Investment property loans Australian investors can build a portfolio on

Interest-only repayments can improve cash flow for a set period, which some investors use while they pay down non-deductible home loan debt. However, the balance does not reduce, investment interest-only rates are often higher, and repayments rise when the period ends. Principal and interest builds equity from day one. The better choice depends on your cash flow, plans and tax position, so we suggest discussing it with your accountant too.

Yes. Many investors use equity in their home to cover the deposit and costs of an investment property, often through a separate loan split so the investment borrowing is clearly identifiable. The lender will check your total borrowing capacity, including the new rent. Keeping the structure clean can help with record keeping and future flexibility. We work out how much equity is available and the neatest way to access it.

A property is negatively geared when its deductible costs, such as loan interest, management fees and maintenance, are higher than the rental income it earns. The loss may be offset against your other income for tax purposes, depending on your circumstances and current tax law. Negative gearing still means the property costs you money each year, so it relies on long-term growth. Your accountant is the right person to confirm how it applies to you.

Cross-collateralisation means using more than one property as security for a loan or group of loans with the same lender. It is not always bad, but it can reduce flexibility, because selling or refinancing one property may require the lender to revalue and reassess the others. Many investors prefer standalone loans secured by individual properties. We review your current setup and explain whether restructuring would be worthwhile.

A self-managed super fund can borrow to buy property through a limited recourse borrowing arrangement, but strict rules apply to the property, the loan structure and who can live in or use it. Fewer lenders offer these loans and the costs can be higher. Before doing anything, you should get advice from a licensed financial adviser and an SMSF specialist accountant. Once that is in place, we can help source suitable finance.

There is no fixed number. It depends on your income, living expenses, existing debts, rental income and how each lender assesses them. Lenders apply different buffers and shade rental income by different amounts, so one lender may approve a loan another would decline. Choosing the order in which you use lenders can also affect future borrowing. We plan your lender choices with the whole portfolio in mind, not just this purchase.