Refinancing your Investment Property

The choice between interest-only and principal and interest repayments depends on your investment strategy, cash flow requirements, and tax position. Interest-only repayments result in lower monthly payments, potentially improving cash flow and maximising tax deductions since all payments are typically deductible. This option can be attractive for investors focused on capital growth or those wanting to free up cash flow for additional investments. Principal and interest repayments build equity in the property over time and may offer slightly different loan terms. Many investors start with interest-only periods and then transition to principal and interest. We help you evaluate which repayment structure aligns with your investment goals and financial circumstances.

Yes, using equity from your existing property is a common strategy for purchasing investment properties. If your home has increased in value or you've paid down your mortgage, you may be able to access this equity to fund your investment property purchase. This can be achieved through various loan structures, including increasing your existing home loan or establishing a separate investment loan secured against your home's equity. We help you understand how much equity you can access while maintaining a comfortable financial position. It's important to consider the risks involved, as your home becomes security for the investment property loan.

New Wave Property Finance specialises in providing comprehensive finance and mortgage broking services specifically tailored for residential property investors across Australia. Our services include sourcing suitable investment property loans, refinancing existing investment properties, and providing strategic finance advice to help build your property portfolio. We work with a wide network of lenders to find finance solutions that align with your investment goals and financial circumstances. Our team understands the unique challenges faced by property investors and provides personalised guidance throughout the entire finance process, from initial consultation through to settlement and beyond.

Rental income from your investment property can positively impact your borrowing capacity, though lenders typically assess this income conservatively. Most lenders will only count 75-80% of the expected rental income when calculating your serviceability, accounting for potential vacancy periods and property management costs. You'll need to provide evidence of the rental potential through a rental appraisal from a licensed real estate agent. If you already own investment properties, actual rental income from existing properties will be considered based on lease agreements and rental statements. We help you present your rental income in the most favourable way to maximise your borrowing potential while ensuring the assessment remains realistic.

Our relationship with clients extends well beyond loan settlement, as we understand that successful property investment requires ongoing financial management and strategic planning. We provide regular portfolio reviews to ensure your finance structure continues to meet your evolving needs and investment objectives. This includes monitoring your loans for refinancing opportunities, assessing your borrowing capacity for future investments, and staying informed about changes in lending policies that might affect you. We also maintain communication about market developments and regulatory changes that could impact property investors. When you're ready to expand your portfolio or need to restructure existing loans, we're here to provide continued guidance and support throughout your investment journey.

Investment property finance is available for various residential property types including houses, units, townhouses, and apartments. Most lenders will finance established properties, new properties, and properties purchased off-the-plan, though each may have different requirements and loan-to-value ratios. Some lenders have restrictions on certain property types such as studio apartments, properties in high-density areas, or those with unique characteristics. Location also plays a significant role, with lenders having different policies for metropolitan versus regional areas. We work with you to understand your property preferences and match them with lenders who actively support those property types and locations.

The number of investment properties you can finance depends on several factors including your income, existing debts, deposit availability, and overall financial position. There's no set limit, but each additional property must demonstrate that you can service all loan repayments comfortably. Lenders assess your total debt-to-income ratio, and some have internal policies limiting the number of investment properties they'll finance for one borrower. Your deposit sources become increasingly important with multiple properties, as lenders prefer to see genuine savings rather than relying solely on equity. We help you develop a sustainable finance strategy that supports your portfolio growth while maintaining financial stability and meeting lender requirements.

The documentation required for investment property finance typically includes recent payslips, tax returns for the past two years, bank statements, existing loan statements, and details of your current assets and liabilities. You'll also need a contract of sale or property details for the investment property you're purchasing. Self-employed investors may need additional documentation such as business financial statements, BAS statements, and accountant-prepared financials. We provide you with a comprehensive checklist tailored to your specific situation and lender requirements. Having the right documentation prepared upfront helps streamline the application process and demonstrates your financial capacity to service the investment loan.

Investment property finance carries several tax considerations that can significantly impact your investment returns. Generally, interest payments on investment property loans are tax-deductible, along with other property-related expenses such as maintenance, management fees, and depreciation. However, tax laws are complex and can change, so we strongly recommend consulting with a qualified accountant or tax advisor who specialises in property investment. The structure of your loan can also affect your tax position, particularly regarding interest-only versus principal and interest repayments, and how multiple properties are financed. We work alongside your accounting professionals to ensure your finance structure supports your overall tax strategy.

A mortgage broker acts as your advocate in the finance market, using their expertise and lender relationships to secure appropriate funding for your investment property. Rather than approaching banks directly, we handle the research, application process, and negotiations on your behalf. We assess your financial position, understand your investment strategy, and match you with lenders who specialise in investment property finance. This approach often provides access to loan products and terms that may not be readily available to individual applicants. Additionally, we guide you through the documentation requirements and help structure your loans in a way that supports your long-term investment objectives.