Investment home loans are just as essential as find the right property.
Australians are big fan of investing in residential property where it is usually bought with the goal of creating wealth. An investment home loan is for people seeking to purchase a property with the purpose of renting in out and make a killing profit through a rise in the property value. This loan often has higher interest rates and may have stern eligibility requirements. Investment loans can be used to invest in property, managed funds, shares or business.
To qualify for the investment loan, Mortgage Central brokers will look into the following criteria
- A soundful credit history
- Above average credit score
- Steady employment
- Must possess 5%-10% in genuine savings*
- If the investor is borrowing more than 90%, then lenders prefer to verify equity in other properties, in case, if it is not your first investment property.
*Genuine savings is that the bank will verify whether you have planned and saved deposit which will be considered as proof for them to declare you as soundful borrower.
Most of the lender don’t require genuine savings
- If you can avail 90%-95% of the property value.
- Interest rates will be same as those for regular loan.
- Preferably, you must possess good asset value, healthy income & stable employment.