INVESTMENT PROPERTY LOANS

Investment Property Loans Made Easy

It doesn’t matter if you are buying your first investment property or if you are buying your 100th, we are able to help create an investment loan structure for your investment plans.

Your loan structure is very important when investing. Each property investment should be considered as part of your overall investment plan and stepping stone to your future.

What is an investment loan?

An investment property loan in Australia is a type of loan designed to help finance the purchase of a residential or commercial property for the purpose of generating income. It allows investors to purchase properties to use as rental or short-term accommodation, either for long-term capital gain or for regular income.

You can take out a loan on investment property from banks, credit unions, building societies and many other lenders, including online lenders.

Property investment loan rates tend to be higher than traditional home loans due to the increased risk associated with borrowing for investment property. The size of the deposit required for your investment property may vary depending on the lender’s policies and the borrower’s credit history.

The benefits of investment property loans

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Flexibility

Select from a variety of payment plans and adjustable interest rates that best suit your needs. Get greater control over cash flow and invest more or less when needed

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Tax Benefits

Mortgage interest can be deducted from taxable income. Capital gains earned on the sale of an investment property are taxed at a lower rate than ordinary income

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Higher Returns

Property values typically rise over time. Potential appreciation in value allows investors to get higher returns than other traditional investments like stocks and bonds

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Equity Buildup

As you make regular payments towards your loan balance and the value of the property appreciates over time, this can significantly increase your overall net worth faster than if you had purchased outright with cash or debt-free with no loan attached.

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Access to Expert Advice

Get help from experienced professionals within the industry, i.e., finance brokers, who can help guide you through all aspects including selecting suitable properties, negotiating terms and understanding associated fees and charges.

How to buy investment property: Qualifications and the Application process

The lending criteria when borrowing for investment property is more strict and this is so banks and lending institutions can minimise their risks.

You need to have:

  • 5% to 10% genuine savings
  • A solid employment history
  • An above average credit history
  • Savings account with aged funds
  • A low debt to income ratio

Below are the documents you will need to submit for your investment loan application:

1. Proof of Identity: This can include a valid driver’s license, passport or other government-issued identification.

2. Proof of Employment and Income: Most lenders also require proof of employment such as payslips and our PAYG income summary in order to confirm that you have a stable source of income that can be used to repay the loan in full over time.

If you are self-employed, there are specific documents that you need to submit in order to apply for an investment loan. These include personal and business financial information, such as tax returns, income statements, balance sheets, profit and loss statements and bank statements. Additionally, lenders may require a copy of your business license or other documentation to verify the type of business you operate as well as any government contracts you may have.

3. Financial Statements: Bank statements, income tax returns and other financial documents are necessary to demonstrate your ability to repay the loan. These should be kept up-to-date and submitted with your application.

4. Credit Report: A credit report is typically used by lenders to determine your creditworthiness and help them decide whether or not they should approve the loan request. Working with the brokers at ZEP Finance will save you time on this front as we order current credit reports for all our clients.

5. Collateral Documents: If you are using collateral as part of your investment plan, then you need to provide documentation that proves ownership of whatever asset is being used as collateral (such as real estate deeds).

Things to Consider When Taking Out an Investment Property Loan

1. Be aware of the different types of loan products.

Investment property loans in Australia offer a variety of options for individuals and businesses looking to purchase or develop real estate for future use. The most common types of investment property loan are:

  • Owner-occupier loans are designed to allow investors to secure a property while they are living in it.
  • Equity release loans give borrowers access to funds from their current mortgage that would otherwise remain locked away until the loan is repaid.
  • Bridging finance is used when a borrower needs short-term funding between purchasing one investment property and selling another one.
  • Construction loans are designed specifically for developers who are planning on building or renovating existing properties into multiple dwellings or apartments that will be rented out as investments.
  • Commercial and development finance are specifically tailored towards larger projects. These include office blocks, shopping centres, warehouses, factories and more which will ultimately generate income for the borrower through rent payments from tenants occupying those buildings once complete.

