Question 1

Are interest rates the same for loans for investment properties and owner-occupier homes?

Accepted Answer

Interest rates for loans for investment properties are typically higher than home loans for owner-occupiers.

Question 2

Will my investment property loan payments be tax deductible?

Accepted Answer

Investing in property may provide tax deductions for investors. For specific advice and direction in regard to the deductibility of loan payments, investors should consult with a tax specialist or their accountant.

Question 3

What is rental yield?

Accepted Answer

Rental yield is the difference between rental income on an investment property and the costs associated with owning the property. Rental yield is represented as a percentage.

Question 4

What deposit do I need for an investment property loan?

Accepted Answer

Investors typically require a 20% deposit on the property for a loan. Lesser deposits may be approved but Lender Mortgage Insurance would apply.

Question 5

Do loans for investment properties have fixed or variable interest rates?

Accepted Answer

Both variable and fixed interest rate loans are available to purchase investment properties.

Question 6

Are loans the same for residential and commercial investment properties?

Accepted Answer

Loans for investments in commercial and residential properties may vary due to the different usage of the properties, the inclusions in commercial property acquisitions, and with lenders and lending products.

Question 7

Can I use equity in my home on an investment property loan?

Accepted Answer

Investors that have equity in their home may utilise this equity as a deposit when applying for a loan to purchase an investment property.

Question 8

Will the location of a property impact an investment home loan?

Accepted Answer

A property's location may have an impact on the loan where the lender includes expected rental yield when assessing the loan. The state or territory of the property will affect the transfer duty costs. These costs are not included in a loan but are required to be paid by the buyer.

Question 9

Are interest-only loans available to investors?

Accepted Answer

Subject to individual lender approval, investors may be approved for interest-only loans. Interest-only loans are subject to specific loan terms.

Question 10

What is the difference between principal and interest and interest-only loans?

Accepted Answer

Repayments on interest-only loans cover the interest accruing on the loan only. Payments do not reduce the principal. Payments on principal and interest loans include both principal and interest. As the principal is reduced over the term, owners build up equity in the property.

What should I consider with investment property finance? Ask Yes!

What should I consider with investment property finance? Ask Yes!

How to do I start with investment property finance?

What are the most effective loans for property investment?

Planning to invest? Get Competitive Property Investor Loan Rates.

Request an Investment Property Finance Quote for Your Strategy!

Invest Smarter with Yes.