Investment property lending can affect more than the purchase in front of you. We consider lender policy, borrowing capacity, loan structure and future lending needs when comparing suitable investment loan options.
An investment property loan should be considered in the context of both the current purchase and your future borrowing needs.
Different lenders can assess rental income, existing debts, living expenses and other commitments differently. The structure of the lending can also affect cash flow and how a lender assesses your borrowing capacity for a future purchase.
We compare relevant lender policies, rates, fees and loan features and consider how the proposed lending may affect your ability to borrow again.
Where tax, investment or financial advice is required, this is separate from the Mortgage Broking engagement and should be considered with the appropriate adviser.
Assess how different lenders may treat your income, rental income, existing debts and other commitments, including how the proposed loan may affect future borrowing capacity.
Compare relevant lender policies, rates, fees and loan features across our lender relationships.
Consider fixed, variable or split lending, principal and interest or interest only repayments, offset arrangements and loan term from a credit and cash flow perspective.
Where a property is being purchased with another person, consider lenders and loan structures that may better reflect each borrower's share, subject to lender policy and approval.
Help arrange construction lending and coordinate lender requirements, valuations and progress payments as the build proceeds.
Where the borrower is a Self Managed Super Fund, compare lenders that provide SMSF property lending and manage the credit application. Whether an SMSF should acquire or borrow for an investment is a separate financial advice question.
Manage the credit application and coordinate with the lender and other relevant parties through to settlement.
After settlement, remain available as your Mortgage Broking contact and proactively request a pricing review from the lender every six months to help ensure the interest rate remains competitive.
Investment loans may be available with principal and interest or interest only repayments, subject to lender policy and approval.
Interest only repayments can reduce the required repayment during the interest only period because the principal is not being reduced. When the interest only period ends, repayments can increase because the outstanding balance is then generally repaid over the remaining loan term. Total interest paid over the life of the loan may also be higher.
Principal and interest repayments reduce the loan balance over time but generally require higher repayments than an equivalent interest only arrangement during the interest only period.
We can explain the lending features and repayment implications of the available options. Where the decision depends on investment strategy or tax consequences, those matters should be considered separately with the appropriate adviser.
Buying property with a friend, sibling or other family member can create additional lending considerations.
When one borrower later applies for another loan, lenders can differ in how they assess the jointly held debt and the income associated with the property. Some lenders may assess a larger proportion of the debt than the borrower's ownership share, which can affect future borrowing capacity.
Where available and appropriate, we can consider lenders and structures designed for property share arrangements. The assessment will depend on the ownership, loan structure and individual lender policy.
Legal and tax consequences of co ownership should be considered separately with the appropriate professional adviser.
Construction lending is generally drawn progressively as building work is completed rather than advanced as one amount at settlement.
The lender may require valuations, invoices and other information before releasing progress payments at different stages of the build.
We manage the lending process and coordinate with the lender and relevant parties to help keep valuations, documentation and progress payments moving as the construction progresses.
The exact drawdown stages and requirements vary between lenders and building contracts.
A Self Managed Super Fund may be able to borrow to acquire property where the arrangement satisfies the applicable superannuation, legal and lending requirements.
SMSF property lending is a specialist area and is offered by a narrower group of lenders. Credit assessment, loan to value ratios, pricing, security structures and documentation can differ from lending outside superannuation.
Our Mortgage Broking team can compare SMSF property lending options and manage the credit application.
Whether a Self Managed Super Fund is appropriate, whether the fund should borrow and whether a particular property is suitable for the fund are financial advice matters and are separate from the Mortgage Broking engagement. Private Capital Management can provide SMSF financial advice through its separate Wealth Management service where required.
Our service continues after your investment loan settles. We remain available as your Mortgage Broking contact and proactively request a pricing review from your lender every six months to help ensure your interest rate remains competitive.
Where appropriate, we can also review your loan structure and compare other lending options if your existing lender is no longer competitive or your borrowing needs change.
If you are considering another property, refinancing or changing your existing lending, we can review the available credit options with you.
Not necessarily. Interest only repayments can reduce required repayments during the interest only period, but the principal is not reduced and repayments can increase when that period ends. Total interest paid may also be higher. We can explain the lending and cash flow implications. Investment strategy and tax considerations should be addressed separately with the appropriate adviser.
Yes, subject to lender approval. Joint ownership can affect how lenders assess the debt when either borrower applies for future credit. We can consider relevant lender policies and property share lending structures where available. Legal and tax consequences should be considered separately with the appropriate professional adviser.
Potentially, subject to the applicable superannuation, legal and lender requirements. SMSF lending is a specialist market with different credit policies, structures, pricing and documentation. We can compare SMSF property lenders and manage the credit application. Whether an SMSF should borrow or acquire a particular investment is a separate financial advice matter.
Construction lending is generally released progressively as building work is completed. The lender may require valuations, invoices and other documents before releasing each progress payment. We coordinate the lending requirements throughout the build.
It can. Lenders consider existing debts, rental income and other commitments when assessing a future application, and lender assessment methods differ. We consider future borrowing needs when comparing lending options, although future borrowing capacity cannot be guaranteed.
Yes. For our existing Mortgage Broking clients, we proactively request a pricing review from the lender every six months to help ensure the interest rate remains competitive. If your lender is no longer competitive or your needs change, we can review other credit options.
Private Capital Management's Mortgage Broking team is based at Level 26, 1 Bligh Street in the Sydney CBD. We work with property investors in person in Sydney and online across Australia. Meetings, document collection and signing can generally be completed digitally, allowing us to manage an investment property loan from initial assessment through to settlement.
Licensed and Accredited
ACL 389328
Credit Representative 484265
30+
Lender relationships
Speak with our Mortgage Broking team
Meet with our Mortgage Broking team to discuss your investment property lending, borrowing position and the credit options that may be available. No loan application is made at this initial meeting.
Book a Mortgage Broking Meeting Or contact us with a question