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What does an investment loan comparison rate mean?
Investment loans also have comparison rates, and they’re used the same way as other home loan comparison rates: as a tool to more easily compare options from lender to lender. Tiimely Own home comparison rates are calculated for a $150,000 loan over 25 years. They factor in our fees associated with applying for the loan; our ongoing fees and our fees associated with leaving the loan.
Can I use the equity in my current home as a deposit?
Yes, equity is a powerful tool that can set you on the road to building a profitable investment property portfolio.
You can use the equity in your home as an investment property deposit and if you have enough equity built up, you can borrow 80% of the property’s value without having to use your own cash.
How equity is calculated
Your accessible equity is the difference between your home’s current value and how much you still owe on your home loan.
If you’ve lived in your home for five years or more, you’ve probably accumulated quite a bit of accessible equity.
But lenders will only lend up to 80% of your home’s current value minus your current mortgage. This is known as your useable equity, which is quite a bit less than your accessible equity.
But it can still be a significant amount for an investment property deposit or any other use you may have for it, such as renovating your home, investing in shares or managed funds or improving your lifestyle with a holiday or new car.
Tips when buying an investment property
- All investments carry some level of risk, so to reduce your exposure when accessing your equity;
- You could keep some of your equity for emergencies, instead of using it all to invest in property.
- Consider repaying your home loan as quickly as you can.
- Think about learning more about property investing so you can make educated choices.
- It's always important to get professional financial advice to fully understand your options.
How much can you borrow for an investment property?
This will depend on many different factors, like your income and your current living expenses. To get an estimate, check out our borrowing calculator and run the numbers.
How do I apply for an investment home loan?
To apply for a Tiimely Own home loan, have a look at our eligibility criteria to see if we could be a good fit. Then, take a look at our home loan options to see if any of our investor home loans suit you. When you’re ready, apply online. Our digital application should take around 15 minutes to submit.
Can I get an owner occupied loan for my investment property?
You can’t get an owner-occupied loan for an investment property. You’ll need to specify in your loan application if you’re planning to live in the property you’re taking a loan out against. If you’re not going to be living in the property, you’ll need to get an investment home loan. Likewise, if you plan to move into your investment property you can turn your investment home loan into an owner-occupied home loan.