First investment or the next one
Investment property loans in Melbourne
An investment loan is not just a home loan on a different house. How it is set up decides how much you can borrow next time, how much tax you can claim, and how easily you can sell one property without disturbing the others. We set investment lending up with the next purchase in mind, and we work alongside your accountant rather than instead of them.
Why the setup matters more than the rate
Investors who keep buying were set up for it from the start
Most people buy their first investment property through the bank that holds their home loan, and the bank ties the two together. That is quick, and it is usually the wrong structure. When the loans are cross-secured, selling or refinancing one property means the bank re-assesses everything, and your equity is locked up in the bank's hands rather than yours.
Lenders also count rent differently. Most only use part of it, often 75 to 80 percent, to allow for vacancies and costs, and some cap it lower. Interest-only periods, offset accounts, and whether the loan is in your name, joint names or a trust all change the numbers. Two people with the same income and the same property can end up with very different borrowing power depending on how it was done.
So the job is to look past this purchase to the one after it. Release the right amount of equity, keep each loan standing on its own, and choose a lender whose policy on rental income and existing debt leaves room to move.
- Equity release from your home to fund the deposit, without cross-securing the properties
- Interest-only and principal-and-interest options compared for your situation, not the bank's
- Lenders shortlisted by how they treat rental income and existing debt, so the next purchase stays possible
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Twenty years inside Australian banking, including senior roles at ANZ, before starting Exceed Finance. Plain answers, no pressure.
The numbers that matter
At a glance
General information only. Lender policies change and your full situation has to be assessed before any lender will confirm what they will do. Our service is free to you on residential home loans and everything is disclosed in writing.
Where we can usually help most
The investor situations that come up again and again
First investment property
You own your home and want to use the equity. We work out how much can come out, which lender will do it without tying the properties together, and what you can afford to buy.
Second, third and beyond
Borrowing power drops as debt grows. Which lender you use for each property, and in what order, decides how far you can go. Some lenders are far more generous on existing debt than others.
Interest-only coming to an end
When the interest-only period finishes the repayment jumps. We check whether to extend, refinance or switch, and what the current lender will actually do.
Buying through a trust or SMSF
Trust lending has a smaller lender panel and its own rules. Buying inside a self managed super fund is different again, and we write those loans ourselves.
Where our clients are
Across Melbourne, and Australia-wide
We are based in Dandenong South and a lot of our clients are across Melbourne's south-east, but everything can be done by phone, video and secure upload, so we help clients anywhere in Australia.
Other ways we can help:
Simple from start to finish
How it works
Free chat
We work out your goals and what you can actually borrow.
We compare
We search 35+ lenders and shortlist the ones whose policy fits your situation.
We apply
We package and submit your application, and chase it for you.
Settlement
We see it through to approval, and stay in touch afterwards.
Common questions
Questions we get asked a lot
How much deposit do I need for an investment property?
Most lenders will go to 80 percent of the value without lenders mortgage insurance and to 90 percent with it. A few go higher. Many investors do not use cash at all: they release equity from a property they already own and use that as the deposit. Whether that works depends on how much equity there is and what you can service.
How do lenders count rental income?
Most count 75 to 80 percent of the expected rent, to allow for vacancies and costs. Some count less on apartments, holiday lets or properties in particular postcodes. The rent figure usually comes from a rental appraisal or the existing lease. Which lender you choose can change your borrowing power noticeably on the same property.
Should I go interest-only?
It depends on what you are trying to do. Interest-only keeps repayments lower and can suit an investor who wants cashflow and plans to sell or refinance, and it keeps the deductible debt separate from home loan debt. It usually costs a slightly higher rate and the repayments rise when the period ends. Your accountant advises on the tax side; we show you what each option does to the numbers.
What does cross-securitisation mean and why does it matter?
It means one loan is secured by more than one property. Banks like it because they hold more security. Investors usually do not, because selling or refinancing one property then involves the bank re-valuing all of them, and equity can be trapped. We set each loan up against its own property where the lender allows it.
Do you give tax advice?
No. Negative gearing, depreciation and the name the property is bought in are questions for your accountant, and we are happy to work with them directly. What we do is set the loan up so that whatever your accountant recommends is possible, and so the loan does not get in the way later.
Do you charge for this?
Our service is free to you on residential home loans. Everything is disclosed in writing before you commit to anything, and as a licensed credit representative we operate under Best Interests Duty, which legally requires us to act in your interests rather than our own.
Will talking to you affect my credit score?
No. A conversation with us, and the work we do comparing lenders, involves no credit check. A credit enquiry only happens when an actual application is lodged with a lender, and we do not lodge anything until you have chosen to go ahead. The point of doing the work first is so that the application that does go in is the right one.
Find out what your equity could buy, and how to set it up properly
Tell us what you own, what you owe and what you earn. We will tell you how much equity you can use, which lenders fit and how to structure it so the next purchase is still possible.