An investment loan is a type of loan you can take out for the primary purpose of of investing in a property. This functions like a home loan, however, interest payments on investment loans are tax deductible. The tax deductions you can potentially claim on a property investment include interest on the investment loan, council rates, and home insurance.
Everyone wants to secure the best investment home loan at a low rate. But the right investment loan for you will depend on your financial circumstances including your borrowing power, the size of deposit you can afford, the kind of features you need, and how long you think it will take you to repay the loan.
Securing an investment home loan at a low rate shouldn’t be the only thing you look for. You also need to consider ongoing and upfront fees. Associated fees when added up can cost thousands of dollars, which is why you should look at the interest rates and fees together when comparing home loans. One way to get a quick understanding is by checking out the comparison rate instead of the advertised rate.
Another thing you should consider other than low interest rates is the home loan features. Features can add flexibility to your investment loan. They include the ability to make additional repayments and having an offset account. Here are some of the features you should look out for:
Consider the type of investment loan you’ll sign up for when looking for the best investment home loan. You can also use our home loan calculator to see an estimate of what your repayments will likely be, so you can calculate how much your cash flow will be.
Tags: buying property | refinance your home loan