Getting into the property market isn’t always about buying a home to live in. It can also be an excellent investment and wealth creation opportunity. If this is your situation, you’ll want to understand investor home loan rates and the differences they may have with owner-occupier rates. You’ll also want to know the advantages you may get with investment home loan rates and the things you need to consider.
Investor home loan rates are applied to the home loan or mortgage you would take out on a property you’ve purchased to use as an investment. This means the property will be rented out and generate an income for you rather than a property you live in.
The main difference between investor home loan rates and owner-occupier rates is that lenders often offer lower or more discounted rates to owner-occupiers. This is because lenders see property investment as a higher-risk, and therefore investor home loan rates are higher.
When purchasing a property that you’re solely going to use as an investment property and not live in, understanding the benefits of getting an investment home loan will help.
There are also some things you’ll need to consider before taking on an investment home loan.
Yes, you need to use investment home loan rates if 100% of your property is being rented out and earning an income. However, if you’re only renting out part of your property whilst living in it, you can use an owner-occupier loan.
The government increased regulations around these loan types to help lenders manage their portfolios and exposure to investment loans. This means they often include in your home loan contract that they need to be informed if the purpose of your property changes. So if you live in your property for a few years and then decide to move out and use the property as an investment property, you’ll need to let your lender know.
If you now have a better idea of investment home loan rates and want to find the right investor home loan for you, check out Yards investor home loan rates.
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