Understand the position around the purchase
Consider borrowing capacity, existing commitments and available funds or equity.
Investment property pathway
Investment property finance
starts with your wider position.
Review borrowing capacity, available deposit or equity, loan structure and future plans with a Sydney-based mortgage broker supporting property investors across Australia.
InvestmentPosition✦
The wider position
Three coordinates.
One considered decision.
Capacity
Understand what may be possible alongside current commitments.
Structure
Consider how the lending and ownership position may fit together.
Strategy
Keep the finance connected to the purpose and preferred timeframe.
Before financing an investment property
What belongs in the
wider lending picture?
An investment loan should be considered alongside existing commitments, expected property costs and the purpose of the purchase. The finance decision is separate from choosing whether a particular property is a suitable investment.
Borrowing capacity
Lenders may assess income, living expenses, existing debts, credit limits and proposed repayments. Expected rent may be considered, but lenders commonly apply their own treatment rather than accepting every dollar of rent.
Deposit, equity and buffers
Available savings or usable equity can influence the purchase range and loan-to-value ratio. Allow for acquisition costs, possible vacancies, maintenance and unexpected expenses instead of directing every available dollar to the purchase.
Loan structure and features
Compare principal-and-interest and interest-only repayments, fixed or variable portions, offset access and flexibility. The suitable structure depends on cash flow, objectives, lender requirements and the wider financial position.
Ownership and professional advice
Ownership structure can have legal, tax, estate-planning and lending implications. Mortgage guidance should be coordinated with independent tax, legal and financial advice before committing to a structure.
Explore the home-loan calculators, read the Falcon lending guides, or discuss an investment lending position.
A practical pathway
From broad intention
to a clearer position.
Position
Clarify the goal, funds, commitments and purchase range.
Explore
Consider suitable lending pathways and implications.
Proceed
Move toward the property decision with a practical next step.
Investment property loan questions
Clarify the finance
before committing.
These general answers explain common lending considerations. They are not property investment, tax, legal or financial advice.
How much deposit or equity is needed for an investment property?
The amount depends on the purchase price, lender policy, property type, loan-to-value ratio and the borrower’s complete position. Purchase costs and a practical cash buffer should also be considered rather than treating all available funds as the deposit.
Can I use equity in my home to buy an investment property?
Potentially. Usable equity depends on the property value, existing loan balance, lender limits and serviceability. Accessing equity increases debt secured against property, so the purpose, loan separation, repayments and risks should be reviewed carefully.
How do lenders treat expected rental income?
Lenders may include part of verified or expected rental income when assessing borrowing capacity, but their accepted percentage and evidence requirements can differ. They will also assess personal income, expenses, existing commitments and proposed loan repayments.
Should an investment loan be interest-only or principal and interest?
Neither option is automatically suitable for every investor. Interest-only repayments may be lower for a period but do not reduce principal and can increase total interest. Principal-and-interest repayments reduce the balance but require higher repayments. Compare costs, cash flow, loan terms and professional tax advice.
This information is general and does not consider your objectives, financial situation or needs. Lending criteria, fees, rates and product features can change. Seek independent tax, legal and financial advice where appropriate.
Direct access
Make the property decision
from a clearer position.
Speak directly with Prasanth about the purpose, the position and what may be worth exploring next.