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Investment Loans

Cement in that retirement strategy using property.

Investment loans are a vital tool for those looking to grow their wealth through property investment. At Mortgage Scene, we provide specialist advice to New Zealanders seeking to finance their investment aspirations.

An investment loan is designed for purchasing properties that will be used to generate rental income or capital gains rather than serve as a primary residence. These loans can be used to acquire residential or commercial properties and can vary in terms of structure and features to accommodate different investment strategies.

As your Mortgage Adviser, my role is to help you understand the nuances of investment loans and navigate the process of securing the right financing for your investment goals. I will work with you to assess your financial situation, investment objectives, and risk appetite to identify a suitable loan that complements your investment strategy.

Investment Loan Ins and Outs

Key aspects to consider:

Purpose

Unlike owner-occupier home loans, investment loans are specifically tailored for buying properties that you intend to rent out or sell for profit.

Loan to Value Ratio (LVR)

The LVR is the amount of the loan compared to the value of the property. A higher LVR may require lender’s mortgage insurance (LMI) to protect the lender against default.

Repayment Terms

Investment loans can offer different repayment options, such as interest-only payments, where you only pay the interest for a certain period, or principal and interest payments, where you pay down both the loan amount and interest over time.

Interest Rates

Investment loans may come with slightly higher interest rates compared to standard home loans due to the perceived higher risk associated with investment properties.

Loan Features

Features such as offset accounts, redraw facilities, and the ability to make extra repayments can be beneficial for managing cash flow and reducing the overall interest payable.

Tax Implications

Interest on investment loans is generally tax-deductible in New Zealand when the loan is used for income-producing purposes. It’s important to consult with a tax professional to understand how this can affect your investment.

Get Started.

As your Mortgage Adviser, my role is to help you understand the nuances of investment loans and navigate the process of securing the right financing for your investment goals. I will work with you to assess your financial situation, investment objectives, and risk appetite to identify a suitable loan that complements your investment strategy.

Together, we can explore the various loan products available, ensuring you make an informed decision that aligns with your long-term investment plan. I am dedicated to providing you with clear, unbiased advice, helping you to take advantage of the opportunities that property investment offers while managing the associated risks.

Investment loans can be a powerful vehicle for building wealth, and with the right guidance and support, you can confidently step into the world of property investment. Let’s embark on this journey together, with a clear financial pathway to achieving your investment ambitions.

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