Also known as a home equity loan, a line of credit home loan allows you to use the equity in your existing property to secure your investment loan. Rather than receiving a lump sum, you can access as much or as little of the loan as you need, meaning financial discipline is key. Canny borrowers can have their salary paid into their line of credit loan account, to offset the loan.
Whichever loan you choose, seek professional advice from a mortgage broker and shop around to compare competitive rates.
Investment loans have stricter eligibility restrictions, may require a larger deposit than other home loans, and often incur a slightly higher interest rate. You’ll also need to have funds to cover potential costs or loss of rental income if your property is untenanted for any length of time. The trade-off is that as a landlord you can claim associated expenses as tax deductions.
To discuss your home loan options, and to find an investment property loan that’s right for you, contact Aus Fin Loans today.