Investing

Investment Property Loans to Grow Your Wealth

We at JFS Financial Strategists are dedicated to helping you grow your wealth. Whether it’s your first time investing or you are an expert looking to optimise your portfolio, we have the skillset and knowledge to execute a strategy that works for you.

Our specialists are also trusted to negotiate investment property loans and keep your portfolio in its best shape to streamline your cash flow and maximize your ROI.

Helping You Expand Your Investment Property Portfolio

We’ve listed the most common FAQs for investment property loans. Read on to discover how we can help you secure investment property finance without the hassle and hidden costs.

How Can I Tell if Property Investing Works for Me?

Before venturing into property investing, make sure you have:

• Extra cash flow after deducting living expenses and outstanding debts
• Saved enough equity or deposit in a property.

Besides, remember that investing incurs varying risks. So we recommend having an investor’s mindset and trying to mitigate the risks of investing by looking into what you will earn in an investment property.

That means going out of your way to make several enquiries just to ensure what you’re venturing into is right for you.

Why Do I Need a Mortgage Broker for Property Investing?

Having a time-tested and proven mortgage broker can help you:

• Thoroughly assess and determine your borrowing capacity.
• Understanding what documents you need to prepare when buying a property
• Make sure you have enough equity and set an appropriate property budget.
• Develop a long-term and sustainable financing strategy
• Establish a sustainable and reliable financing strategy
• Take you through different partner specialists (solicitors, tax and depreciation experts, mortgage brokers, and buyer agents)

Property investors should also walk away with an improved loan portfolio with our help at JFS Financial Strategists.

How Can You Optimise Loan Portfolios of Experienced Investors?

We can help existing property investors optimise their property loan portfolio by:

• Negotiating better interest rates to save significant money at the end of the term
• Fixing irregularities and optimising investment property loans to get a period certain and protection against increasing rates
• Saving equity releases to prepare for future investments
• Adjusting loan terms and converting a portion of investment loans to Interest Only to maximise your cash flow
• Finding a bank/lender with the most loan features to give you convenience
• Consolidating multiple loans into one lender

Every property investor has unique needs, so contact us to discover how we can optimise your investment property loan portfolio.

What LVR is Recommended for Investment Property Loans?

Like any other loan, an 80% Loan to Value ratio (LVR) is safest for first-time investors purchasing in a relatively slow property market.

Borrowing more than 80% LVR will increase the risk to your bank or lender. Meaning they will incur Lenders’ Mortgage Insurance (LMI). We only advise going for more than 80% LVR if the property is affordable and there is an impending rise in the market.

Besides, we can negotiate for more than 80% LVR with no LMI as long as you’re eligible and can prove to your lender that you can pay off the loan regularly.

What if I Can’t Provide the Minimum Loan Deposit?

Typically, you only need about 5-10% of the property’s value as a minimum deposit to take it off the listings. But if you don’t have that amount, you can consider using loan securities or paying for LMI if you are eligible.

You may also consider opting for Family Guarantee if your parents have significant equity in their property. That property will be your loan security to purchase the investment property at a lower deposit.

Is Pre-Approval for a Loan Necessary When Buying Investment Property?

We strongly recommend seeking pre-approval for your loan before purchasing your first investment property. Doing so strengthens your buying power to negotiate better prices and acknowledge your price ceiling.

Besides, many buyers’ agents will only look for listed investment properties after you get pre-approved for your loan.

For existing homeowners looking to buy an investment property, a common method used widely to acquire the initial deposit is utilising equity from an existing home.

By refinancing your existing home loan, you can release the equity in your home that has built up over the years which can ultimately help you save on LMI. 

Get in touch with us today to discover whether you qualify for an investment property loan and how you can strengthen your borrowing power for better rates and loan terms.