Investment Property
Lending for a first rental or an existing portfolio. Servicing, structure, and which lender will actually take the deal.
An investment loan is assessed on the rent, the debts you already have, and how much equity is in the home you live in. The advertised rate is the last part of that conversation.
Orange Network compares 16+ lenders for a first rental through to an existing portfolio. We are not tied to one bank. Mortgage advice is free to you. FSP665511.
A first rental is a different file from a portfolio
The first investment property is usually secured against your own home as well as the rental. Lenders want the lease or a rental appraisal, your income, and every other repayment. One credit card with a high limit can change the answer even if you pay it off each month.
A portfolio is about the whole set: which loans are interest-only, which are principal and interest, and which lender is close to a policy limit. Adding another property to a bank that has stopped saying yes is how deals stall.
What lenders actually count
They shade rental income. They do not take the full weekly rent as if it were salary. Existing mortgages, rates, insurance, and body corporate fees sit on the other side. We run that servicing figure across more than one lender, because the shading and the test rate are not the same everywhere.
If the numbers only work at one bank, that is useful to know before you pay for a building report.
Interest-only or principal and interest
Interest-only keeps the repayment down and leaves the debt in place. Principal and interest costs more each month and pays the loan down. Which one fits depends on cash flow and how long you intend to hold the property.
Tax treatment of interest is your accountant's job, and it has changed more than once. We will tell you when the structure needs them in the room. We do not guess the tax outcome in a mortgage meeting.
What to bring
Rates and insurance for the properties you already own, the latest loan statements, and a rental appraisal or tenancy agreement for the one you are buying. If you have a trust or a company, bring the documents that show who owns what.
Your solicitor sets up the ownership. We set up the lending so the two match.
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Frequently Asked Questions
- How much can I borrow for an investment property?
- It depends on equity, shaded rental income, and the repayments you already have. We run the servicing test across more than one lender. The bank you live with is not always the one with room.
- Should the loan be interest-only or principal and interest?
- Interest-only keeps the monthly cost down and leaves the debt there. Principal and interest pays it down. We model both against your cash flow. The tax result is a question for your accountant.
- Do I need a deposit if I have equity in my own home?
- Often the equity is the deposit. The lender still has to be satisfied the rent and your income cover the new repayment. Equity without servicing is not an approval.
- Can you help if I already have several rentals?
- Yes. We look at the set of loans, not only the new one, and move the application to a lender whose policy still fits a portfolio.
- Is the advice free?
- Yes. There is no upfront fee for mortgage advice. Orange Network is paid a commission by the lender when the loan settles.
Ready to get started?
Our advisers can travel to you for an in-home meeting or arrange a virtual catch up. We're happy to work around your schedule.