2. Costs associated with borrowing for investment property:

Upfront costs:

  • Stamp duty
  • Conveyancing fees
  • Legal costs
  • Search fees
  • Pest and building reports

Ongoing costs:

  • Council and water rates
  • Building insurance
  • Landlord insurance
  • Body corporate fees
  • Land tax
  • Property management fees (if you use an agent)
  • Repairs and maintenance costs

3. Factor in the potential tax implications.

Different loan structures can provide different tax deductions and benefits so careful consideration should be given when selecting a lender.

It is important to speak to a qualified accountant or financial planner prior to taking out a loan so you understand any potential taxation benefits or liabilities that may arise from your chosen structure.

4. Do your due diligence of researching and studying the real estate market.

You should review the current economic climate and possible future trends which can affect your investments. These factors include changes in property prices, unemployment rates and interest rates before entering into any agreements with a lender.

You can protect yourself and your investment property from the potential risks associated with this type of venture when you study and understand the industry thoroughly.

5. Assess your financial situation

Finally, assess your financial capability both now, and over time as investments change throughout their lifetime. Looking at your cash flow situation and mitigating any potential risks associated with repaying debt will assist in setting up a successful investment strategy.

The most effective way to do this is by seeking professional advice from qualified finance brokers who specialise in finance for property investments in Australia.

Car Loans

You can draw out equity from your existing property to use as a deposit for your new investment.

FAQs on Investment Property Loans

  • Investment property loans in Australia are typically offered as variable rate or fixed rate, depending on the borrower’s preference. Variable rate home loans allow borrowers to benefit from any interest rate reductions, while fixed rates offer a degree of certainty and can help to minimise potential payment increases. Additionally, split loan products are also available as a combination of variable and fixed rates.

Why go with the investment loans brokers at ZEP Finance

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Best rate

We will research the market, compare rates from various banks and lenders, and negotiate for the best loan that suit your needs on your behalf

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Stress less

We do everything for you! We believe borrowers should be able to enjoy a simple application process simple. Relax as we manage the paperwork for you from application right through to settlement.

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Expert advice

You have us at your disposal for any of your questions about the loan process. Your current financial situation will be assessed, and we’ll provide expert advice on how best to achieve that building goal.

Reviews for ZEP Finance

  • Second to none

    Over many years and many transactions, Zain Peart and his team (Kylie, thank you) have always been great, but this time they went above and beyond. Our situation is complex, the investment property transaction we just executed was complex, and what was even more complex was the timing of the transaction (floods, COVID-19, interest rate increases, maternity leave, personal matters etc). ZEP provided much needed stability in these uncertain times. There is nothing that office cannot do, and it seems the more complex the scenario the more they stand out. I cannot recommend ZEP highly enough, and do to my family, friends and clients 100% of the time.

    Second to none
    NL Daley
    New Purch
  • Second to none

    Over many years and many transactions, Zain Peart and his team (Kylie, thank you) have always been great, but this time they went above and beyond. Our situation is complex, the investment property transaction we just executed was complex, and what was even more complex was the timing of the transaction (floods, COVID-19, interest rate increases, maternity leave, personal matters etc). ZEP provided much needed stability in these uncertain times. There is nothing that office cannot do, and it seems the more complex the scenario the more they stand out. I cannot recommend ZEP highly enough, and do to my family, friends and clients 100% of the time.

    Second to none
    NL Daley
    New Purch
  • Second to none

    Over many years and many transactions, Zain Peart and his team (Kylie, thank you) have always been great, but this time they went above and beyond. Our situation is complex, the investment property transaction we just executed was complex, and what was even more complex was the timing of the transaction (floods, COVID-19, interest rate increases, maternity leave, personal matters etc). ZEP provided much needed stability in these uncertain times. There is nothing that office cannot do, and it seems the more complex the scenario the more they stand out. I cannot recommend ZEP highly enough, and do to my family, friends and clients 100% of the time.

