Easy Investment Property Loans For Sydney Investors

It’s fair to say Australians love property. In fact, millions of Aussies have built their wealth through property investments over the last few decades. Aside from the monthly recurring income from rent, the value of real estate in Sydney usually increases over time. So by the time you retire, it’s likely you will have accumulated considerable equity. Regardless if you are a first-time investor, or you already own multiple properties around NSW, it’s still wise to shop around for a better investment property loan.Shop Your Own Mortgage has a team of property investment loan specialists to help you explore current offers and deals in the market. Call us on 1300 256 081.

What is an Investment Property Loan?

An investment property loan provided by a bank, credit union or non-bank lender will provide you with the money you need to start or expand your real estate portfolio.

Technically, it is a home loan - but just not for the property that you use as your main residence. Property investors will let out the purchased property to a tenant and receive a regular income from the monthly rent.

Some investment property lenders have more stringent credit terms and approval requirements compared to ordinary home loans. But there are also many ‘investor-friendly’ lenders in the market who understand how the complexities of capital growth, negative gearing, and property depreciation can improve the financial position of landlords.

What are the usual investment property loan rates in Sydney?

While investment property loans generally tend to have higher interest rates, it is not always the case. There are still lenders in Sydney offering rates as low as 2.39% if you shop around. Meanwhile, the highest rates in Sydney can reach as high as 5%.

Beyond the interest rates, borrowers also need to consider other property investment loan terms such as fees, restructuring options, repayment period, etc.

How to apply for an investment property loan

Each lender has its own set of terms and processes to secure an investment property loan, but most lenders follow these steps:

  1. Initial inquiry and consultation - a loan specialist will help you navigate the process, ask you important questions and review your current circumstances and advice you on how to get pre-approval
  2. Submit application and documentary requirements - after the initial assessment, you need to fill out an application together with the requirements needed to process your application
  3. Pre-approval - the lender will notify you if you are pre-approved for an investment property loan, which includes the pre-approved amount with rates, fees, and other relevant details of your loan
  4. Shop for investment property - you can start looking around for properties that are within your budget
  5. Purchase the Property - you can buy the property that you want for your rental portfolio
  6. Start repayments - pay your monthly payments until you sell in future or choose to refinance later

As you can see, the process can be overwhelming. Many property investors choose to save time and effort by getting mortgage brokers like Shop Your Own Mortgage to do all the legwork.

Call us on 1300 256 081 or send an email hello@syomortgage.com.au