These days, residential investment lending has become more difficult to secure. The banking regulator the Australian Prudential Residential Authority (APRA) has ensure that stricter policy is imposed on residential investment lending in a bid to ensure that the Australian property market does not overheat and eventually take a large negative correction.
For residential investment lending, there is usually a maximum borrowing of 80% of the value of the investment property and interest rates are between one and two and half percentage points higher - depending on the lender. To service the loan payment, the rental return plus the disposable income of the applicants is taken into account. Borrowing for residential investment lending can be facilitated by most lenders and at Mortgage Choice in Wynnum we can assist you in your project to invest in residential property.
For commercial property, lending is again restricted - though instead of via regulator imposed limits, through lender policy. The amount of lending varies from lender to lender and can be as low as 60%. The rental return and income flow of the investor is taken into account when looking at the servicing of the loan. Should you be looking at commercial investments, we at Mortgage Choice in Wynnum are able to source loans from a number of lenders to assist in your purchase or investment.
Lending for land and residential development is also available. In this case, the parameters for lending is different with factors such as land or apartment pre-sales, development and building costs, and most importantly, the level of contribution by the investor taken into account to understand the level of lending that will be required and the conditions that that lending will be offered under. At Mortgage Choice in Wynnum, we would be happy to speak with you relating to development finance and have a number of different options and lenders we can speak to to assist you in this endeavour.
Cashflow financing, financing for plant and equipment can be arranged by Mortgage Choice in Wynnum. As with other lending, each of these types of lending have their own requirements as to servicing, income that will be taken into account to provide servicing and how the lender will take security over the lending that is provided. At Mortgage Choice in Wynnum we are able to assist you in all facets of investment and business lending and have a number of lenders offering loans in this space.