The beauty about borrowing to invest is that it enables you to participate in investments that would otherwise be closed to you by virtue of their sheer cost, whether its property, shares, investment portfolios etc.
There is nothing intrinsically wrong with borrowing to invest, or “gearing”, and as far as property investment is concerned, it’s the time- honoured method. It’s simply important that you do it properly by purchasing the right property at the right price, and the right finance package.
Not many people buy an investment property with their own funds.
interest only loans
principal and interest loans
variable rate loans
fixed rate loans
combination of fixed and variable rate loans
equity credit loans (including redraw loans and revolving lines of credit.
All of these loans can range in duration from 10-30 years.
flexibility- about exiting, early pay-out, switching to a different mortgage or portability
low or no application fees
low or no ongoing fees
low or no exit/early pay-out penalty fees
low or no switching fees (from variable rate to fixed rate, or vice versa)
ability to make additional repayments
interest offset facility
Despite the large number of home loan providers and variability in home loan rates, mortgages are quite basic products with a fairly limited number of variations.
These are the options you can chose from:
Selecting a lender can be a daunting task and this is where a Mortgage Broker can simplify this process for you.
Look for the following features in your mortgage:
Generally, the more features a mortgage has, the more expensive it’s likely to be. Don’t pay for a “bells and whistles” mortgage with a vast range of features and a higher rate unless you are going to use them.
Westlink Finance has access to a substantial range of lenders, as do most mortgage brokers, but also a range of non-bank lenders that are able to offer products that the banks do not have. An example of this is the Lo-Doc mortgage which is a straight asset lend, and does not rely upon the provision of financial information.
Orange, Bathurst, Blayney, Forbes, Parkes, Dubbo, Wellington, Dunedoo, Gulgong, Mudgee, Cowra, Young - Central Tablelands, Central West NSW and their surrounding villages and towns,
Katoomba, Blackheath, Mount Victoria, Hartley, Lithgow, Portland, Blue Mountains NSW and their surrounding villages and towns.
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Central West NSW, Central Tablelands NSW, South West Slopes NSW, the Blue Mountains NSW