    Second to none
    NL Daley
    New Purch
Michael WolhuterMichael Wolhuter
23:19 01 Mar 24
ZEP took the time to explain the home loan process to making it stress free. They were always there to help when needed, wound highly recommend Zain and the team.
Jaime MullerJaime Muller
05:17 29 Feb 24
We had such a straightforward, no problems process with Zep. Communication was clear and consistent and the staff were all friendly and accomodating. Thank you!
Kurt MalaveyKurt Malavey
09:21 22 Feb 24
Zain and the team have helped us with loans, refinance and financial advice. They are unbelievable and easy to deal with. Call them now!
ShaunShaun
06:36 22 Feb 24
Zain and the team were great. All the way from initial contact to past our settlement date to make sure the whole process was smooth.Dealing with Karina and Trudy they made everything hassle-free and had great communication at all times. 11/10, highly recommend.
Jasmine DunwoodieJasmine Dunwoodie
03:44 20 Feb 24
Zach ConstantinouZach Constantinou
11:00 15 Feb 24
caris galvincaris galvin
22:31 13 Feb 24
We have been very happy with the service provided by Kylie and the rest of the team at ZEP finance- they've ensured a very smooth journey for our refinance and property purchase. We've already recommended them to friends and family
Matthew GordosMatthew Gordos
11:43 11 Jan 24
ZEP Finance helped us throughout the process of selling and purchasing our homes by ensuring that paperwork and communication with our finance institutions was completed under tight timeframes
Ash KnowlandAsh Knowland
19:40 18 Dec 23
Zep finance helped us achieve what we were trying to do when no other brokers could. The whole experience was met with an extremely helpful and positive mindset with nothing ever being a problem.The addition of incredibly helpful staff made our experience with zep one that we will highly recommend to anyone looking to refinance like we did.Give Zain and the team a call, you won't be left disappointedAsh
Belinda KehoeBelinda Kehoe
04:27 18 Dec 23
Great service again from zep finance.Could not recommend them highly enough.
Dani ThompsonDani Thompson
03:19 12 Dec 23
Can not recommend Zain and his team enough! They are amazing at what they do..their communication, knowledge and processes are flawless.Thanks again guys!!!
Paul OPaul O
23:51 05 Dec 23
Zain and the team at ZEP Finance are incredibly responsive to any questions and are genuinely customer-focused. They invest the time to get to know their clients and develop long-term relationships with them. It's comforting to know that expert advice and any assistance is only ever a phone call or email away. Over the past 5 years, I've found that they always act in the client's best interest and nothing is ever too difficult for them whether it be assisting with identifying the best lender for your needs, renewing loans or purchasing a home. They just make it happen!
Sorayah ZazuriSorayah Zazuri
04:08 14 Nov 23
Zain, Emma and the whole team at ZEP finance have done an amazing job. They successfully navigated us through our construction loan, and then onto refinancing to get us a better home loan with a reduced interest rate. We’ll done guys! You have taken a huge weight off of our shoulders. We look forward to dealing with your amazing, local, Lennox Head, family run business for any new mortgage needs!
Greg PowellGreg Powell
21:29 07 Nov 23
Zain and his team are friendly, efficient and professional. We have used ZEP’s services on a few occasions and I can not speak highly enough of them. They are patient and understanding and go above and beyond any expectations you may have. No hesitation in giving 5 stars plus…. Your emergency is their urgency. Fast and easy.
Shannon SayeShannon Saye
23:26 31 Oct 23
Highly recommend using ZEP Finance they made the process of getting finance easy and completed the process quickly and efficiently.
Charlotte MonlunCharlotte Monlun
03:34 10 Oct 23
Zain and the team at ZEP Finance came recommended when we started looking at buying near Lennox and needed financing. Zain was able to assist us in getting the best solution for our mortgage. The team was incredibly attentive, responsive with any queries we had along the way and professional. They made the process seem as seamless as can be considering the current lending context. A big thank you Zain, Trudy and Kelly for your expertise and support, we will certainly recommend your services.
Jamie HetheringtonJamie Hetherington
11:14 03 Oct 23
Couldn't be happier with the team at ZEP Finance. Can be quite overwhelming when making these life changes and they eased us through it all! Thank you so much
Sheridan VenessSheridan Veness
07:17 11 Sep 23
We just purchased our second home with Zain and his teams help and my goodness they are truly amazing ! They are quick and efficient and make the process stress free not to mention they are all so lovely and helpful with every need . Couldn’t recommend them enough!
