Property Investment Loans

At Best Home Loans, we enjoy making loans easy for property investors

Property Investment Loans

At Best Home Loans, we enjoy making loans easy for property investors. With our extensive knowledge of loans, we continually achieve client satisfaction with our superior service when we help them choose a loan or mortgage that best meets their needs. If you are considering buying an investment property we have access to over 30 lenders at our disposal, we are sure to find the best finance solution for you.

Our website offers detailed information on a variety of loans, as searching for home loans is different for different people. Best Home Loans are able to offer a large range of home loan types to accommodate almost every situation. We also have access to lenders who do construction loans if you are planning to build an investment property.

Types of Loans

Basic Home Loans

The Basic Home Loan is a variable loan product that is not as highly featured as the Standard Variable home loan. The biggest advantage of this home loan is its rate of interest. One of the simplest ways to own your home sooner is to pay the lowest rate possible and as few bank fees as possible. If you don’t need the ‘bells and whistles’ that come with many loans (at a price), then a basic home loan could be the answer.

Lower Interest Rates

Popular with first home buyers, basic home loans typically offer interest rates of half to one per cent below the standard variable rate. Many also have lower ongoing fees. In return for a lower interest rate, basic home loans have fewer features and can be less flexible. Some lenders may offer the option to pay for extra features when you need them. There may also be fees and charges if you decide to switch loans or lenders, or pay off the loan sooner.

At a Glance
  • lower interest rates
  • lower ongoing fees
  • minimal features
  • less flexibility
  • no additional repayments
  • for owner/occupiers only
Fixed Rate Home Loans

If you’re worried about rising interest rates, then a fixed rate home loan may be the solution. Fixed rate home loans offer a fixed interest rate for a set period of time. Because of this, repayments remain the same for the duration of the fixed rate period, usually between one and five years. At the end of the fixed period, you can switch to a variable rate loan or negotiate a new fixed rate or even opt for a split rate loan.

Benefits

Stability – fixed repayments allow you to plan your finances and stick to your budget, even in times of economic uncertainty. Cost – when interest rates rise, repayments won’t increase. However, fixed loans generally have limited features and often charge hefty fees for early payout or for making additional payments.

Time to Fix

Knowing when to fix and when to float is difficult. Even the best economists can’t predict with absolute certainty when interest rates will rise or fall. For this reason, many borrowers opt to fix for periods of less than three years. That way if rates do fall, you are only paying a higher rate of interest for a relatively short period. When considering a fixed rate home loan, spend some time researching recent rate movements, speak to your lender about where rates are headed and brush up on your general economic news. As a rule of thumb, it is best to fix at the bottom, or near the bottom of an interest rate cycle before rates start rising again.

At a Glance
  • monthly repayments remain the same
  • interest rate fixed
  • some lenders charge hefty exit fees
  • less flexible features
  • limited repayment and redraw options
Standard Variable Home Loans

A standard variable rate home loan is one of the most popular mortgages around. For many borrowers, a standard home loan offers the right mix of features, flexibility, interest rate and fees. This type of loan is particularly suitable if you want to make extra repayments without penalty, split your loan or access a line of credit. In return for these benefits, a standard variable rate mortgage will have a higher interest rate than a basic home loan.

At a Glance
  • repayment flexibility
  • ability to make additional repayments
  • redraw facility
  • split loan feature
  • portability
  • may offer direct deposit salary, rental or dividend income, credit/debit card and line of credit facility
  • can be used for building purposes
  • higher interest rates
Standard Variable Home Loans

A standard variable rate home loan is one of the most popular mortgages around. For many borrowers, a standard home loan offers the right mix of features, flexibility, interest rate and fees. This type of loan is particularly suitable if you want to make extra repayments without penalty, split your loan or access a line of credit. In return for these benefits, a standard variable rate mortgage will have a higher interest rate than a basic home loan.

At a Glance
  • repayment flexibility
  • ability to make additional repayments
  • redraw facility
  • split loan feature
  • portability
  • may offer direct deposit salary, rental or dividend income, credit/debit card and line of credit facility
  • can be used for building purposes
  • higher interest rates