Already have a loan with us and thinking of investing in another property?

If you have an existing owner occupied home loan with loans.com.au, and you're thinking of purchasing an investment property, you may be eligible for a discounted investment home loan up for 80% LVR. Similarly, if you’re settling an owner occupied home loan and an investment home loan at the same time, you could also be eligible for our investor package. Speak to one of our home lending specialists to learn more. 

Equity is the value of your home, less any money owed on it. For example, if your house is valued at $600,000 and the current debt is $250,000, the equity in the home would be $350,000.You can leverage the equity in your home to cover the deposit on a new property, using your existing property as collateral. It's great to make the first step to enter the property market because once you're in, using equity is generally much easier than saving for another deposit. Find out more about using equity to buy another home.

If you purchase an investment property, you are likely to come across the term "gearing". This means borrowing for the purpose of investing.If you borrow to make an investment it can be negatively geared - where interest repayments exceed net income, or positively geared where net income exceeds repayments.Negative gearing means that the cost of owning an investment property outweighs the rental income it generates. As an example, assuming your rental property earns $20,000 in one year and the expenses of owning the property (loan repayments, body corporate fees, maintenance, etc.) are $25,000. You will have a loss of $5,000 which you can claim as a tax deduction.One benefit of this is the ability to claim tax deductions and reduce your taxable income. Additionally, a negatively geared property investment may appreciate in value over time.It's important to note the risk involved in negative gearing because you are losing money, so you'll need to be aware of this so you can budget and prepare for the losses.

Owner-occupier rates in a package are typically lower than investment rates. Please speak with your home lending specialist for more details.

For an extra 0.10%^ to the loan, you can add a 100% offset sub-account with online, ATM, EFTPOS & Visa debit card access to your money, plus unlimited free redraws. For more information on our home loan with an offset sub-account: https://www.loans.com.au/home-loans/offset-account/

An offset sub-account is linked to your home loan and helps reduce the interest you pay. Instead of earning interest like a regular savings account, the balance in your offset reduces the portion of your loan that accrues interest. This can help you pay off your loan faster and save on interest costs.

Key things to know:

• It's a sub-account of your loan, not a separate deposit account.
• Funds in the offset sub-account are not covered by the government deposit guarantee.
• The offset cannot exceed your home loan balance.

If you have any questions, our friendly team is here to help!