Investment Loans

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An investment loan isn’t a lot different to an ordinary home loan. At one time banks would have charged more in interest for an investment loan, but most lenders today will give you the same low rate for either one.  The investment loan is also likely to have all of the same features as the corresponding home loan – they can be identical. However, there will be a difference in how you use it.

What makes an investment loan something that provides a tax deduction is not the name of the loan product, or the property that secures it, but rather, it’s what the money has been used for. You need to be able to clearly trace the path that the money takes from the loan to the purchase of an income producing investment. Ideally it should be a direct path, but if that’s impossible, then you should be able to show a transaction of a precise amount into an account, and then a short time later another transaction for the precise amount going out of that account for the purchase. While you can sort out the details with your accountant, just be aware that this is a very important matter, so plan ahead.

It’s often when people are unprepared that they get “forced” into doing it the wrong way, and they end up paying for it. We ensure that you get the right loan with one of our lending partners at a competitive rate. Better still, our services are cost effective as we are paid by our lending partners for our services. While it’s a lot to think about, getting an investment loan doesn’t have to come with the stress and difficulties that can come with going direct.

Let us help you to get the desirable rate, without the hassle. Call us to make an appointment today.

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