Hello Molly. Welcome to the forums.
Buying an investment property interstate
comes with its own challenges and getting a pre-approval is the first step in that process. Getting a home loan pre-approval
can ensure you can negotiate confidently with vendors whether it’s at auction or not.
The criteria for approval for investment loans is quite complicated especially if negative gearing
benefits need to be considered to prove that you can afford the loan. An expert mortgage broker can help you navigate lender policy on:
- Postcode restrictions: Lenders generally consider metro locations, capital cities to be low risk. You check out our postcode location guide/calculator to get an idea.
- Loan to value ratio (LVR): Lenders use LVR to assess your home loan application. Anything LVR above 80% is considered high risk and will incur Lenders Mortgage Insurance (LMI).
- Negative gearing: Only a few lenders will allow negative gearing benefits to factor into your borrowing power. The key is to apply with the right lender.
- Property type and titles: Each lender has specific policies to the type of property they’ll accept as security. Property titles also tend to vary between states as this can determine your chances at approval.
We specialise in investment loans.
Give us a call on 1300 889 743
or fill in our free assessment form
to find out if you qualify for an investment home loan.