Mind the interest rate gap Over the past twelve months or so, a significant interest rate gap has opened up between different types of loans. This has been driven by regulatory changes to reduce investment and interest only loans. Banks and lenders responded by increasing rates on investment loans and interest only loans. Increases have been […]
Borrowing capacity challenges
Borrowing capacities have decreased Do you have an existing home and/or investment loan and are considering buying further property? You will find your borrowing capacity has decreased. The effect is amplified the greater your existing lending and if you have a high proportion of interest only loans. Why is this happening? Banks and lenders have been […]
Investment interest rates dropping
Investment loans are getting cheaper(again). Back in late 2014 APRA issued a warning to banks to curb the rate of growth of their investment lending to 10%. This sparked a wide range of responses from banks and lenders, depending how close they were to the 10% cap. The almost universal outcome was an increase in interest […]
Interest In Advance
Interest in Advance is a common strategy used by property investors Interest in Advance loan are a tactic available to investors with investment property loans. Unlike standard loans where repayments are made on a monthly or fortnightly basis, Interest in Advance loans are paid in a single payment in June each year for the the following twelve […]
Investment property loan
Three ways to structure your investment property loan Thinking of purchasing an investment property? You may need an investment property loan. Here are three ways of structuring your loan; Cash Deposit- Most commonly applies if you don’t have equity in an existing property. Your only option is to pay cash for the deposit and purchase costs. In today’s […]