Investment Loans

SSA Finance can guide investors to secure financing for various residential and commercial real estate properties and rental units.

If you are focussed on planning for retirement, building an investment property portfolio can be the key to your success. The investment property may also be an income producing holiday getaway for the family and friends.

In contrast to a loan used to purchase your principal place of residence, investment property loans carry a higher interest rate and have a lower loan-to-value ratio (LVR) limit. Many lenders will allow individuals wanting to purchase their own home to borrow up to 95% of the property’s value, whereas an investment property loan is mostly limited to 90% of the property’s value.

A deposit for an investment property loan can be made with cash savings, or equity in an existing property could be used to provide additional security on the loan allowing the individual to borrow a higher amount.

When purchasing an investment property, the actual or proposed rental income that it will generate can be included as income on the investment property loan application. However, lenders will not include the full rental income amount to allow for any short-term tenant vacancies and some of the costs associated with the owning and maintaining the investment property, such as agent fees, body corporate fees, council rates, and maintenance costs.

Loans for an investment property can be fixed rate or variable interest. Investment property loans are usually separate loan accounts to other home loans for accounting purposes, as investment property loans are treated differently to loans for your own home when it comes to taxation.

Talk to SSA Finance today about purchasing an investment property.