Marnie SironenMarnie Sironen
06:45 01 Sep 23
Zain, Emma, Karina and the team were wonderful. They expertly navigated our complex situation, were endlessly patient and explained everything to us in plain English, which was really appreciated. Highly recommend.
SALT GYPSYSALT GYPSY
00:35 26 Aug 23
We were recommended Zep Finance by friends of ours. Zain, Emma and the team met and exceeded our expectations and we couldn’t recommend highly enough. This was our first home loan experience and their communication was always prompt and clearly explained which made the whole process as straightforward as possible for us. Thanks so much for your perseverance and dedication to finding a home loan solution for us guys, really appreciated!
Jade RogersJade Rogers
09:28 25 Aug 23
Brett WatsonBrett Watson
05:01 14 Aug 23
Kylie Harris from Zep helped me throughout the process and was amazing in my opinion, I have already recommended Zep to friends .
Micheal SimpsonMicheal Simpson
04:48 14 Aug 23
shelby milneshelby milne
05:33 10 Aug 23
ZEP finance was fast and efficient. The whole team are more than accommodating and very friendly! I would 100% recommend and be using them again in future.
Andro EngelbrechtAndro Engelbrecht
00:12 25 Jul 23
Fantastic service once again! We've used Zain and the team from ZEP Finance for our past mortgages and recently to extend our current home loan to get some renovations done. Zain and his team was excellent at communication and did everything in a timely manner. Highly recommend and will definitely use them again in the future.
Hong KHong K
13:03 05 Jul 23
Zep finance is truly amazing and will help you achieve the best result. As a first home buyer, I am not sure about the process but my broker Kylie and Karina have always been very helpful, always kept me informed throughout the process and went above and beyond to assist until it is all completed. It was an amazing experience I couldn’t have done it without ZEP Finance !!!
Louise HarrisLouise Harris
10:41 11 May 23
Zep finance seamlessly managed our recent refinancing and made the whole process so easy for us. The whole team are friendly, professional and very thorough. They were also amazing to deal with a few years ago when we were first home buyers navigating a construction loan. Highly recommend!
Thomas HarrisThomas Harris
04:30 10 May 23
Zain and the ZEP team helped us get our initial home loan in 2019 and have just assisted us with refinancing. Great team, happy to answer all questions and a smooth process. Would recommend to anyone, near and far - we work with team from Western Brisbane without any dramas!
Jean BarrJean Barr
10:40 19 Apr 23
Made it easy for me to get my house loan. The staff were all very professional and made the whole process much easier and smoother. I would never have been able to settle on my purchase so quickly had I not had the team behind me. Everything was clearly explained to me. They took the stress out of the whole process.
Pip CPip C
10:24 19 Apr 23
Zain and his team did a wonderful job securing me a home loan and helping me understand the steps involved. They communicated with all the necessary parties on my behalf and l couldn't have been happier with the work they did for me. I highly recommend ZEP finances. Many thanks Zain, Kylie, Lisa and all the team.From a happy first home owner!
Louise O'ConnellLouise O'Connell
08:32 30 Mar 23
Zep Finance are world class! This was my 6th mortgage and by far the best advice and all round service I've ever experienced. Kylie went above and beyond to find me the best deal, with Trudy, Emma, Jasmine and Caitlin keeping me informed along the way. Thanks ZEP! I really appreciate the great loan you negotiated.Highly recommend this team!
Demi KroehnertDemi Kroehnert
01:23 28 Jan 23
Amazing experience for first home purchaseZEP Finance we’re excellent in making our fist home buying experience simple. Our broker, Joel, provided an awesome experience when purchasing our very first home and wer were able to purchase the home of our dreams. Throughout the whole process, Joel always communicated with us clearly and answered any questions we had, making sure we understood. Thank you to Joel and ZEP finance for providing us with a great experience and we will be sure to return when we need a broker in the future.
Brad NewbyBrad Newby
22:20 27 Dec 22
The team at ZEP Finance were very professional throughout the whole loan process and provided us with several options that suited our circumstances. Not living local was not an issue for them and the communication provided from the ZEP team was amazing. If you are looking for a service which is tailored to your specific needs we highly recommend reaching out to Zain and his team. Thanks for helping us achieve another milestone in our lives.
