Investment loan options
Loans for property investment do not vary too much from regular home loans. As with standard home loans you can choose between:
- Principle and interest
- Variable interest rate
- Fixed rate
- Split rate
Visit our Home Loan Types page to find out more on these.
However there are two types of loans that prove to be more popular to investors than others. These are:
- Interest only loans
- Line of credit loans
Interest only loan
Investors choose this type of loan as the monthly repayments are less and there is a tax deduction available for interest payments (not principal). Interest only loans are typically set for five years, after which the loan reverts to principal and interest.
Line of credit loan
Otherwise known as an equity loan, this loan type allows for investors to tap into equity they may have in an existing property they own, and use it as a deposit towards an investment property. It allows you to draw from a predetermined amount at any time to pay for expenses.
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