Investment Home Loans
Build your property portfolio with an investment home loan that puts your future first.
THE MiQ DIFFERENCE
What Makes Us Leading Mortgage Brokers?
Finding a broker you can genuinely trust isn’t easy.
But MiQ is different.
We approach your loan holistically, assessing its impact on your current situation and your long-term financial goals.
We’re paid by commission – and our diverse lending panel means there’s no incentive for us to recommend a particular lender.
And we have access to a network of both internal and external specialists, such as buyer’s advocates, financial advisors, and solicitors, who can support your property purchase journey.
Building a strong property portfolio starts right here, with us.
“I’m not one to leave reviews but my recent interaction with Kylie has been so pleasant and seamless, I could not, not share the experience. She has been prompt and transparent with me through the whole process, which has made it a lot less stressful, and I could not thank her enough for it.”
Our Home Loan Solutions
What We Do
Most Australians know that investing in property is one of the best ways to build wealth.
But knowing where to start – and what loan structure is best – can be difficult.
That’s why getting advice from an MiQ broker makes sense.
With access to Australia’s top lenders and a strategic view of your financial objectives, we’ll help you find the loan that works best for you.
Book a free meeting to explore your options and get clear, unbiased advice based on your long-term goals.
Not every investment property requires a cash deposit.
When you accrue usable equity in a property – your home or an existing investment – you can use it to take out a second mortgage.
That means you can start building a property portfolio without needing to realise the capital gains of your current assets.
Schedule a consultation with our investment team to learn more about how an equity loan could work for you.
When you unlock equity in an existing investment property, you can use it to access a better loan.
That can mean getting more favourable conditions – or taking advantage of low interest rates to lock in a fixed rate.
Refinancing does come with certain tax-deductible costs (like discharge fees), but, undertaken strategically, it can significantly improve the financial performance of your property.
Explore foreign investment pathways.
With fluency in Mandarin, Cantonese and Taiwanese, our foreign investment specialists can help you navigate the Treasury application process for property purchases.
Our specialist credit representatives are accredited with over 25 major banks and lenders.
Your Questions About Investment Properties, Answered
To take out an investment property loan, you’ll normally need a deposit equal to 20% of the property’s purchase price (an 80% loan-to-value ratio).
While a mortgage broker may be able to help you invest with a 15% or even a 10% deposit, working with less than 20% means you’ll probably have to pay lender’s mortgage insurance (LMI), a one-time cost that can range from a few thousand to tens of thousands of dollars depending on your risk.
A property is ‘negatively geared’ when its expenses are more than its rental income. Initially, negative gearing can seem confusing – why would you want to pay for property expenses out of pocket?
But, in the context of your broader financial goals, negative gearing can often be a good thing. Because investment property expenses are tax-deductible, holding a negatively geared property can lower your taxable income. When the property is eventually sold, you’ll receive your return on investment from the capital gains it has appreciated.
Even if you haven’t fully paid off your investment property mortgage, you still have equity in your property – the difference between its current market value and the remaining value of your mortgage. For example, if you own a property currently worth $750,000 and you still have a mortgage of $525,000, you have $225,000 in equity.
Some of that equity can be ‘unlocked’ to borrow more money or get a better loan. Usable equity is generally 80% of your property’s current market value minus your mortgage. Using our earlier example, 80% of $750,000 is $600,000; subtract your mortgage of $525,000, and you’re left with $75,000 in usable equity.
You could use that $75,000 to refinance to a loan with more favourable conditions, put down a deposit on a new property, or even take out a renovation loan to improve the value of your existing property.
Finding the right investment property can mean different things depending on your financial goals and circumstances. Generally, a ‘good’ investment property is one that goes up in value (capital growth) and produces enough rental revenue to cover its mortgage and expenses.
Of course, not all rental properties need to make a profit. If your property is negatively geared, your expenses might be more than your income (which can be helpful for tax purposes). Negatively geared properties generally make money through capital gains (which are realised upon the property’s sale), rather than rental income.
A loan-to-value ratio is the amount of money you borrow divided by the purchase price of your property, expressed as a percentage.
For example, if you had a $60,000 deposit on a $600,000 property, you would have an LVR of 90%.
The higher your LVR, the harder it can be to secure a mortgage. If you have an LVR over 80%, your lender may require that you pay lenders’ mortgage insurance (LMI) to offset the added risk. Although traditional banks often have a maximum LVR of 90% or 95%, your mortgage broker may be able to connect you with digital banks that are willing to work with higher LVRs.
A split home loan is a loan that has been divided into two or more parts. Having a split structure means you can nominate one portion as a fixed-rate loan and the other as a variable-rate loan.
Because fixed-rate and variable-rate loans have different features and benefits, a split structure gives you the best of both worlds – a level of repayment certainty, combined with potential benefits from interest rate drops and the ability to make repayments faster. Depending on the lender, you might also get access to redraw facilities and offset accounts.
Of course, the nature of split home loans means that the less desirable features of both loan types are always present. The fixed-rate portion won’t benefit from interest rate drops, and the variable-rate portion could be vulnerable to interest rate rises.
So, while a split loan can be beneficial in certain circumstances, it’s important to talk through the implications with your mortgage broker before you make any decisions.
Build Your Financial Knowledge
Learn more about home loans with our easy-to-read articles and guides.
Build your portfolio with the right investment loan.
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