Are you looking to purchase your next investment property and do not have 40% deposit? Then the options below are worth considering-
Use multi-bank strategy– Rather than putting all of your eggs in one basket- split your home loans and separate the owner-occupied property from the investment to maximize the use of available equity for any future purchases. Ask your mortgage broker about the dollar-for-dollar refinance option.
Purchase new build properties– As new build residential investment properties are exempt from LVR restrictions- some banks can lend you up to 90%. ASB and ANZ are currently offering ultra-low 1.79% p.a. and 1.68% p.a. interest rates on the construction loans. Also, the interest cost deductibility exemption on new builds makes it more attractive from the cash flow point of view.
Non-bank lenders– If you are looking to purchase an existing residential property with a development/sub-division potential- it’s worth considering non-bank lenders such as Select/Bluestone or Resimac, who will let you borrow up to 80% on the existing residential investment properties, given you meet their servicing criteria- which in most cases is similar or better than the mainstream banks. The fixed interest rates start from 2.79% p.a. and floating interest rate from 3.39% p.a. Select also has an exclusive arrangement with Loan Market, where they can lend up to 90% against the owner-occupied property and 80% on the investment property.
Need help finding the right loan? – Reviewing your home loan options can save you a lot of money. Whether you are purchasing your next investment property, upgrading your home, renovating, buying a car or refinancing to get the best interest rates- let us save you time and hassle by finding the right lender and products that suit your specific needs now and in future.
Keen to learn more? – Get in touch with our in-house Loan Market, Mortgage Advisor – Sanjeev Jangra today.