2. Preparation

Buying a Property?

Before purchasing an investment property, you should establish its real worth. This can be achieved by comparing the asking price with that of similar properties in the same area and by discussing your needs with real estate agents.

These days, most real estate agents subscribe to a computerised property index service and can access a list of the most recent prices paid for neighbouring properties. If you can find a real estate agent who will provide this information you will have a reasonably accurate idea of the price you should pay.

Of course, your own negotiating skills will also come into play, but the final price will depend, not only on the property's true value, but also on how much the owner is actually willing to accept.

How much can you borrow?

For residential investment properties, principal and interest home loans, we can lend up to 95% of the purchase price or our valuation, whichever is the lesser. For Asset Lines, residential investment properties, interest only home loans, we can lend up to 90% of the purchase price or valuation, whichever is the lesser.^*

However, if you have other residential property that can be used as additional security, we will lend you the full purchase price of the proposed investment property.

To help you determine the amount you could borrow, check out our Pre-approval Calculator. By inputting your current income and expenses, it will estimate approximately how much you can borrow.

^*for home loans and Asset Lines, over 80% LVR Lenders Mortgage insurance is payable. Where Lenders Mortgage Insurance is payable for Asset Lines terms and conditions apply.