Investment Home Loans

Investment property loans are also a residential home loan.  The only difference is that the purpose of the loan is for the purchase of an investment property.  In this case, the security for the loan can be either the investment property or an owner occupied home.  The purpose of the funds being borrowed often determines the lending product offered by the lender rather than the security being offered.  Rental income, either actual or proposed, can be included in the borrowers income when assessing the borrowers capacity to service the loan but it is generally shaded to 80% of actual.  Again, this differs lender to lender.  There are some lenders that will determine the loan product by security.  If a borrower has equity in their owner occupied home this may be able to be accessed to reduce their investment debt costs.  Investment lending is a current focus of APRA who have stipulated maximum limits of investment debt on banks so, depending on where the bank’s current levels of investment debt is at any time, will determine their policy to encourage or discourage investment applications.