Frequently asked questions about investing
What does an investment loan comparison rate mean?
Investment loans also have comparison rates, and they’re used the same way as other home loan comparison rates: as a tool to more easily compare options from lender to lender. Tiimely Own home comparison rates are calculated for a $150,000 loan over 25 years. They factor in our fees associated with applying for the loan; our ongoing fees and our fees associated with leaving the loan.
Can I use the equity in my current home as a deposit?
Yes, equity is a powerful tool that can help you to build a profitable investment property portfolio.
The equity in your home can be used as an investment property deposit and if you have enough equity built up, you can borrow 80% of the property’s value without having to use your own cash.
How equity is calculated
Your accessible equity is the difference between your home’s current value and how much you owe on your home loan.
If you’ve lived in your home for five years or more, you’ve probably accumulated quite a bit of accessible equity.
But lenders will only lend up to 80% of your home’s current value minus your current mortgage. This is known as your useable equity, which is quite a bit less than your accessible equity.
It can still however, be a significant amount for an investment property deposit or any other use you may have such as renovating, investing in shares or managed funds or improving your lifestyle with a holiday or a new car.
Buying an investment property
All investments carry some level of risk, so it’s important to get professional financial advice to fully understand your options.
How much can I borrow for an investment property?
This depends on many different factors, such as your income and current living expenses and every lender has their own formula for calculating your borrowing power.
You can get an estimate of your borrowing power with Tiimely Home by using our borrowing calculator.
How do I apply for an investment home loan?
To apply for a Tiimely Own home loan, have a look at our eligibility criteria to see if we could be a good fit. Then, take a look at our home loan options to see if any of our investor home loans suit you. When you’re ready, apply online. Our digital application should take around 15 minutes to submit.
Can I get an owner occupied loan for my investment property?
This is not possible. At the time of application, you’ll need to specify whether you’re planning to live in the property or not. If you’re planning to rent it out, you’ll need an investment home loan.
And if you decide to move into your investment property, you’ll need to change your investment home loan into an owner-occupied one.
