Buying an Investment Property
What you need to know about buying an investment property
Buying an investment property
From planning for your retirement, to building your wealth or getting onto the property ladder, there's many reasons why investing in property is a good idea. Whether you're looking to buy your first investment property or you've purchased one before, we've got a range of investment property loans to suit your needs.
Tips for investing in property
| Get professional advice | This will give you the financial confidence you need to avoid any costly mistakes. |
| Work out your income and expenses | Make sure you’ve considered how you can afford to cover your expenses and make your repayments if your investment property doesn't rent short term and long term. |
| Know where to buy | Look out for high growth areas and properties close to public transport, schools and local amenities. |
| Choose the right property | Unlike the house that you're living in, looking for a property with low maintenance and upkeep will help you save on ongoing maintenance fees. Also weigh up the costs of any repairs that need to be made to the property before you buy. |
| Choose the right investment property loan | Whether you intend to hold on to your investment property short term or long term, make sure the loan type you choose fits in with your investment loan strategy. |
Step 1: Determine how much you can borrow
As an investor, typically your financial situation will be a little more complex. It’s probably best you work with your bank and financial advisor to fully understand your borrowing power and the right investment property loans for you.
Understand other costs
As you may already know from buying other property, there are additional expenses that you’ll need to cover. Some of the main costs are:
| Stamp Duty | Use our Stamp Duty Calculator to work out how much stamp duty will be payable on the purchase of your property. |
| Lender's Mortgage Insurance | Required if you are borrowing more than 80% of the purchase price. |
| Legal fees | For completing conveyancing and title searches on your investment property. This cost varies depending on the Conveyancer and the property searches you require, but can be around $1,500 - $2,500. |
| Building and Pest Inspection | A report on the structure and condition of your property. This cost varies depending on the Building and Pest Inspector, but can be around $400 - $700. |
| Landlord Insurance | Have peace of mind about your biggest investment. See our Landlord Insurance options. |
| Property Valuation | An independent valuation of your property. Some of our home loan products offer a free residential valuation. Enquire with your lender about valuation costs. |
Step 3: Choosing your investment property loan
Choosing the right investment property loan will help you make the most of your investment. Our home loans have a range of useful features to add flexibility to your home loan, from making interest only repayments to having a low interest rate.
Variable or fixed interest
Choose between the flexibility of a variable rate or the certainty of fixed loan repayments, or combine both options.
Interest only repayments
A great way to reduce your repayments and ensure they can be claimed as a tax deduction.
Line of credit facility
Useful for having funds available when you need it to make maintenance repairs and other expenses that may come up.
Redraw facility
The ability to draw on your funds in case you need it.
Flexible repayments
Schedule weekly, fortnightly or monthly repayments in line with your rental income.
Popular home loans for property investors
Take the guesswork out of choosing your home loan with our most popular investment property loans.
Know what your repayments are for peace of mind
Fixed Rate Home Loan
A fixed rate home loan gives you certainty for up to 5 years without worrying about potential interest rate rises.
- Owner occupier and investor options available
- Great interest rates across our range of terms
- Principal and interest, or interest only repayments
Save with our lowest home loan interest rate
Economy Variable Home Loan
Getting a cheap home loan doesn't mean you have to compromise on its features.
- Owner Occupier and Investor options available
- Free redraw
- Unlimited additional repayments
Our most popular low rate loan, packed with features
Clear Path Variable Home Loan
If you're looking for a fully featured, cheap home loan with a low rate, our Clear Path Variable Rate Home Loan is for you!
- Owner Occupier and Investor options available
- Mortgage offset
- Flexible repayments
Step 4: Buying your investment property
Once you've found the perfect investment property and you've agreed on a price with the seller, it's time to apply for a home loan. Why not have a chat to one of our home loan experts today to start the process? Typically applying for an investment home loan will entail:
- Loan application - we’ll guide you on all the necessary information and documentation you need to complete your loan application
- Loan approval - this is where we call you with the news you’ve been eagerly waiting for and prepare your loan contract
- Loan settlement - the day you can really celebrate and we finalise the purchase of your investment property
Ready to get started?
We’re here to answer any questions you may have.
