Just like traditional home loans, there are a number of different loan types that can help you fund your investment property.

The most popular are:

Principle and Interest Loans – this type of loan will reduce the borrowed amount each month by dividing repayments into two part, with one part payed towards the interest due on the outstanding loan amount, while the remainder goes towards paying off the outstanding loan amount itself.

Interest Only Loans – this type of loan is suitable for tighter budgets, for investors who can claim the interest as a tax deduction, or for a quick property turnover. Its means what is says, interest only home loans require borrowers to only pay the interest, not the principle.

Credit Line Loan – this type of loan allows borrowers to access the equity of their home to fund an investment or make a home improvement. This type of loan is perfect for individuals who have equity and are considering property investment, as interest is only paid on the credit used.

Everyone has a different situation, and therefore, can suit a specific loan type. The right choice can save you thousands on interest so it pays to be informed.

To find out what type of investment loan suits you, chat to our expert team today.