So grateful for Zep Finance.There are few words that can explain our gratitute to Zain and Joel.The brokerage service was excellent from beginning to end in assisting us to secure our very first home.Zain and Joel made us feel valued and informed each and every step of the way on our journey to owning our own home.We can't thank them enough for their exceptional, meticulous, professional and efficent assistance and support.If you are looking for a broker, we can absolutely recommend Zep Finance and will continue to use their services in the future!From the Myburghs.
Abbey McBurneyAbbey McBurney
23:37 20 Oct 22
Third time - Still Amazing ServiceThis was our third time working with ZEP Finance. The whole team supported us through a very difficult process negotiating with our previous lender following the February/March floods. We would have been lost without their support.They then switched gears and sprung into action to get us locked and loaded to buy a new, flood free home.Joel helped us obtain pre-approval with our preferred lender and the whole process from exploring options to pre approval to settlement was seamless and stress free.Zain has built a quality and caring team, whose attention to detail and customer service is hands down second to none.I have always, and will continue to recommend ZEP to anyone looking into finance options.
The Image CollectiveThe Image Collective
05:22 04 Oct 22
Highly recommend the entire team at ZEP to anyone needing finance information or services. The results were nothing short of amazing. This experience for me has restored my reservations about loans/finance with their professionalism and knowledge. I understood everything that was explained, was given options and felt so empowered to leave my long term bank.I have since referred family and friends to see them and hope anyone reading this gives them a go. Trust me, you won't be disappointed. THANK YOU ZEP!!!
Nat DaleyNat Daley
00:18 02 Aug 22
Second to noneOver many years and many transactions, Zain Peart and his team (Kylie, thank you) have always been great, but this time they went above and beyond. Our situation is complex, the investment property transaction we just executed was complex, and what was even more complex was the timing of the transaction (floods, COVID-19, interest rate increases, maternity leave, personal matters etc). ZEP provided much needed stability in these uncertain times. There is nothing that office cannot do, and it seems the more complex the scenario the more they stand out. I cannot recommend ZEP highly enough, and do to my family, friends and clients 100% of the time.
Wan BradridgeWan Bradridge
10:06 11 Jul 22
Amazing service! Zain, Kylie and the team went above and beyond for us. They made the process so easy. They did all the hard part for us, we didn’t even have to lift a finger! Always keeping us up to date with the progress of the loan application, very professional and friendly. We would recommend the team to anyone! Thank you guys! Craig and Wan
J CJ C
10:03 11 Jul 22
I couldn't have asked for better service! Zain, Jasmine, Emma and the entire team at ZEP worked around the clock to find the best possible loan for my situation.If you're looking for a professional, timely, considerate and understanding broker, ZEP is my recommendation. Jasmine always replied to my requests quickly and efficiently and Zain worked tiressly to find the product just for me.
Sally CookSally Cook
10:02 17 May 22
PROFESSIONALSERVICE AND GREAT COMMUNICATION !!Zain, Joel and his team were extremely helpful, responsive and gave us excellent advice throughout the process of obtaining our loan and securing a home in this difficult property market. Their service was sincere and supportive and we would highly recommend to anyone to use their services. We will most definitely reach out to them once again for any further loan applications. These guys made it all happen !!! THANKS HEAPS
Helen WoodburnHelen Woodburn
00:55 15 Jan 22
Buying and selling property can be stressful so having someone assist us with our financing towards the selling and buying of a property was very important to us. Zain at ZEP Finance came highly recommended. Both Zain and his team did an incredible, efficient and professional job from start to finish. Zain's knowledge and experience is exceptional which instilled our confidence and trust. The team's communication was outstanding and their timely and prompt attention to detail provided comfort and peace of mind throughout the process. This meant we could focus on other necessities associated with moving house as well as saving us a heap of time. We would highly recommend Zain and ZEP Finance to anyone requiring a mortgage broker.
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