Are you feeling ready to get into the property market? Want to make an investment that could help set you up for life?
Well, it’s a smart idea. If you plan things properly – scoping out the right property and financing – you’ll enjoy an appreciation in value on those assets, while also benefiting from the profits of a rental income.
An investment like this also comes with confidence: since it’s not subject to the whims of the stock market, it can represent the sure bedrock of a diverse investment portfolio.
Starting off on the right foot
That being said, it’s important to know exactly what you’re in for. There are traps for the unwary investor.
At OzBroker, we have the experience and expertise to help you get into the investment game on a sure footing. We’ll do the hard work – comparing multiple loan types to determine the best financial product for your requirements. Our approach considers all factors: whether that’s negative gearing, offset accounts or capital gains tax.
That means you can be confident you’ll have the best rate for your needs – and there’s no danger of being overextended with a poor, uninformed investment which can put everything at risk.
How to qualify for a loan
Another reason to consult with OzBroker, is that the process for approval can be quite complicated.
The essential criteria are basically about demonstrating your financial credentials – as lenders consider investment loans to be relatively high risk compared to standard home loans.
You’ll need:
- A solid credit history – with an above-average credit score
- At least 10% of the property value in savings
- Stable employment
Which lender is best?
It really depends on your personal circumstances – as well as the specifics of the qualifying criteria. Which is, again, where we are happy to sort through all the details with you.
The criteria can vary between lenders according to factors such as:
- Added income such as overtime, allowances, bonuses dividends and sole trading earnings
- Rental income, where it’s standard to only take into account 80% – but some lenders will actually accept all of it.
- Negative gearing, which isn’t always taken into consideration.
- Assessment rate – adding up to 2% of the current rate is standard practice when lenders assess your borrowing capacity. However, it it can be waived if you are fixing your rate for more than 3 years.
How to increase borrowing capacity – and get that loan!
There are a few basic ways to ensure you get over the line – with an improved borrowing capacity – whether that means applying jointly with a spouse or reducing credit card limits.
These are all topics we’re happy to discuss with you. At OzBroker, we’re in the business of matching you to the right lender – and the best deal. Please feel free to contact us for a consultation with one of our experts.
