Investment loan here is features for property investment. When deciding to invest in property, you need to figure out types of the loans and how they assist you to archive the investment goals. Various types of the investment plans are designed to meet different circumstances of borrowers.
When taking this loan, there are 2 things you should know. 1st the the gearing, gearing is the term used to describe borrowing for investment purposes. Make sure there is a positive gearing (rental income of the property more than owning monthly amount) when taking the loan. 2nd, the taxation, when negative gearing occur the shortfall amount can be use at tax deduction.
Below are some loan types provided for investment :-
1) Interest only investment home loan - the monthly repayment are making for interest only, never touch to principal amount. The loan term is normally 5 years, due to some special case lender will prolong the loan term to 10 years. As interest is the only part of the repayment that can be claimed as a tax deduction.
2) Flexible borrowing assessment - the lenders will estimate your loan limit in few ways, including your salary, passive income and even the monthly rental of the property.
3) Investment home loan - Amount lending up to 95% of the loan, some lender even lending 100% - 110% of the loan.
4) Combination loan - this loan allow borrower to split their home loan into partly fixed or variable portions.
5) All in one loan - Borrower dump all their expenses into an account and only withdrawn their living costs and basic expenses. But this loan required high level discipline. Otherwise borrower may spending may then they expect.
6) Low-doc loan - this is a great solution for those can afford the loan repayments but are unable to disclose full income details. Suitable for self employed applicants or where they have an irregular income stream.
For more home mortgage information, please check out
Home Loan Guide instead of Investment Loan
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