elk offer clear, no-nonsense advice on structuring and selecting investment loans that will work for you as you build wealth through property.

A variety of lenders offer investment property loans. However, the lender you choose to apply with should be based on your specific situation. Each investor has their own investment goals and risk profile. Accordingly, they may be better suited with a particular lender.

By gearing your property portfolio with the right loans you can maximise your borrowing capacity, extend your interest only periods and reduce the size of your deposits.

This means that you can buy more investment properties and achieve your investment goals faster!

Investment property loan decisions are often influenced by whether the borrower has any owner-occupied debt. Owner-occupied debt is usually paid off first to maximise the effectiveness of gearing, while the tax effective debt (investment debt) usually has the minimum repayments possible, often interest only repayments. If there isn’t any owner-occupied debt, then personal circumstance and choice dictates interest only, principal and interest or a combination of the two. Talking to your accountant or financial planner is particularly important when you are planning on making decisions about funding for investment purposes versus owner occupier or personal use.

Aside from some legal differences and the fact that purchasing an investment property should be treated as a “business case”, the financing process for buying an investment property is much the same as buying your own home.

Work out your budget

• Prepare a budget and make sure you have enough to cover all your costs, including searches and stamp duty.
• Once you’ve found the property you want, make sure your solicitor or conveyancer has read and agreed to the conditions of the Contract of Sale.

Apply for your home loan

• You can start the process right now. Simply complete our online application form or call one of our mortgage specialists to complete an application.
• Send in the completed application form with all the necessary documentation.

• We’ll contact you within two business days to confirm we’ve received everything and to clarify any details.
• *All applications for credit are subject to funder credit approval criteria.

Approval documentation

• If your application is approved, your dedicated Mortgage Specialist will contact you about the next steps.
• Accept our letter of offer
• Our funders will send you a letter of offer to sign and return.