Are you considering delving into the world of residential investment? What if we told you that investor loans are up 18.5% on this time last year (ABS) and that residential investor loans are currently a huge proportion of our business? But regardless of whether you're a seasoned investor or just starting out, understanding the intricacies of residential investment loans is crucial for making informed decisions and maximising your returns.
In this month’s blog, we'll explore the ins and outs of residential investment loans, shedding light on important features, scenarios, and benefits that AAA Mortgages has access to through our extensive range of bank and non-bank lenders in order to help you navigate the property market with confidence.
No statements needed to show genuine savings below 90% LVR:
Unlike traditional home loans, residential investment loans below 90% LVR (Loan to Value Ratio) often do not require statements to demonstrate genuine savings. This flexibility can streamline the application process and make financing more accessible for investors.
Up to 90% LVR Unlimited Cash Out:
Yes, you read that right! With residential investment loans, you can access up to 90% LVR for unlimited cash-out options. This feature provides investors with the flexibility to leverage their property's equity for various purposes, such as property renovations, debt consolidation, or further investment opportunities.
Common Debt Reducer:
If you share a property with someone else, lenders will only consider your portion of the loan for servicing. This concept, known as Common Debt Reducer, can significantly assist in servicing the loan and enhance your borrowing capacity.
Negative Gearing:
Unlike owner-occupied loans, negative gearing on investment properties is not capped. Instead, it is calculated based on the interest rate of the loan, allowing investors to maximise tax benefits and optimise their investment strategy.
Essential Service Workers Income and Benefits:
Residential investment loans offer favourable terms for essential service workers, allowing them to take 100% of their income into account when assessing borrowing capacity. This feature recognizes the valuable contributions of essential service workers and provides them with greater financial flexibility.
Land and Construction Loans:
Looking to build your investment portfolio? Residential investment loans also cover land and construction loans, with options available for up to 90% LVR and a 30-year loan term. Additionally, there's no need to commence construction within 12 months, providing investors with flexibility and peace of mind.
Line of Credit:
Well here’s some exciting news! Some of our residential investment loan products offer a line of credit for 5 or 10 years. That's right – the LINE OF CREDIT IS BACK! This feature allows investors to access funds as needed, providing greater financial flexibility and liquidity for their investment endeavours.
So if you're eyeing a residential property, land development, or construction project, residential investment loans offer a myriad of benefits and opportunities to help you achieve your investment goals.
With over 35 years of experience in the industry, the AAA Mortgages team combines expertise with personalised service to guide you through every step of the borrowing process, ensuring that you make informed decisions tailored to your financial goals. As a AAA client, you'll benefit from our extensive network of lenders, allowing us to explore a wide range of products and secure competitive rates. Moreover, our commitment to transparency, integrity, and customer satisfaction sets us apart, providing you with peace of mind and confidence in your investment journey.
Whether you're a first-time investor or a seasoned property owner, AAA Mortgages is here to help you unlock the potential of residential investment with unmatched service and support. Contact us today to explore your options and embark on your investment journey with confidence.