Investment Property Finance & Mortgages

A guide to financing an investment property and investment property mortgages...

Although your head may be spinning from trying to find the right investment property, in the right location, fitting the right demographic; an equally as head spinning process is finding the finance to begin your investment. Unfortunately very few of us have a large enough spare change purse for buying property so we turn to banks, credit unions and other financial institutions for our investment property finance.

The problem is there are so many different kinds of loans out there it’s hard to know where to begin and what questions to ask. What are the benefits of paying more for a loan with extra features? Where can you go if you need a substantial amount of funding? It can often seem like there are more types of mortgages than there are properties!

A good place to start when looking for investment property finance is with a reputable mortgage broker. Once you explain your situation and what you need they can do the hard work for you and browse through all the different loans available, selecting one that best suits your criteria. However this is a catch twenty two, because you first need to understand all the different criteria and features before laying them out to the broker. They can help, but if you give them poor information then you’re just going to get a poor mortgage. You only get out what you put in as they say and if a broker is being particularly favourable toward one mortgage, just remember that they may be getting a higher commission on that product for referring you.

So really it is up to you to do the research and decide what you want. You should know exactly how much you need to borrow, how long do you intend to take to pay back the loan, are you dependent on somebody else to make the repayments (e.g. a partner’s income or your tenant?); you may also need special terms for your loan. Think which best suits you out of structures like standard interest only, equity line of credit, standard amortizing etc.

Make Property can assist you with property investment finance. Being one of Australia's leading investment property organisations means that we have experience in assisting people in many locations around Australia, with many differing circumstances.

It may be that you just need a standard no frills mortgage or you may need something with a redraw facility. Property investment finance may appear daunting but, if you have a firm grasp of your finances and a rough plan of how you are going to pay back the loan then the rest should fall into place quite easily.