There’s a lot to consider when you look at purchasing an investment property, such as how to choose the best investment loan that meets your needs and goals. A good investment loan can make property investment a much smoother process. At we will work with you and your financial/tax advisors to ensure that the investment loan you choose is the right one to suit your purposes.

Investment loans vary depending on what you are looking to achieve, and can be either very simple (like your standard home loan), or something more complex that helps you make effective use of tax, gearing and repayments. You can also make good use of loan features such as redraw, offset and additional repayments to help manage your investment loan.

Investor borrowers are the most sought after customer by banks and lenders due to their equity position and borrowing history. It is important that you use this position to secure the right loan for your finance needs at the most competitive offer.

To assess your requirements and to negotiate a competitive deal, contact us at.

Interest only fixed and variable rate home loans

Interest only loans are a good choice for investors who are focused on achieving capital growth in the short-medium term, and often go hand-in-hand with negative gearing. These types of loans will usually have lower repayments than a principal and interest loan.

A fixed rate interest only home loan usually has a term of 1 to 5 years, after which you will need to renegotiate the fixed interest only term or convert to a variable rate interest loan.

A variable rate interest only loan works in a similar manner but with the interest required varying with market interest rate fluctuations. It’s important to note that a variable rate interest only loan may not have the same breadth of features that are available as one where principal and interest repayments are required.

Consider the questions below and if you answer yes to any of them, refinancing might be the right option for you, provided that you carefully assess the options and cost of refinancing.

If you are unsure whether refinancing is right for your current situation, refer to our refinancing checklist below. Alternatively, contact us at and we will show you how much you can potentially save by refinancing to a more suitable home loan.

Interest in advance

Paying interest in advance is the option to pay the interest that will accumulate on your loan over the next year before it is actually charged. This allows you to claim the costs against your tax a year earlier than you would normally be able to. Usually available on fixed rate loans, lenders may offer a discount on the interest rate if you do pay in advance. The loan term may range from one-to-five years, depending on your lender.

Paying interest in advance is only an option for those who are able to afford to pay the loan interest in a lump sum.