What to look for in an investment loan
Finding the best investment loan is just as important as finding the right property. Choosing the right investment loan is not always about getting the lowest interest rate. The best loan for your investment property is the one that works best for your investment strategy.
For example, a loan with a cheap interest rate could be unsuitable for an investor wanting to buy and then re-sell quickly if that same loan comes with a large application fee and a substantial penalty fee for breaking the loan. Excessive fees would reduce the overall profit.
An investor who wants to buy a rental property and hold onto it for years could be missing out on lower interest rates available or alternative loan options to the ones their bank offers over the counter.
These are just a few ways that investors could be losing money by not making the effort to find the right investment home loan product to suit their individual investment strategy.