Property investors are known to have extremely different traits and needs than your regular first homebuyers or refinancing owner-occupiers. Much of the time, investors view properties like shareholders view businesses; they want to pick up the ones that are going to make them money, pay dividends and cost a minimum to hold, without reducing their borrowing power and closing the door for future investments.
A typical investor might be someone who has at least partially paid off the mortgage on their own home and is now in a position to begin property investing, with enough equity to cover a chunk of their deposit.
The overall winner in this category is State Custodians. This lender offers a number of products that are suitable for investors, perhaps none more so than the Breathe Easy Offset Loan, which allows investors a 95% limit on LVR, a fixed rate option, unlimited additional repayments and free redraws, no ongoing account keeping fees, 100% offset and salary crediting, interest-only repayments for up to 10 years, up to four free loan splits, and a loyalty bonus rate reduction of 0.25% after five years.
“Property investors are looking to get ahead financially and require their loan to be structured in a way that will maximise their future investment options,” says Heidi Armstrong, State Custodians director of operations.
“Not only do our loans offer free redraw, free loan splits and a free offset, but we also provide qualified credit advice to back it up. Many investors are looking to draw down on existing equity in order to purchase a new investment property.
Our credit managers guide the investor through different ways to avoid cross-collateralisation and the limitations it can bring for future investment.