Property Investment Finance

How much you can borrow will depend on your income, existing debts and commitments, living expenses, available deposit or equity, expected rental income and the lender’s assessment criteria. Different lenders can assess the same investor differently, so your borrowing capacity may vary from one lender to another.

Morris Home Loans can assess your position and compare suitable options across our panel of lenders to help you understand what you may be able to borrow before you start looking for a property.

The deposit required will depend on the property, the amount you want to borrow and the lender’s requirements. A larger deposit can reduce your loan-to-value ratio (LVR) and may give you access to a broader range of lending options.

You’ll also need to allow for purchasing costs such as stamp duty, conveyancing, inspections and other expenses. If you already own property, available equity may potentially form part of your funding strategy.

Potentially, yes. If your property is worth more than the amount you owe on it, you may have equity that could potentially be accessed to help fund the deposit and purchasing costs for an investment property.

However, having equity doesn’t automatically mean you can borrow against all of it. The lender will also consider your income, expenses, existing debts, borrowing capacity and the value of the property. We can help you understand your equity position and explore suitable lending options.

Expected or existing rental income can generally be considered when a lender assesses an investment property loan. However, lenders typically don't rely on 100% of the rent when calculating borrowing capacity, allowing for expenses and periods when the property may be vacant.

The amount of rental income accepted and how it is assessed can vary between lenders. This is one reason your borrowing capacity can differ depending on which lender you approach.

It depends on your circumstances, objectives and the loan options available to you.

With principal-and-interest repayments, you're gradually reducing the amount you owe as well as paying interest. With interest-only repayments, your required repayments generally cover only the interest for an agreed period, so the loan principal isn't reduced during that period.

Both structures have important implications for repayments, total interest costs and your longer-term position. Morris Home Loans can explain the lending options available to you, but you should consider obtaining appropriate tax or financial advice when making decisions about your investment strategy.

Depending on your circumstances, refinancing your existing home loan may allow you to access available equity that could potentially be used towards an investment property purchase.

Refinancing isn't automatically the right solution, though. It's important to consider your existing loan, available equity, borrowing capacity, refinancing costs and the structure of any new lending before proceeding.

Morris Home Loans can review your current mortgage alongside your investment plans and compare suitable lending options.

Yes, you can, but you don't necessarily have to.

Keeping your home and investment lending with one lender can sometimes be convenient, but it doesn't automatically mean you'll receive the most suitable loan structure, rate or lending outcome. There can also be important considerations around how properties are used as security for different loans.

We can compare options across our lender panel and help you understand whether keeping your lending together or using different lenders may be appropriate for your circumstances.

Yes. A mortgage broker can help you understand how your existing properties, loans, equity, rental income and other financial commitments affect your borrowing position as your portfolio develops.

At Morris Home Loans, we can also review how different lenders assess your circumstances and help you explore suitable finance options for your next purchase. For investors planning to acquire more than one property over time, considering the lending implications of each purchase can be particularly important.

No. Morris Home Loans does not charge clients a fee for our mortgage broking service. If your loan proceeds, we are generally paid a commission by the lender. This does not mean you pay an additional broker fee to Morris Home Loans.

We'll clearly disclose the commission we may receive as part of the loan process, so you understand how we're paid before you proceed.

Mortgage brokers are generally paid a commission by the lender when a loan settles, which can include an upfront commission and an ongoing trail commission. Commission arrangements can vary between lenders. We'll disclose the commissions and other relevant remuneration associated with your loan as part of the process. Most importantly, our recommendation isn't based on which lender pays us the most. Mortgage brokers are required to act in your best interests when providing credit assistance.

Not automatically. Interest rate is important, but it's only one part of a home loan. We also consider things such as fees, loan features, borrowing capacity, lending policy and your individual requirements and objectives. A loan with the lowest advertised rate isn't necessarily the lowest-cost or most appropriate loan for every borrower.