95% No Deposit Home Loans - Investment
There was a time where no deposit home loans were only available to people who wanted to buy an owner occupied property, in recent times though these home loans have expanded their reach to encompass investors as well. And this is great news for those who have an investment strategy in place but may not have the deposit and associated costs to facilitate growth in their property portfolio.
Investors generally have to wait until they had a deposit and the out of pocket expenses to move onto their next purchase, or have enough equity in their existing investment property and use these funds to cover the associated costs of purchase. By having to wait to save a deposit or liberate funds from an existing home loan the investor could potentially miss out on opportunities in the market and lose capital growth potential as well.
It should be noted that with the Credit Issues being experienced Globally, Lenders know require applicants to show 5% genuine savings for any loans that are above 85% Loan to Value. Although Lending institutions will still consider applicants under a no deposit scenario, it is of utmost importance that you can demonstrate a 5% savings pattern over a 6 month period.
For further information we recommend, prior to any purchase that you obtain a pre-approval, ensuring that the Lender of choice is comfortable in providing you with the finance to purchase your Investment Property.
You can contact us for more clarification.
No deposit home loans for investment are now an ideal way to minimise potential loss and capitalise on opportunities as they present themselves.
Investors would be fully aware of the potential tax benefits of owning an investment property, from being able to claim the interest component of the home loan through to depreciation of fixtures and fittings. The income generated may also be offset by the claimable items such as home loan interest and depreciation schedules, we always suggest that you seek the advice of a tax professional to ensure what you are entitled to and how to maximise your tax benefits.
Investment home loans such as these also allow rental income to be factored into servicing the loan; in general the home loan provider will factor in up to 80% of rental income for servicing purposes and will also include any other rental that is being generated from existing properties held. No deposit home loans for investment are geared towards applicants who are existing home owners, be it an owner occupied property or other investment properties.
When it comes to the type of property you can purchase as an investor you are not limited to a stand alone home, the choices range from a traditional freestanding home, a unit, an apartment or a townhouse so whether you want to invest big or small the home loan option is there for you.
Let's take a look at some of the key points in relation to no deposit home loans for investment purposes:
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Minimising out of pocket expense by providing full home loan funding for purchase. |
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Factoring in rental income to assist with home loan servicing requirements. |
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Ability to capitalise on opportunities by negating the requirement to save a deposit which is traditionally between 5% and 10% of the property value with traditional home loans. |
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Acceleration of investment portfolio growth through a no deposit home loan where out of pocket expense is minimised. |
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Full suite of services available on no deposit home loans for investment i.e. bank accounts, credit cards and branch networks. |
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Potential tax benefits of owing an investment property. |
There are only a few no deposit home loans for investment in the home loan market, but this doesn't mean that you are limited in the type of services that you can have attached to your home loan. You can still have bank accounts, internet access and branch networks even though this is a unique product.
Why not contact us to arrange an appointment and have one of our home loan consultants come out and see you at a time that suits. It's as simple as sending us some details through our contact us form.
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Useful Sites as a point of reference: |
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