start an investment portfolio with sunshine coast mortgages
Investment Property Loans Sunshine Coast
The team at Sunshine Coast Mortgages are local investment loan brokers who can secure the best terms and rates for your investment property loan. With access to more than 25 lenders, they can assist new investors in starting their property portfolio.
Find The Best Interest Rates
We have access to more than 25 lenders and will help you choose the lender that best suits your investment home loan needs
How to get your first investment loan
Investing in property on the Sunshine Coast or other Australian regions is a great way to build wealth and secure your financial future. With the right property and financing, you can earn a profitable return from the rental income whilst also benefiting from the appreciation of property value. Unlike the stock market, property values tend to be more stable, providing you with greater stability and diversification in your investment portfolio.
However, buying your first investment property can be daunting, especially if you’re inexperienced. The good news is that you don’t have to do it alone. Shawn McAnnalley from Sunshine Coast Mortgages and his team of experienced brokers specialise in investment finance. Our mortgage brokers can help you compare loans and financing structures across multiple lenders, ensuring that you get the best rate and don’t overextend yourself.
It’s crucial to start your property investment journey on the right foot. By organising your property portfolio with the right loan, you can maximise your borrowing capacity and make your hard-earned money work harder for you. When we help our clients invest in property, we cover all the bases, including negative gearing, capital gains tax, depreciation, offset accounts, and other factors. We make sure you choose the right loan for your circumstances and achieve your investment goals.
Types of Property Investment Loans
Investment property loans offer options similar to home loans, including variable and fixed-rate loans, or a combination known as a split loan. You can choose to pay interest only or both interest and principal each month.
The structure of your loan can vary based on your risk strategy, repayment and tax objectives, as well as your cash flow strategy. Things to consider when applying for an investment property loan:
Principal and Interest Loans
Interest Only Loans
Variable rate home loans
Fixed rate home loan
Split rate home loan
Loan to value ratio (LVR)
Lenders Mortgage Insurance (LMI)
Refinancing Investment Loans
Finance & Mortgage Brokers You Can Trust
Shawn McAnnalley is a well-known financial and mortgage broker on the Sunshine Coast. As a qualified and licenced broker (CRN 527040), Shawn’s speciality loan finance areas include:
- Finding the best home loan rates
- First home buyer home loans
- Self employed home loans
- Finding the best investment home loan rates
- Securing competitive refinance interest rates
With access to a vast network of lenders throughout Australia, Shawn has the experience and ability to find the loan type that suites your needs at a competitive rate.
I offer a complimentary mobile consultation at your home, workplace or local café.
Shawn Mcannalley | Financial Specialist
Frequently Asked Questions for Property Investors
Negative gearing is a common strategy used by Australian property investors to offset their rental income against their expenses to reduce their taxable income. These may include mortgage interest, property management fees, and repairs. Talk to a qualified accountant for negative gearing-related questions.
The amount of deposit you require to buy an investment property on the Sunshine Coast or in Australia depends on various factors, including the lender you choose, the type of loan you opt for, and the property’s purchase price. Generally, most lenders require a minimum deposit of 5-10% of the property’s value.
Costs associated with buying an investment property include stamp duty, conveyancing and legal fees, building and pest inspection fees, loan establishment fees, and ongoing expenses such as property management fees, insurance, and repairs. Speak to your accountant to see how you may be able to offset some of these costs with Negative Gearing.
The requirements for investment loan approval can become complex, particularly when factoring in negative gearing advantages or other considerations to demonstrate your ability to repay the loan. Since investment loans are viewed as riskier by banks compared to regular home loans, meeting stringent financial standards is necessary to be eligible.
As an idea, the basic lending criteria includes:
- 5-10% of the investment property value in savings
- A good credit history
- Stable employment
Investment property loans are offered by a range of lenders including traditional banks and some other lenders we don’t commonly know about. What’s important to know is that each lender has their own legibility criteria when it comes to offering a loan. Therefore, it’s difficult to provide a suggestion without knowing your specific situation. The best way to secure an investment property loan is to talk to an independent broker so they can learn about your needs and goals and find you the right loan.
Here are a few ways you might be able to increase your borrowing capacity to buy your investment property:
- Opt for a lender that offers lenient borrowing requirements for investors.
- Apply for loans jointly with your spouse to leverage your combined household income.
- Invest in properties that generate positive cash flow.
- Decrease your credit card limits.
- Pay down any loans where possible.
Banks and other lenders utilise varying standards to evaluate your investment loan eligibility. Your borrowing capacity might fluctuate significantly, depending on the lender you select.
Here are some areas where lending criteria can diverge:
- Rental income – some lenders consider up to 100% of your rental income, whereas most banks only consider 80%.
- Other income – lenders differ in how they handle additional income sources, such as overtime pay, bonuses, commission, allowances, dividends, trust distributions, and self-employed income.
- Assessment rate – while most banks add up to 2% of the current rate when calculating your borrowing capacity, certain lenders may waive this charge if you fix your rate for more than three years.
- Negative gearing – not all lenders account for negative gearing benefits.
Need Help With The Numbers?
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