Before you jump head first into the investment property pool, make sure you know how to swim. At Make Wealth, we’ll ensure you stay afloat by helping you secure the very best investment loan in Melbourne that will best suit your lifestyle and requirements.
Finding the right investment loan in Melbourne can be an overwhelming and mundane process, particularly if you’re a first-time investor. A fluctuating property market can have a significant impact on your investment loan. With the assistance of a fully qualified Make Wealth Broker, you can rest assured that you’ll be making only smart investments and financial decisions that will benefit you in the long-term.
From analysing your finances, income and expenses right through to choosing the right home loan, comparing lenders and researching the fine print, Make Wealth endeavours to provide a streamlined and comprehensive service, from the initial consultation to securing the loan. If you’re looking for the perfect investment loan in Melbourne to suit your unique requirements, lifestyle and budget, there’s no one more qualified to assist than Make Wealth.
Having a property investment loan in Melbourne can give you a tangible asset that you can use in the future when you need it. Whether you’re looking to invest in property for retirement savings, income, tax benefits or rental return, the benefits are plentiful. And with the right loan, it could be the smartest investment you ever make for your future!
1. Investment Loan Options
When it comes to finding the right investment loan, there are several loan types you can choose. Here’s a simple definition of the different loans you’re likely to encounter during the research phase:
- Interest Only Loans: You pay the interest and nothing off the principal of this loan type. Interest loans are only available for 1-5 years.
- Principal and Interest Loans: As the name suggests, you pay off both the principal and the interest over the term of the loan.
- Line of Credit Loans: When you set up a line of credit using the equity from another property you own. A line of credit loan allows you to withdraw an amount up to a predetermined credit limit. Interest charges are repayments determined by how much credit you’ve used.
- Variable Loans: Your loans interest rate changes in response to fluctuations in the mortgage market.
- Fixed Loans: The interest rate on the loan is fixed for a term of up to 5-years.
2. Using equity to buy an investment property
If you already own a home and have significant equity, you can use that to finance your investment property. By doing this, you don’t have to have a huge deposit, and you bypass lenders mortgage insurance. If your loan is $600,000 and you owe $200,000 you have $400,000 equity you can use towards an investment property.
For FREE mortgage advice on purchasing your next investment property, get in contact with us today on 0449 978 675 or [email protected] for FREE mortgage advice.