financial capacity to service the loan, taking into account the variable nature of investment income.
- Tax Implications: Interest payments on investment loans may be tax-deductible; however, it’s important to consult with a tax professional regarding the tax aspects of your investment strategy.
Role of a Broker
As a broker, we provide guidance and support tailored to first home buyers, helping to demystify the home-buying process. Our services include:
- Market Knowledge: We offer insights into the latest loan products from a range of lenders, ensuring you’re aware of all available options.
- Personalised Service: By understanding your specific needs and financial capacity, we can identify loan solutions that align with your goals.
- Application Process: We assist in preparing and lodging your loan application, ensuring all necessary documentation is in order and compliance with lender requirements is met.
- Communication: We act as the point of contact between you and lenders, managing negotiations and correspondence to streamline the approval process.
- Ongoing Support: From pre-approval to settlement, we provide continuous assistance, answering questions and offering guidance throughout your finance journey.
If you’re ready to take the next step, please reach out to our team today.
