Investment Backed Mortgages (IBM) has recently created an assembly of new mortgage products designed to maximise investors' cash-flow freedom during the first five years of their venture.
The company has said their drive for the new products has stemmed from their understanding of Australian investors' concerns for an extensive stream of cash during the beginning of their mortgage.
Derham Stewart, national sales and marketing executive, IBM, says the new Platinum Manager 85 (LVR up to 85%) is an effective way for investors to minimise their immediate and future outgoings by capitalising a portion of their set-up fees and interest within their mortgage.
"Our goal with our Platinum Manager products is quite simple - minimise a property investor's outgoings, and you'll maximise their cash flow," says Stewart.
The Platinum Manager 85 has an LVR of up to 85% for both Lo Doc and Full Doc borrowers, and requires no mortgage insurance.
"Even with a minimum deposit, by capitalising a portion of your interest payments, your out-of-pocket interest rate starts from 5.6% the first year, and 6.6% the second, which in most rental markets can make your investment property cash-flow positive from day one," explains Stewart.
It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan