An interest-only investment home loan is a type of loan where the borrower only makes payments on the interest charged on the loan, rather than making payments on the principal (the amount borrowed). This type of loan is commonly used by investors who are looking to maximise their cash flow by minimising their monthly repayments.
With an interest-only investment loan, the borrower only pays the interest on the loan for a specified period, typically between one and five years. After this period, the loan will revert to a principal and interest loan, where the borrower will start paying both the principal and interest on the loan.
It’s also important to note that investment loan interest-only rates may be higher compared to principal and interest loans.
It's advisable to speak with a lending specialist who can guide you through the home loan application process and provide you with tailored advice regarding investment loan interest-only rates. At Qudos Bank, we have a team of experienced lending specialists who can assist you with any questions you may have regarding interest-only investment home loan offers.
An investment loan is a type of mortgage that is specifically designed for individuals who are looking to purchase an investment property, such as a rental property, rather than a primary residence. Some of the key ways in which interest-only loans for investment properties may differ from other mortgages include:
If you're looking for the best interest-only investment loan features and rates, be sure to discuss your individual circumstances and options with a lending expert. Qudos Bank’s lending specialists can provide you with tailored options to help you achieve your investment goals while minimising your interest costs. Get in contact with our team today to find out more about our options and interest-only investment loan rates.
Owner-occupied loans and investment loans are two different types of mortgages that are designed for different purposes. There are several key differences, including:
An investment interest-only home loan can offer several advantages for borrowers, including:
It's important to note that interest-only investment loans may also have some disadvantages, such as higher interest rates. It's advisable to speak with a lending specialist who can guide you through the process as you compare home loans.
At Qudos Bank, we have a team of experienced lending specialists who can assist you with any questions you may have regarding interest-only loans for investment properties. Contact Qudos Bank today to speak with a financial expert who can provide you with tailored options based on your individual circumstances.
An interest-only investment loan can affect your borrowing power as lenders will take into account the higher risk associated with these types of loans. Some factors that can impact your borrowing power are: