A home loan is finance to purchase a property in which you will live in (which becomes your home). Or a home loan may be to refinance your lending from one bank to the next but still mortgage by your home.
An investment property loan is lending to purchase a property from which you will derive an income from and is not your principal place of residence. The other major difference between the two styles of loans is the tax implications.
A home loan is a non-taxable debt, however an investment property is taxable debt and therefore can be used for negative gearing purposes. This is only a general rule and your accountant's advice should be followed in all cases.
The majority of lending institutions have similar products regardless whether the loan is an investment property loan or a home loan. Let's have an obligation free chat where we can help guide you through the products that are available.
In the past interest rates have been slightly higher with some banks for investment loans, however in today's lending arena there is much to research and many different offers out there, which is why dealing with an experienced Mortgage Broker can ensure you get the best loan for your financial situation.
City Edge Finance can offer you a range of support and advice when it comes to investment property loans and home loans. Because all we do is organise loans for our clients, we have a very acute understanding of what products are out there and also what to avoid with investment loans.
Paula Valmadre | City Edge Finance
BA, Diploma Mortgage Broking Management (MBM), Certificate IV Financial Services
Make an appointment with Paula from City Edge Finance today.