Common questions about investment loans
Q: Will an investment loan be any different to my existing loan?
There are few differences between what you need to do to borrow for a property you'll live in and for one you'll rent out. Some lenders charge a higher interest rate for investment properties because their risk may be higher.
Q: Can I use the equity in my home as a deposit?
If you have owned your own home for a few years, you will have built up quite a bit of equity in your property. Instead of finding a cash deposit to buy an investment property, you can use this equity as the deposit. When you buy a property, costs such as establishment fees, solicitor fees and stamp duty add up to a few thousand dollars. Instead of trying to find cash to pay these fees, take them into account in your borrowings.
Q: Why invest in property?
Investment properties have many benefits when building long-term wealth. If you take the time and select your investment properties well – for example, to meet the demands and lifestyle expectations of the changing demographic – property can deliver good returns for long-term investors.
Q: How much money can I borrow?
The amount you can borrow is commonly known as your borrowing capacity. Your borrowing capacity will differ from lender to lender. To establish your borrowing capacity, call us to arrange an interview for an assessment of your situation.
Q: What does it cost to get a loan through IMFS?
IMFS does not generally charge a fee for service, as we receive payment from the bank. In the event that there is no fee paid by the bank, there may be a nominal fee for service charged, however, this would be the rarity and not the norm.