January 2, 2021
Many people borrow money to buy investment properties, aiming to benefit from rising property values or to earn rental income.
Not only did you show support in obtaining commercial finance for our freehold industrial factory, you also got us a great deal for our home loan as well.
If this is in your plans, you’ll want to shop around to compare fees, interest rates and services just as you would if the loan was for your own home. But there are some additional things you’ll need to consider which can have a big impact on your investment returns.
Many lenders provide loans for residential property investments at the same interest rates and fees as their ordinary home loans. Some lenders will even lend to 95 percent of the property value. But a few lenders have lower lending limits for investors, or will lend a lower proportion of the property value if you’re buying an apartment, or a residential property outside the urban areas. This just reflects the higher risk lenders are taking.
