3 things to look for in an investment property loan.
- Low fees are a must
- Competitive interest rates matter
- Personalised service is invaluable
Not all investment loans are the same.
So, what should you look for to maximise gains along your wealth creation journey?
Low fees are a must
Before investing in real estate, it is essential to list all the costs involved. This includes the obvious costs of upkeep, council rates and so on, plus the less obvious – such as the fees attached to your investment loan.
Look for an investment loan with no ongoing monthly or annual fees and talk to your lender to determine which fees can be paid upfront and which can be waived. Some lenders are more proactive than others in keeping their investment loan fees to a minimum.
“At BankVic we offer limited fees, competitive rates and simple products that suit our members' needs,” says BankVic Lending Specialist, Jay Farrell. “Whatever our members pay in fees – which are minimal or non-existent – we invest back into our products.”
Competitive interest rates matter
While seeking the lowest interest rate is crucial, it’s important to know your circumstances when choosing a loan. According to moneysmart.gov.au, an interest rate even 0.5 per cent lower can save you thousands of dollars over time. Investors should also weigh up the pros and cons of fixed versus variable interest rates. A fixed interest rate stays the same for a set period, which can make budgeting easier, yet you won’t benefit if interest rates go down. A variable rate can change as the market changes, which can offer flexibility along with associated volatility.
Jay says getting information from a lender who knows your circumstances can simplify the process of finding the right loan at the right rate.
“Fixed and variable loans, bridging finance, competitive rates – BankVic offers it all,” he says. “We take pride in understanding member needs and suggesting products that are right for them.”
Personalised service is invaluable
Feeling overwhelmed by banking terminology, drowning in paperwork and explaining your situation to a never-ending rotation of strangers can put many people off embarking on their property investment journey.
As a member-based financial institution, BankVic prides itself on the personalised support it provides. You can speak to an investment lending specialist face to face in one of our 6 branches or over the phone or via video conference.
“Our lenders have a personal bond with our members,” Jay says. “Our members are our priority and we give them the tools they need to talk to a lender with investment expertise, six days a week.”