property investment

loan

There are a number of ways to structure a property investment loan, including

CASH FUNDS FOR DEPOSIT

This is where you provide funds for your deposit without using equity in a property you already own.

AN INVESTMENT LOAN USING THE EQUITY IN YOUR HOME

If you have equity in your current home, you may be able to use that as the deposit for your next investment property. Investment loans can be set up differently to a standard home loan, so it’s important you understand the possible advantages and disadvantages before applying.

COMMERCIAL  FINANCE

Commercial loans, although very different from a standard investment loan, may also be an option available to you. Speak to your finance broker about whether this type of loan is appropriate.

Speak with your finance broker and our team about selecting a loan that will best suit your needs.

One package

two contracts

When you purchase a house and land package, there are 2 individual contracts –
A land contract and a construction contract. This means that the financing typically involves two separate loans.

A regular mortgage is suitable to purchase the land, but for the house we recommend taking out a construction loan. This type of loan will allow you to borrow in stages as the construction progresses rather than paying interest on the entire amount from day one.

A standard builder’s payment schedule will typically involve:

  • 5% deposit
  • 10% slab completion (property foundation)
  • 20% frame completion
  • 35% lock-up completion (windows, exterior walls and doors)
  • 20% fix completion (plumbing and electrical fixtures and fittings, as well as design features)
  • 10% final