Investment Loans
Investment loans form a key part of many property strategies, and the finance structure behind them needs to be considered carefully from the outset.
At Capital Avenue Mortgage and Finance, we work with clients to explore investment loan options, understand how their current position may support a purchase, and align each scenario with lender policy.
Whether you are buying your first investment property, using equity from your home, refinancing an existing investment loan, or looking to expand your portfolio, the focus is on ensuring the structure makes sense both now and into the future.
How we help with investment loans
Every property investment loan scenario is different. We take the time to understand your position and work through the options available.
When considering investment loans, it’s important to understand how lenders assess your income, equity, and overall position.
This may include:
- Reviewing your current financial position and borrowing capacity
- Exploring the use of equity from an existing property
- Comparing lenders and their servicing models
- Structuring the loan, including Principal & Interest or Interest Only options
- Reviewing existing investment loans and repayment strategies
- Explaining how lenders assess rental income and commitments
The aim is to provide clarity around what may be possible, and how different lenders may assess your situation.
Common investment loan scenarios
We assist with a range of residential investment situations, including:
- Purchasing a first investment property
- Using equity from an owner-occupied home
- Refinancing an existing investment loan
- Purchasing an additional investment property
- Reviewing current rates and loan structure
- Restructuring loans to improve cashflow
Each scenario can be assessed differently by lenders, which is why understanding policy and structure is important.
What lenders typically consider
While requirements vary, lenders will generally assess:
- Income and employment position
- Existing loans, credit cards, and liabilities
- Rental income, including how much is used for servicing
- Deposit or available equity
- Property type and location
- Loan purpose and overall structure
Different lender servicing models can result in different borrowing outcomes.
Important to understand
There are a few key points worth considering early:
- Investment lending policies vary between lenders
- Borrowing capacity can differ based on how rental income is assessed
- Interest-only and Principal & Interest structures impact cashflow differently
- Using equity can be effective, but needs to be structured correctly
- Planning beyond the initial purchase is important
Taking the time to structure things properly can help avoid unnecessary changes later.
Related lending options
Depending on your situation, you may also want to explore other lending options:
Discuss your investment plans
If you are considering an investment property or reviewing your current position, we can walk through your scenario and outline how lenders are likely to assess it.
From there, we can identify suitable options and help you decide on the next steps.
You can also refer to general guidance on investment lending from Moneysmart.