Investment property loans for professionals

Who this suits

Professionals buying their first investment property, often while still paying off a home. Growing portfolios where equity in existing properties funds the next deposit. Anyone whose bank has said no based on a calculator rather than a real assessment of their position.

How the process works

We map your current position first: existing loans, available equity, income and expenses. Then we model the purchase, including how the lender will shade the rental income and how the new debt affects your future borrowing power.

Structure decisions come before lender selection. Interest only or principal and interest. Which property secures which loan. Whether to use equity or cash for the deposit. These choices affect tax, flexibility and your next purchase, so we work through them before anything is lodged.

What lenders look for

Lenders shade rental income, commonly to 80 percent, and assess your loan at a buffer rate above the actual rate. Existing debts are counted at their limits or at buffered repayments, which is why unused credit card limits matter.

Policy differences are significant. Some lenders are generous with rental income and strict on living expenses. Others are the reverse. Matching your position to the right policy is where borrowing power is found.

What you will typically need

• Two recent payslips, or contracts and invoices for contractors
• Statements for all existing loans, cards and leases
• Rates notices for properties you already own
• A rental appraisal or lease for the investment property
• Bank statements showing savings and everyday accounts
• Tax returns and financials if you are self employed or a partner

Common questions

How much can I borrow for an investment property?

It depends on your income, existing debts and how the lender shades rental income. The range between lenders is wide, sometimes hundreds of thousands of dollars on the same position. A comparison is the only honest answer.

Should I go interest only?

It depends on your strategy and tax position. Interest only keeps repayments lower and can suit investors, but you build no equity through repayments. We model both so you can decide with real numbers.

Can I use equity in my home as the deposit?

Yes, if you have enough usable equity and the serviceability works. We calculate your usable equity first, because the bank's number and the usable number are rarely the same.

Does an investment loan affect my home loan?

It can, because the debts are assessed together. Structuring them correctly from the start, and avoiding cross securitisation where possible, keeps your options open.

What deposit do I need for an investment property?

Commonly 10 to 20 percent plus costs. LMI waivers for professionals generally apply to owner occupied purchases, so investment purchases usually need the full deposit or usable equity.